Upheld: service failure, poor complaint handling, and inappropriate interest charges complaint against American Express Services Europe Limited

Decision detail

Summary

Mr M attempted to pay £4,734 to his American Express credit card but the payment was returned due to an incomplete reference number, causing the credit to appear in his bank account instead. When Mr M contacted AESEL about the unexplained credit and missing payment, the agent failed to identify the payment rejection and did not provide a clear explanation, leaving Mr M worried about fraud. AESEL took an unreasonably long time to investigate and resolve the straightforward allocation issue, and charged interest on the account during this period. The ombudsman upheld the complaint, finding AESEL's handling was poor, and ordered compensation of £100 and refund of interest charges during the investigation period.

The Ombudsman's reasoning

Although the initial issue was caused by Mr M providing an incomplete reference number, AESEL failed to handle the situation appropriately once Mr M brought it to their attention. The call recordings show the AESEL agent failed to identify the payment rejection and did not explain what happened, causing Mr M distress and worry about fraud. AESEL also took an unreasonably long time to investigate and resolve a straightforward allocation issue. However, interest charged after the final response letter of 22 August 2025 was Mr M's responsibility as he chose to pay minimum payments rather than resolve the issue, and this was in line with the terms and conditions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website