Not upheld: dispute handling - chargeback and Section 75 claim complaint against National Westminster Bank Public Limited Company

Decision detail

Summary

Mrs S complained about NW's handling of a dispute regarding flights purchased through a travel agent at a higher price than available elsewhere. NW considered both chargeback and Section 75 Consumer Credit Act protections. The ombudsman found that NW acted fairly in pursuing the chargeback to arbitration and in concluding there was no breach of contract or misrepresentation by the supplier. The case involved a complex booking with three flights, and the ombudsman noted that price variations between retailers are common and may reflect different service levels. Without the sales call recording and specific industry guidance on markup disclosure, the ombudsman found it was not unfair for NW to reject the claim. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found this was a 'bad bargain' rather than an incorrect price or breach of contract. While price differences between retailers are common and may reflect different service levels, simply charging more than competitors does not demonstrate lack of reasonable care and skill. The ombudsman noted that without the sales call recording, it was difficult to assess what was communicated, and without specific industry guidance on markup disclosure, it was not unfair for NW to conclude there was no breach of contract or misrepresentation. The evidence of marketing materials and claims about the 'best deal' were insufficient to constitute false statements of fact.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website