Not upheld: chargeback handling and refund claims complaint against Monzo Bank Limited

Decision detail

Summary

Ms T complained that Monzo Bank Limited failed to adequately handle chargeback claims for five payments made to a training course supplier between August 2023 and January 2024. Ms T had cancelled the course and sought refunds, arguing Monzo used the wrong chargeback code, provided insufficient guidance, and should have pursued later claims that remained within Mastercard's time limits. The ombudsman found that Ms T's cancellation requests were made after the supplier's 14-day cooling off period had expired and there was insufficient evidence that the supplier was obliged to provide a refund under Mastercard's scheme rules. Accordingly, the ombudsman concluded Monzo acted fairly in declining to progress the chargebacks and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Monzo acted reasonably in concluding the chargeback claims could not be progressed successfully. The key issue was that Ms T's cancellation requests were made after the contractual 14-day cooling off period had expired, and there was insufficient evidence that R was obliged to provide a refund under Mastercard's scheme rules. The ombudsman rejected arguments that Monzo should have used a different chargeback code, provided more guidance, or pursued claims that remained within time limits, as none of these would have changed the outcome without evidence of a refund entitlement.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website