Upheld: failure to properly pursue chargeback request; poor handling of dispute complaint against TSB Bank plc

Decision detail

Summary

Mr K purchased goods from an overseas manufacturer and paid a shipping agent to deliver them. Upon delivery, 120 items were missing and 19 were damaged. When Mr K asked TSB to raise a chargeback, TSB initially refused citing the 120-day time limit, then agreed it should have raised one. The shipping agent defended the chargeback with evidence TSB later accepted was fraudulent. TSB offered £2,529.13 but then refused to pay, claiming the goods were insured. The ombudsman upheld the complaint, finding TSB should have pursued the chargeback more vigorously and that Mr K had no direct means of claiming from the insurer. TSB was ordered to pay £2,529.13 plus interest and £250 compensation.

The Ombudsman's reasoning

The ombudsman found that the core issue was whether the shipping agent delivered the service for which it was paid. Mr K had provided compelling evidence that not all items were delivered and that some were damaged. The ombudsman rejected TSB's reliance on Visa's chargeback rules requiring an insurance claim, finding that Mr K had no direct means of engaging with the insurer as the goods were insured by the merchant, not Mr K. The ombudsman concluded that the shipping agent failed to deliver the service and that Mr K should be repaid a portion of the shipping costs. The ombudsman used TSB's own offer of £2,529.13 as a fair compromise, as calculating the exact sum was difficult given items were of different sizes and values. The ombudsman also found that TSB's handling of the claim was confused and fell short of expected standards.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website