Not upheld: refund claim - alleged breach of contract and unsatisfactory quality complaint against American Express Services Europe Limited

Decision detail

Summary

Ms R purchased a TV for £559.20 on her Amex credit card in October 2020. Around four to five years later, the TV screen failed and S's repair agent confirmed the LCD panel had failed under normal use but did not identify an inherent fault. S refused to repair it free of charge as it was outside the 12-month warranty. Ms R claimed a refund under Section 75 of the Consumer Credit Act 1974, but Amex declined and offered a goodwill credit of £95 instead. The ombudsman found no breach of contract or misrepresentation as the repair report did not establish an inherent manufacturing fault, the item was very old, and Ms R had not met the burden of proving the fault existed at purchase. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found no breach of contract or misrepresentation by S. While the TV failed after four to five years, the repair agent did not identify an inherent manufacturing fault, which would be necessary to establish unsatisfactory quality under the Consumer Rights Act 2015. The burden of proof lay with Ms R to demonstrate the fault existed at time of purchase, particularly given the age of the item. The 12-month warranty had long expired when Ms R first complained. Amex's goodwill credit of £95 was reasonable and reflected industry guidelines. A chargeback claim would have been out of time under scheme rules.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website