Not upheld: Goods and services under S75 complaint against American Express Services Europe Limited

Decision detail

Summary

Mr N purchased a holiday club membership for $14,200 USD using his credit card and later sought to cancel, with the supplier retaining a $2,840 USD cancellation fee. Mr N claimed he was misled about which company he was meeting and was coerced into signing under pressure. He raised a Section 75 claim for misrepresentation and alleged an unfair credit relationship under Section 140A of the Consumer Credit Act. The ombudsman found that while Mr N may have been initially misled about the supplier's identity, he became aware of the truth upon attending the meeting, so any misrepresentation did not induce the contract. The ombudsman also found insufficient evidence of coercion, noting Mr N appeared to have changed his mind after conducting post-purchase research rather than being pressured at the time of sale. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while Mr N may have been misled about which company he was meeting, he became aware of the true identity of the supplier when he attended the meeting, meaning any initial misrepresentation did not induce him to enter the contract. Regarding coercion, the ombudsman found insufficient evidence that Mr N's ability to exercise choice was significantly impaired by pressure from the supplier. The ombudsman noted Mr N likely changed his mind after conducting post-purchase research rather than being coerced at the time of sale. The contract terms, including the cancellation clause, were clearly initialled by Mr N before signing, demonstrating his awareness. The ombudsman declined to assess potential breaches of UAE law, considering that beyond the remit of the FOS.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website