Not upheld: Goods and services under S75 complaint against Bank of Scotland Plc

Decision detail

Summary

Mrs N booked flights through travel agent T for £2,800 (£2,200 paid by Halifax credit card) but was unable to change her return flights despite being told the booking was fully flexible. She purchased alternative return flights for £1,727.90 and raised a section 75 claim with Halifax. Halifax, unable to obtain a cost breakdown of outbound versus return flights, offered £1,400 (50% refund) which Mrs N accepted in full and final settlement. Mrs N later complained seeking additional compensation. The ombudsman found Halifax's settlement offer fair and reasonable given Mrs N received the outbound flights, would have faced change fees if modifying through the travel agent, and the full and final settlement agreement was binding.

The Ombudsman's reasoning

The ombudsman found that Halifax acted fairly in offering 50% refund (£1,400) of the total flight cost paid, as it could not obtain a detailed breakdown of outbound versus return flight costs despite reasonable attempts. The ombudsman considered that Mrs N received the outbound flights (which had value), and that even if she had successfully changed flights through T, she would likely have incurred £400 in change fees (£80 per ticket × 5 tickets). The ombudsman noted that the cost of return flights was inevitable regardless, and Mrs N used the alternative return flights she purchased. Most significantly, the ombudsman held that the full and final settlement agreement Mrs N signed was binding and precluded further claims, though the ombudsman exercised discretion to consider merits and found Halifax's offer reasonable in any event.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website