Not upheld: faulty goods claim handling and chargeback dispute complaint against TSB Bank plc

Decision detail

Summary

Mrs D purchased a faulty car and paid approximately £6,300 via TSB credit card. After the seller's repair failed to resolve the fault, Mrs D sold the car at a loss rather than pursue further remedies with the seller. She then sought a refund from TSB via Section 75 claim and chargeback. TSB declined both, citing insufficient evidence that the repair had not resolved the defect and the car's unavailability for inspection. The ombudsman upheld TSB's decision, finding that while the car was faulty, the sale of the vehicle created an evidentiary gap that made it impossible to determine if TSB should remain liable, and Mrs D had alternative options she did not pursue.

The Ombudsman's reasoning

While the car was brand-new and faulty, constituting a breach of the implied term of satisfactory quality under the Consumer Rights Act, the critical issue was that the vehicle had been sold and was no longer available for inspection. This made it impossible to determine whether C's repair had resolved the original defect. Without establishing whether the breach was remedied, TSB could not fairly be held liable under Section 75. Similarly, for the chargeback, the inability to verify the repair's effectiveness meant there was insufficient evidence of a successful claim under Mastercard rules. Mrs D had alternative options available (requesting further inspection or seeking TSB's help before selling) that she did not pursue.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website