Partially upheld: Section 75 claim handling - satisfactory quality of goods and appropriate remedy calculation complaint against MBNA Limited
Financial Ombudsman decision DRN-6352026 of 2026-05-12T00:00:00+00:00. Section 75 claim handling - satisfactory quality of goods and appropriate remedy calculation complaint against MBNA Limited. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6352026 |
|---|---|
| Decision date | 2026-05-12T00:00:00+00:00 |
| Firm | MBNA Limited |
| Product | credit card |
| Claim type | Section 75 claim handling - satisfactory quality of goods and appropriate remedy calculation |
| Outcome | Partially upheld |
| Remedy | MBNA Limited must: (1) Pay Mr P £1,263.33 if F refunds £836.67, or £2,100 if F provides no refund, contingent on sofa collection within 12 weeks; (2) Assist with sofa collection at no charge if F cannot collect; (3) Refund the cost of the independent report plus 8% simple interest per annum from the date the report was paid until settlement date. |
Summary
Mr P purchased a £4,200 sofa in 2019 using his credit card. In September 2024, an independent inspection identified manufacturing defects including colour changes and other faults. After the furniture merchant's repair attempts and settlement offers proved unsatisfactory, Mr P made a Section 75 claim for full refund. MBNA proposed a 50% refund (£2,100) recognising approximately 5 years of usage. The ombudsman upheld the complaint in part, finding MBNA's 50% deduction was fair under the Consumer Rights Act 2015, but requiring MBNA to also refund the cost of the independent report plus 8% interest.
The Ombudsman's reasoning
The ombudsman found that MBNA fairly recognised a breach of contract had occurred due to unsatisfactory quality. The ombudsman considered that Section 24(8) of the Consumer Rights Act 2015 permits deductions for use when a consumer exercises the final right to reject goods after the initial 6-month period. Given Mr P had used the sofa for approximately 5 years and attempted repairs had been made, a 50% deduction based on a 10-year average sofa lifespan was within a reasonable range and not unfair. However, MBNA should refund the cost of the independent report since they relied on it in reaching their decision.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| MBNA Limited, all decisions | 3,866 | 28% |
Source
Read the original decision on the Financial Ombudsman Service website