Not upheld: alleged scam and fraud; chargeback handling complaint against HSBC UK Bank Plc

Decision detail

Summary

Ms M paid £3,974.44 to Company I for visa consultancy services to emigrate to Country A but became concerned when she received no proof of submission or visa updates and saw negative online reviews. She requested HSBC to investigate and process chargebacks, which HSBC did, but the card scheme provider upheld the merchant's defence based on evidence of agreed terms and service rendered. The ombudsman found insufficient evidence of a scam, noting that while fees were high and progress was lacking, there was also legitimate evidence of service provision and the payment pattern did not suggest fraud. HSBC's chargeback efforts were appropriate and the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found insufficient evidence to establish that a scam had occurred. While there were concerning online reviews and Ms M's concerns about lack of progress, there was also positive evidence including Company I's responses to reviews, contract details, invoices, and the card scheme provider's finding that the merchant had evidence of agreed terms and service rendered. The fees, while high, were not unrealistic for visa consultancy services. Without confirmation of a scam, HSBC could not be held responsible for reimbursement. Additionally, even if a scam were established, the payment pattern (relatively low amounts spread over time with an established payee) would not have triggered HSBC's fraud monitoring obligations.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website