Not upheld: Section 75 claim handling - alleged faulty goods complaint against American Express Services Europe Limited

Decision detail

Summary

Ms C purchased a tumble dryer for £200 on her Amex credit card which proved faulty upon first use, displaying an error code, making loud noise, and emitting a burning smell. She requested a full refund before returning the goods, but the supplier offered to collect the item free of charge and provide a full refund within five working days of collection. Ms C rejected this offer and submitted a Section 75 claim to Amex, which Amex declined to uphold. The ombudsman found that while a potential breach of the Consumer Rights Act may have occurred, the supplier's offer constituted a fair and reasonable remedy that complied with applicable law, and therefore Amex did not act unfairly in declining to intervene at that stage.

The Ombudsman's reasoning

The ombudsman found that while there may have been a breach of an implied term under the Consumer Rights Act (goods should be of satisfactory quality), a reasonable remedy was already offered by the supplier. Under the CRA, the supplier's duty to refund and the consumer's duty to make goods available for collection run coherently together. Since the supplier offered to collect the goods free of charge and provide a full refund, and the supplier would be responsible for the goods once in its possession, Amex did not need to step in at that time. The ombudsman noted that if the supplier failed to refund or collect after the goods were made available, or if Ms C was unhappy with the refund, Amex could still assist under Section 75.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website