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

Decision detail

Summary

Ms K purchased two hotel rooms through an online travel agent for a family of five, paying approximately £3,391 total. After booking, she learned one room could accommodate her family and sought a full refund of the second room's cost (£1,687). The online travel agent applied an 80% cancellation fee, resulting in only a partial refund. Ms K requested Amex to pursue a Section 75 claim and chargeback, but Amex declined both. The ombudsman found no misrepresentation or breach of contract by the online travel agent, as hotel messages confirmed the room type accommodated only four people, and the cancellation terms were clearly stated. Amex's handling of both the Section 75 claim and chargeback was deemed fair and reasonable.

The Ombudsman's reasoning

The ombudsman found that while Amex could have investigated the Section 75 claim in more detail, the claim would not have succeeded on the merits. The evidence provided by Ms K (hotel messages) actually contradicted her assertion that one room could fit five people—the messages confirmed the room type accommodated four people. No misrepresentation or breach of contract by the online travel agent was established, as the occupancy information appeared accurate and came from the hotel supplier. The online travel agent's terms and conditions were properly agreed to and followed, including the cancellation fee structure. Therefore, Amex acted fairly in declining both the Section 75 claim and the chargeback.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website