Not upheld: chargeback handling and service failures complaint against Bank of Scotland plc trading as Halifax

Decision detail

Summary

Mr B complained that Halifax failed to properly manage his chargeback claims for gambling transactions totalling approximately £30,000, took too long to resolve his complaint, and refused to communicate with him. Halifax had refunded £7,385 for transactions made while a gambling block was active and paid £300 compensation. The ombudsman found that Halifax fairly handled the chargebacks by requiring evidence under Visa's rules and that for transactions outside the gambling block period, Mr B could not evidence the transactions would have declined with correct MCC codes. The ombudsman determined the £300 compensation was fair and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Halifax fairly handled the chargeback claims by requiring evidence to support claims under Visa's dispute condition 12.7. For transactions outside the gambling block period (before 5 December and after 23 December 2024), Mr B could not evidence that transactions would have declined had the correct MCC code been used, as there was no block in place to prevent them. Halifax was entitled to require evidence before submitting chargebacks, particularly given the high volume and value involved. Visa confirmed there are no chargeback rights for gambling transactions generally. The £300 compensation already paid was adequate for the service failures experienced.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website