Upheld: improper handling of chargeback claim and provision of inaccurate information about dispute rights complaint against Barclays Bank UK PLC trading as Tesco Bank

Decision detail

Summary

Ms A purchased defective clothing items from a retailer using her Tesco Bank Mastercard. When the retailer refused a refund, she asked Tesco to help via chargeback. Tesco incorrectly stated it could not raise a chargeback for quality disputes and did not give Ms A an opportunity to gather evidence. The ombudsman found that Mastercard rules do permit such disputes and that Tesco's inaccurate information prevented Ms A from pursuing her claim within applicable timescales, leaving her time-barred. Although the ultimate success of the chargeback was uncertain, Tesco failed to meet reasonable expectations by not providing accurate information and a fair opportunity to present her case. The ombudsman upheld the complaint and ordered £100 compensation.

The Ombudsman's reasoning

The ombudsman found that Tesco provided inaccurate information when it stated it could not raise a chargeback for quality of goods disputes, as Mastercard rules do contain a condition for defective goods. Although the evidence provided by Ms A was insufficient to guarantee the chargeback would have succeeded, she was not given a fair opportunity by Tesco to gather and present evidence at an earlier stage. The inaccurate information prevented Ms A from pursuing her claim within the applicable timescales, and she is now time-barred. This failure to meet reasonable expectations warrants compensation for avoidable inconvenience.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website