Not upheld: Card / payment disputes complaint against Lloyds Bank PLC

Decision detail

Summary

Miss B purchased a £2,340 online course using a Lloyds credit card and requested a refund within 14 days after accessing course materials. Q refused the refund citing Miss B's access to materials during the cooling-off period, which their terms stated would forfeit refund rights. Miss B complained to Lloyds about their handling of her chargeback and Section 75 claims. The ombudsman found that Lloyds correctly declined both claims because Q's terms were clearly disclosed and Miss B had accessed the materials during the cancellation period, meaning she was no longer entitled to a refund. While Lloyds had administrative deficiencies, these were addressed with £200 compensation, and the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Lloyds correctly declined the chargeback claim because the Mastercard 'Credit Not Processed' code requirements were not met—Q had not promised a refund but failed to process it, and the refund policy was disclosed to Miss B. Regarding the Section 75 claim, while Miss B made her refund request within 14 days, she accessed the course materials during the cooling-off period, and Q's terms clearly stated this would forfeit refund rights. The ombudsman was not persuaded that Miss B accessed the materials due to uncertainty about course content, noting her initial refund request cited childcare issues rather than concerns about the sale conduct, and she had viewed a positive web class beforehand. The terms and conditions were made available before material access occurred.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website