Not upheld: Card / payment disputes complaint against Starling Bank Limited

Decision detail

Summary

Mrs N purchased tickets for an outdoor event that was cancelled and rescheduled due to bad weather. When she was unable to attend the rescheduled event and was refused a refund, she asked Starling Bank to recover her £207.70 through chargeback. Starling raised the chargeback but the merchant defended the claim, providing evidence that the tickets were delivered and the event took place on the rescheduled date in accordance with terms allowing for weather postponement. Starling decided not to pursue the dispute further, and Mrs N complained. The ombudsman found that Starling fairly applied the chargeback rules and reasonably concluded that the card scheme provider would unlikely find in Mrs N's favour at arbitration, therefore not upholding the complaint.

The Ombudsman's reasoning

The ombudsman considered whether Starling fairly applied the Mastercard chargeback rules in deciding not to pursue the dispute further. While Starling fairly raised the initial chargeback under 'Goods or Services Not Provided', the merchant's defence demonstrated that the tickets were provided to Mrs N and the event did take place on the rescheduled date in accordance with the merchant's terms allowing for postponement due to poor weather. The ombudsman concluded that Starling reasonably considered what the card scheme provider would likely decide at arbitration and determined it was unlikely the card scheme provider would find in Mrs N's favour given the merchant's evidence and the applicable rules. The ombudsman noted that chargeback is not a legal right and does not apply statutory consumer protections in the way Mrs N expected, and that the framework is strict and does not cover every situation between a consumer and merchant.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website