Not upheld: chargeback and section 75 claim handling; alleged breach of contract complaint against American Express Services Europe Limited

Decision detail

Summary

Mr N paid £482.28 via AmEx credit card for a three-night hotel stay but experienced a significant delay in checking in (arriving at noon but not checking in until 10:30pm). He requested a refund for one night's stay, claiming breach of contract. The merchant declined, stating Mr N received three nights as booked plus compensation (room upgrade and lounge access). AmEx declined both the chargeback claim and section 75 claim on the basis that Mr N received the contracted services. The ombudsman upheld AmEx's decision, finding that while the check-in delay was poor service, Mr N received three nights accommodation as contracted and the merchant's remedies were sufficient, with insufficient evidence that the offered upgrade and lounge access were not provided.

The Ombudsman's reasoning

The ombudsman found that Mr N contracted for three nights accommodation and received three nights accommodation. While the check-in delay was poor service, the merchant offered remedies (upgrade and lounge access) which Mr N accepted by checking in without cancelling. The chargeback rules are prescriptive and do not apply where goods/services were received as agreed. For section 75, there was insufficient evidence that the merchant breached contract or misrepresented services, as the upgrade and lounge access could not be definitively proven absent. The service failure, while acknowledged, was remedied during the stay.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website