Partially upheld: payment processing error and failure to apply payment; inadequate communication regarding third-party payment restrictions complaint against American Express Services Europe Limited

Decision detail

Summary

Mrs J's daughter, Mrs D, attempted to make a bank transfer of £107.48 in December 2022 to clear Mrs J's American Express credit card balance after being advised by AmEx that this was the appropriate method. The payment was not applied to the account and AmEx subsequently stated they do not accept third-party payments. The funds remained unresolved for six months until June 2023 when AmEx identified them in a suspense account and returned them. When Mrs J complained in May 2025, AmEx offered only £25 compensation. The ombudsman upheld the complaint, finding this insufficient given Mrs J's vulnerability and the prolonged uncertainty, and ordered an additional £100 compensation.

The Ombudsman's reasoning

The ombudsman found that although Mrs D shielded Mrs J from much of the practical impact by handling the payment and pursuing resolution, Mrs J experienced ongoing uncertainty about her finances and whether the payment had been correctly received. Given Mrs J's personal circumstances (she was unwell and reliant on others), this uncertainty would reasonably have caused her worry and distress. The ombudsman determined that AmEx's initial £25 gesture did not adequately reflect the impact on Mrs J, particularly considering the months-long delay in resolving the issue and the lack of clear information about third-party payment restrictions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website