Not upheld: Goods and services under S75 complaint against HSBC UK Bank Plc (trading as First Direct)

Decision detail

Summary

Mr A paid £195 for a one-day motorcycle training course using his HSBC credit card but did not complete it or receive the completion certificate because the instructor stopped his training due to safety concerns about his progress. Mr A complained to both the Supplier and HSBC, claiming the instructor was rude and the course was not properly delivered. HSBC considered both a chargeback claim and a Section 75 Consumer Credit Act claim but declined to pursue either. The ombudsman upheld HSBC's decision, finding that the course terms permitted the instructor to stop training for safety reasons and that there was no evidence of breach of contract or misrepresentation by the Supplier. The ombudsman noted that delivering a service with reasonable care and skill does not guarantee success or qualification, particularly where participant safety is a concern.

The Ombudsman's reasoning

The ombudsman found that the chargeback had no reasonable prospect of success because the course terms clearly permitted the instructor to stop training if safety concerns arose, which occurred here. Regarding the Section 75 claim, the ombudsman found no evidence of breach of contract or material misrepresentation by the Supplier. The course was delivered with reasonable care and skill by stopping Mr A's participation for safety reasons. Mr A's allegations of rude behaviour were largely unsupported by evidence and fall outside HSBC's liability for breach of contract or misrepresentation. The ombudsman concluded HSBC fairly considered both claims and had nothing further to do.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website