Upheld: fraud claim mishandling and delayed investigation complaint against American Express Services Europe Limited

Decision detail

Summary

Mrs P disputed a £175.31 credit card payment as fraudulent on 18 August 2025. American Express's investigation process was inefficient, with the fraud team referral delayed and Mrs P receiving unclear information, requiring her to contact the firm repeatedly over 4.5 months. Although the payment was ultimately refunded as fraudulent on 11 December 2025, Mrs P was not informed until 29 December 2025. Mrs P complained about regulatory non-compliance and sought compensation beyond the £100 offered. The ombudsman upheld the complaint but found £100 fair compensation for the inconvenience, as the ombudsman's role is to award reasonable compensation rather than impose regulatory penalties.

The Ombudsman's reasoning

The ombudsman found that American Express's investigation took longer than expected and Mrs P was not given clear information about progress, causing frustration and inconvenience through repeated contact. However, the ombudsman's role is not to impose fines for regulatory breaches but to assess fair compensation for the impact on the customer. The £100 compensation is appropriate for the inconvenience caused, and refunding the annual card charge would be unfair as it covers other services Mrs P could have used.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website