Not upheld: chargeback claim handling - refusal to progress claim complaint against Lloyds Bank PLC

Decision detail

Summary

Mr C purchased a computer for £1092.43 using a Lloyds debit card from an online marketplace and later sought to return it, citing that it was slower than another device and citing financial difficulties. When the seller refused the return, Mr C asked Lloyds to raise a chargeback claim under the 'Not as Described or Defective Merchandise' code. Lloyds declined the claim after the seller disputed it, noting that Mr C had retained possession of the computer and subsequently sold it to a third party. The ombudsman found insufficient evidence of a defect and determined there was no reasonable prospect of the chargeback succeeding, therefore not upholding the complaint.

The Ombudsman's reasoning

The ombudsman considered the relevant VISA chargeback code 'Not as Described or Defective Merchandise/Services' and found insufficient evidence that the computer was actually defective. While Mr C claimed the computer was slower than another device, this did not constitute sufficient evidence of a defect. Additionally, the fact that Mr C retained possession of the item and subsequently sold it to a third party undermined the chargeback claim. The ombudsman concluded there was no reasonable prospect of the chargeback succeeding, and therefore Lloyds acted fairly in declining it.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website