Upheld: section 75 claim rejection; breach of contract; faulty goods complaint against AMERICAN EXPRESS SERVICES EUROPE LIMITED
Financial Ombudsman decision DRN-6294360 of 2026-04-16T00:00:00+00:00. section 75 claim rejection; breach of contract; faulty goods complaint against AMERICAN EXPRESS SERVICES EUROPE LIMITED. Outcome: Upheld.
Decision detail
| Reference | DRN-6294360 |
|---|---|
| Decision date | 2026-04-16T00:00:00+00:00 |
| Firm | AMERICAN EXPRESS SERVICES EUROPE LIMITED |
| Product | credit card |
| Claim type | section 75 claim rejection; breach of contract; faulty goods |
| Outcome | Upheld |
| Remedy | AESEL must: (1) cover the cost of a new replacement table once X provides evidence of purchase, without delay; (2) cover disposal costs of the damaged table if X chooses to dispose of it (or X may keep proceeds if she sells it); (3) pay £150 compensation to X. |
Summary
X purchased a dining table using an AESEL credit card which developed a manufacturing defect (large crack) five months after delivery. The merchant's technician confirmed repair was not viable, but the merchant refused to replace the table. AESEL rejected X's section 75 claim, arguing the merchant had not been given opportunity to repair. The ombudsman upheld the complaint, finding that since repair was impossible, replacement was the only available remedy under consumer law, and AESEL was jointly liable with the merchant for the breach of contract. AESEL was directed to reimburse the cost of a replacement table, cover disposal costs, and pay £150 compensation.
The Ombudsman's reasoning
The table developed a fault within six months of purchase, constituting a breach of contract. The merchant's own technician confirmed repair was impossible, making replacement the only available remedy under Consumer Rights Act section 23. As the merchant refused to replace the table, X was entitled to pursue a claim under section 75 against AESEL, which is jointly and severally liable with the supplier for breaches of contract. AESEL's rejection of the claim was therefore incorrect.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| AMERICAN EXPRESS SERVICES EUROPE LIMITED, all decisions | 1,319 | 22% |
Source
Read the original decision on the Financial Ombudsman Service website