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

Decision detail

Summary

Miss A complained that NatWest improperly handled her refund claim for a hotel room booked on a credit card, which she said was not fit for purpose due to light entering despite blackout blinds. The ombudsman considered both chargeback and Section 75 Consumer Credit Act claims. While the hotel attempted to resolve the issue and moved Miss A to another room, the ombudsman found no reasonable prospect of successful recovery through chargeback under card scheme rules, as the accommodation was substantially received and used. For Section 75, the ombudsman found insufficient evidence of misrepresentation or breach of contract, as the hotel did not guarantee complete blackout conditions and some light ingress alone does not establish defective blinds. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman considered both chargeback and Section 75 claims. For chargeback, card scheme rules do not compensate for dissatisfaction or quality issues where services have been substantially received and used. The photographs and hotel's attempts to resolve the matter did not demonstrate a reasonable prospect of successful recovery through chargeback. For Section 75, while technical requirements may not have been met due to use of an agent, the ombudsman assumed S75 could apply but found insufficient evidence of either misrepresentation or breach of contract. The room was provided and used for the full stay, the hotel did not guarantee complete blackout conditions, and some light ingress alone does not establish defective blinds or breach of contract. The hotel's attempts to help and move the guest do not constitute admission of liability.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website