Upheld: Goods and services under S75 complaint against American Express Services Europe Limited trading as American Express
Financial Ombudsman decision DRN-6291922 of 2026-06-17T00:00:00+00:00. Goods and services under S75 complaint against American Express Services Europe Limited trading as American Express. Outcome: Upheld.
Decision detail
| Reference | DRN-6291922 |
|---|---|
| Decision date | 2026-06-17T00:00:00+00:00 |
| Firm | American Express Services Europe Limited trading as American Express |
| Product | Credit card |
| Claim type | Goods and services under S75 |
| Outcome | Upheld |
| Remedy | Amex must refund £146.70 to Mr S's credit card account; add 8% per year simple interest to this amount from the date the claim was raised until settlement; add 8% per year simple interest to the £293.40 already paid from the date the claim was raised until the date it was paid; and reimburse the cost of the expert report upon receipt of the invoice. |
Summary
Mr S purchased a coffee machine for £489 using his Amex credit card in November 2023. Approximately one year later, the machine developed a fault and the manufacturer's two attempted collections via courier failed. Mr S requested Amex's help under Section 75 of the Consumer Credit Act 1974. Amex initially offered only a 60% refund (£293.40) as a gesture of goodwill, but after Mr S provided an independent expert report confirming an inherent fault, the investigator recommended a 90% refund plus interest and expert report costs. The ombudsman upheld the complaint, finding Amex's initial offer unfair and agreeing that Mr S had the final right to reject the goods under the Consumer Rights Act 2015, making the revised settlement offer fair and reasonable.
The Ombudsman's reasoning
The ombudsman found that Amex's initial 60% refund offer was unfair because once the independent expert report confirmed an inherent fault and the manufacturer failed to repair or collect the machine, Mr S had the final right to reject the goods under the Consumer Rights Act 2015. The ombudsman agreed with the investigator that a 10% deduction for approximately one year's use was reasonable, resulting in a 90% refund. The ombudsman rejected Mr S's request for additional compensation for distress and inconvenience, finding that Amex had not caused unnecessary delays and was reasonable in requesting evidence of the fault. The revised offer with 8% simple interest on the outstanding amount and reimbursement of the expert report costs puts Mr S in a fair financial position.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| American Express Services Europe Limited trading as American Express, all decisions | 5 | 20% |
| Goods and services under S75, all decisions | 19,872 | 36% |
| Credit card, all decisions | 26,052 | 22% |
Source
Read the original decision on the Financial Ombudsman Service website