Not upheld: failure to process Section 75 claim and chargeback complaint against National Westminster Bank Public Limited Company (NatWest)

Decision detail

Summary

Miss E purchased a vacuum for £299 through retailer C in June 2024 using her NatWest credit card, though her partner placed the order and his name appeared on the invoice. When the vacuum malfunctioned and the retailer and manufacturer refused accountability, Miss E contacted NatWest in February 2025 to claim under Section 75 of the Consumer Credit Act. NatWest declined the claim, citing the absence of a debtor-creditor-supplier agreement since Miss E was not the contracting party. The ombudsman upheld NatWest's decision, finding that the contractual relationship was between C and Miss E's partner, not Miss E, and that any chargeback attempt would have been time-barred under the 120-day rule.

The Ombudsman's reasoning

The ombudsman found that NatWest correctly applied Section 75 criteria by determining no valid debtor-creditor-supplier agreement existed, as the contract was between C and Miss E's partner, not Miss E. Regarding chargeback, although NatWest could have attempted one, it would have been unsuccessful as Miss E's claim was time-barred under the 120-day rule, having first contacted NatWest in February 2025, more than 120 days after the 29 June 2024 delivery date.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website