Upheld: service failure, irresponsible credit file reporting, delayed DSAR responses, inadequate account administration complaint against American Express Services Europe Limited

Decision detail

Summary

Mrs H complained about service failures from American Express following a change in her personal circumstances in December 2024. After agreeing to a repayment plan with no further charges, her account was passed between third-party administrators, during which adverse information was recorded on her credit file and she experienced delays in obtaining account information and responses to Data Subject Access Requests. American Express subsequently wrote off her balance, removed adverse markers, and paid £550 compensation. The FOS Investigator recommended an additional £400 compensation, which American Express accepted but Mrs H disputed as insufficient. The ombudsman upheld the complaint and directed American Express to pay the additional £400, finding the total £950 compensation fair and reasonable for the service failures, while rejecting claims for consequential medical costs due to insufficient evidence of causation.

The Ombudsman's reasoning

The ombudsman found that American Express failed to provide adequate service during a difficult period for Mrs H, particularly regarding clarity on arrears information and credit file reporting. While American Express had already taken some steps to remedy the situation (writing off the balance, removing markers, and paying £550), the ombudsman considered the overall service fell short of what was fair and reasonable. The ombudsman rejected claims for consequential losses (medical costs) as there was insufficient evidence these were solely caused by American Express' actions and no evidence American Express was aware such costs would be incurred. The ombudsman upheld the Investigator's recommendation of an additional £400 compensation as fair and proportionate.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website