Not upheld: Goods and services under S75 complaint against AMERICAN EXPRESS SERVICES EUROPE LIMITED

Decision detail

Summary

Mr B paid for roofing works via American Express credit card (partial payment) and bank transfer, based on a quotation estimating 2 working days for 2 roofers at £3,120. The work was completed by one roofer in less than a day, leading Mr B to claim he was overcharged. After Mr B's complaint, the supplier voluntarily reduced the price by £600. Mr B then raised a section 75 claim against American Express alleging misrepresentation and breach of contract. American Express declined the claim. The ombudsman found the quotation's labour estimate was expressly described as an estimate rather than a guarantee, and the discrepancy between estimate and actual work did not establish misrepresentation or breach of contract. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that the quotation's statement regarding labour was expressly described as an estimate rather than a binding statement of fact. The significant discrepancy between the estimate and actual work completed does not, by itself, demonstrate the estimate was false when made or that T lacked a reasonable basis for providing it. The voluntary price reduction by T does not indicate the original estimate was false, as businesses may offer discounts for various reasons including goodwill. No evidence supported a breach of contract claim, as the agreed works were carried out. Different traders may legitimately charge different prices for the same work.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website