Not upheld: failure to automatically refund transaction fees complaint against ZILCH TECHNOLOGY LIMITED trading as Zilch

Decision detail

Summary

Miss U complained that Z failed to automatically refund transaction fees when the underlying transactions were refunded by merchants. Z did not uphold the complaint initially but agreed to refund the fees and provide £50 compensation, though the compensation was paid as account credit rather than to her bank account. The ombudsman found that Z's terms and FAQs clearly stated fees were not automatically refundable and that customers must request refunds, so Z did not create an expectation of automatic refunds. The ombudsman concluded that Z's response was fair and reasonable, and that the £50 compensation was appropriate. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Z's terms and FAQs did not create an expectation of automatic fee refunds. Z's decision to refund the fees despite the customer not meeting the stated criteria (merchant cancellation or failure to complete) was deemed fair and reasonable. The £50 compensation was considered appropriate. Regarding the payment method issue, the ombudsman noted that Z gave Miss U a reasonable opportunity to choose the payment method, she did not respond promptly, and she subsequently benefited from the account credit by using it.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website