Not upheld: claim handling - chargeback and Section 75 protection complaint against Barclays Bank UK PLC trading as Tesco Bank

Decision detail

Summary

Mr U complained about how Tesco Bank handled his claim regarding poor service at a private restaurant function for which he paid £420 using his credit card. TB declined to uphold the claim, stating there was no valid Section 75 claim and did not attempt a chargeback. The ombudsman found that TB was not obligated to attempt a chargeback as it would have had no reasonable prospect of success, and that Section 75 protection did not apply because Mr U's wife was the contracting party with the supplier, not Mr U himself. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that TB was not obligated to attempt a chargeback because it would have had no reasonable prospect of success under Mastercard rules. The supplier had offered compensation, the service was provided as described (the quality issues did not constitute a defective service claim), and the service was fully used. Regarding Section 75, the ombudsman determined that Mr U could not bring a valid claim because his wife, not he, was the contracting party with the supplier, meaning the requisite Debtor-Creditor-Supplier agreement was not in place. Additionally, even if DCS applied, the individual food and drink items were priced under £100, falling below the Section 75 threshold, and the venue charge was free.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website