Not upheld: chargeback handling and dispute resolution complaint against Monzo Bank Limited

Decision detail

Summary

Mr A complained that Monzo failed to raise chargebacks for two transactions: a £120 AirPods purchase that was not received, and a £237.45 iPad screen repair that allegedly resulted in device malfunction. Monzo refunded the AirPods with a £100 excess and declined to pursue a chargeback for the iPad repair, later offering £100 additional payment which Mr A accepted. The ombudsman upheld Monzo's decision not to pursue the iPad chargeback, finding insufficient evidence that the repair was defective, and determined that Monzo acted reasonably in its handling of both matters.

The Ombudsman's reasoning

The ombudsman found that while Monzo is not obliged to raise a chargeback, it should attempt one where there is reasonable prospect of success. For the iPad repair, the specific service paid for (screen replacement) was completed. Although Mr A believes the repair was defective, there is insufficient evidence to establish when the damage occurred or that it was caused by the repair itself. The manifestation of problems after the repair does not alone demonstrate defective work. The ombudsman concluded that a chargeback based on defective service would not have had reasonable prospect of success under applicable Mastercard reason codes. Additionally, Mr A's Consumer Rights Act 2015 rights apply to his contract with the repair company, not to Monzo, and he does not benefit from section 75 protection as he used a debit card.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website