Not upheld: Goods and services under S75 complaint against American Express Services Europe Limited (AESEL)

Decision detail

Summary

Mr T paid approximately £860 for accommodation through a booking agent using his AESEL credit card but was unable to check in and had to stay elsewhere. He claimed a refund of approximately £640 under the no-show policy, but the merchant V defended the chargeback by relying on its terms allowing penalty charges up to 100% for no-shows and cancellations after check-in time. AESEL did not pursue the chargeback further and rejected Mr T's complaint. The ombudsman found that while the technical criteria for a section 75 claim may have been satisfied, there was no clear breach of contract because Mr T did not attempt to cancel until after the first day's booking, making the merchant's penalty charge terms applicable. The ombudsman concluded that AESEL handled the claim reasonably and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that while the technical criteria for a section 75 claim may have been met, there was no clear breach of contract because it was not established that Mr T was entitled to the refund he claimed. The evidence indicated Mr T had not followed instructions to gain access and did not attempt to cancel until after the first day's booking, making V's penalty charge terms applicable. The ombudsman noted the difficulty in determining the facts without court powers and relied on the balance of probabilities, concluding that AESEL's handling of the chargeback and complaint was reasonable given the circumstances and the merchant's defence.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website