Not upheld: chargeback dispute - failure to recover payment complaint against Bank of Scotland plc (trading as Halifax)

Decision detail

Summary

Miss K purchased a car in December 2022 and contacted Halifax in November 2024 requesting a chargeback due to issues with the vehicle. Halifax declined, citing the dispute was raised outside the Visa scheme's required timeframes (120 days standard, up to 540 days maximum). Miss K complained that Halifax should have pursued the chargeback and should have informed her of the timeframes. The ombudsman found Halifax acted fairly, as chargebacks are governed by card scheme rules rather than bank discretion, and Miss K's dispute was clearly outside the permitted timeframes. Although acknowledging service could have been better, the ombudsman found Halifax's apology sufficient and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman emphasised that chargebacks are governed by card scheme rules, not by the bank or the FOS. The evidence showed Miss K raised her dispute outside both the 120-day and 540-day timeframes required by Visa rules. Although Miss K claimed to have contacted Halifax within 120 days, no supporting evidence was provided. Without such evidence, the ombudsman could not conclude Halifax made a mistake. The ombudsman rejected Miss K's argument that Halifax should have proactively informed customers of chargeback timeframes, noting these are complex scheme rules set externally, not a consumer right or legal requirement. The ombudsman acknowledged service could have been better but found Halifax's apology sufficient remedy.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website