Not upheld: Card / payment disputes complaint against American Express Services Europe Limited

Decision detail

Summary

Mr I's young child made an unauthorized purchase of flight tickets for £1,664.94 through third-party booking website L using Mr I's Amex credit card. When Mr I requested cancellation, L offered a refund with deductions totaling approximately £395, which Mr I disputed as he believed airline T offered full refunds within 24 hours of booking. Mr I claimed Amex should uphold his Section 75 claim against L for misrepresentation or breach of contract. The ombudsman found that L's terms and conditions clearly permitted deduction of cancellation charges and airline surcharges, and that L made no misrepresentation as it did not guarantee a full refund. Since Mr I booked through L rather than directly with T, L's terms applied, and Amex was entitled to decline the Section 75 claim.

The Ombudsman's reasoning

The ombudsman found that L's terms and conditions clearly set out that charges may be deducted for cancelled flights and that the airline's deductions were separate from L's £35 per person handling fee. There was no misrepresentation by L as it did not guarantee a full refund minus only its £35 fee, nor did it promise the airline would not deduct charges. The terms explicitly authorized L to subtract handling fees and airline surcharges. Mr I booked through L, not directly with T, so L's terms applied rather than T's direct booking policy. No chargeback would have succeeded as there were no grounds to dispute the transaction.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website