Not upheld: chargeback handling and refund dispute complaint against J.P. Morgan Europe Limited trading as Chase

Decision detail

Summary

Mr O complained that Chase acted unfairly by not refunding a hotel booking payment of £327 after he experienced poor conditions (mould and dust) that made his family sick. The hotel offered a partial refund of £104, which Mr O rejected and requested a full refund. Chase declined to pursue a chargeback but awarded £50 for distress and inconvenience. The ombudsman found Chase acted fairly because the evidence of defect would have been difficult to prove, Mr O had not raised concerns during his stay, the hotel had already adjusted the price, and any chargeback would likely have been unsuccessful under Mastercard rules. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Chase acted fairly in not pursuing a chargeback because: (1) the evidence of defect (mould and dust causing illness) would have been difficult to prove; (2) Mr O did not raise concerns with the hotel during his stay, weakening any chargeback claim; (3) the hotel had already adjusted the price by offering a £104 refund, which under Mastercard rules would undermine a chargeback for 'service not as described'; (4) Mr O had used the full accommodation for the agreed period; and (5) even if pursued, the chargeback would likely have been unsuccessful. The £50 compensation was reasonable given Chase's reasonable handling of the claim.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website