Not upheld: refund request handling - chargeback and Section 75 claim complaint against American Express Services Europe Limited (trading as American Express/AMEX)

Decision detail

Summary

Mr M purchased flooring for approximately £300 via AMEX credit card and paid approximately £70 separately for installation. After installation, he discovered the flooring was not level and complained to the supplier, who identified the issue as caused by a flawed subfloor. Mr M requested AMEX assist in obtaining a refund for both the flooring and installation costs. AMEX attempted a chargeback but declined to pursue it further, and also rejected a Section 75 claim on the grounds that installation was a separate contract not paid for with the credit card and there was no evidence of breach of contract. The ombudsman upheld AMEX's decision, finding that the flooring goods were not defective and the installation issues were not the supplier's responsibility, and that AMEX fairly considered both dispute resolution options available.

The Ombudsman's reasoning

The ombudsman found that AMEX fairly handled both the chargeback and Section 75 claim. For the Section 75 claim, the installation was a separate contract not paid for with the credit card, and there was no evidence of breach of contract or misrepresentation by the supplier regarding the goods purchased. The flooring itself was not defective; the issues arose from the subfloor and installation, neither of which the supplier was responsible for. The chargeback had no reasonable prospect of success for the same reasons. AMEX's customer service was also fair, as it promptly considered and explained its decisions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website