Not upheld: unfair charges and complaint handling complaint against American Express Services Europe Limited

Decision detail

Summary

Mr C complained that American Express unfairly charged him a £12 returned payment fee when his direct debit failed due to insufficient funds, and that he received conflicting information about his complaint status. The ombudsman found the fee was clearly disclosed in the credit agreement in bold text within a table on page three, making it transparent and fair. While the ombudsman agreed Amex should have been clearer about complaint status, no compensation was awarded as the confusion was resolved the same day and did not prevent Mr C from bringing his complaint to the FOS. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that the returned payment fee was clearly brought to Mr C's attention in the credit agreement, appearing in bold text on page three within a table format. Since Mr C did not have sufficient funds and the payment was recalled by his bank, the fee was legitimately charged in accordance with the terms he agreed to. While Amex should have been clearer about complaint status, no compensation was warranted because the conflicting information was resolved the same day and did not prevent Mr C from bringing his complaint to the FOS.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website