Not upheld: chargeback handling and dispute resolution complaint against Santander UK Plc

Decision detail

Summary

Mr M complained about Santander's handling of a chargeback claim for a holiday booked through a travel agent for his medically vulnerable mother. After reading negative reviews, Mr M contacted Santander requesting a refund, claiming the hotel was misrepresented. Santander opened a dispute but later declined to raise a chargeback. After the holiday, Mr M's mother experienced various issues including broken air conditioning, faulty locks, and a non-refunded deposit. The ombudsman found that Santander did not act unfairly because the chargeback scheme rules require evidence that the customer raised issues with the supplier and gave them an opportunity to remedy them, which was not demonstrated. The ombudsman upheld Santander's decision not to pursue the chargeback and found the £100 compensation already paid was appropriate.

The Ombudsman's reasoning

The ombudsman applied the Mastercard chargeback scheme rules to assess whether Santander acted fairly. The relevant rule was 'Goods or Services Were Either Not as Described or Defective'. For this rule to apply, the customer must demonstrate attempts were made to resolve issues with the supplier and that the supplier refused to adjust the price, repair, replace goods, or issue credit. The ombudsman found insufficient evidence that Mr M or his mother raised the issues with the hotel or travel agent during the stay, which is generally expected under chargeback rules. The ombudsman also noted limited evidence of misrepresentation at the point of booking. Without documented complaints to the supplier and their refusal to remedy the issues, the chargeback requirements were not met. The ombudsman acknowledged service issues in Santander's handling but found the £100 compensation already paid was fair and proportionate.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website