Not upheld: claim handling - chargeback and Section 75 Consumer Credit Act dispute complaint against American Express Services Europe Limited

Decision detail

Summary

Mrs K complained about Amex's handling of her claim for a full refund regarding a serviced apartment stay that fell short of expectations due to lack of advertised courtyard, dirty bedding, poor air quality, and noise. Amex raised a chargeback which was defended by the booking platform, and subsequently discontinued it. Amex also declined a Section 75 claim. The ombudsman found that Amex's discontinuation of the chargeback was fair as it had weak prospects of success under scheme rules, particularly given evidence Mrs K continued to use the apartment and had already received a 20% partial credit. While acknowledging potential breach of contract issues with the dirty blanket and air conditioner smell, the ombudsman concluded the partial credit already provided was broadly fair compensation and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Amex reasonably discontinued the chargeback because under the scheme rules, the merchant successfully demonstrated that services were used without cancellation and a correcting transaction (partial refund) had been made. Evidence showed Mrs K continued to use the apartment's facilities despite booking alternative accommodation, which weakened her chargeback claim. Regarding Section 75, while there may have been a breach of contract regarding the dirty blanket and potentially the air conditioner smell, Mrs K had already received approximately 20% credit which was broadly fair compensation given she continued to utilize the apartment and prevent its re-letting. The alleged misrepresentation regarding the courtyard view was not substantiated as the description was technically accurate, albeit not visually appealing as expected.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website