Not upheld: disputed charges and liability for returned goods on credit account complaint against Next Retail Limited

Decision detail

Summary

Mrs P complained that Next Retail Limited unfairly held her liable for approximately £700 worth of goods she claimed to have returned via an instore locker in January 2025. Next's investigation concluded the goods had not been returned and added £1,053 to her credit account, later reducing this to £659 after identifying procedural errors. The ombudsman determined that while it could not assess Next's actions as a retailer regarding whether goods were actually returned, it could consider whether Next fairly pursued payment through the regulated credit account. Finding that Next acted in accordance with the account's terms and conditions, the ombudsman did not uphold the complaint and confirmed Next's offer of £40 compensation should be paid.

The Ombudsman's reasoning

The ombudsman determined that the Financial Ombudsman Service could only consider Next's actions as a regulated finance provider, not as a retailer. The dispute about whether goods were actually returned is a retail matter outside the ombudsman's jurisdiction. However, regarding the credit account itself, Next acted fairly in accordance with the account's terms and conditions when adding the disputed amounts and charging investigation fees. The ombudsman was satisfied that Next's actions in pursuing payment through the credit account were fair and reasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website