Not upheld: refund request - Section 75 claim and chargeback handling complaint against Santander UK Plc

Decision detail

Summary

Mr H purchased software for approximately £700 via Santander credit card for a mentorship programme. After the supplier ceased trading, Mr H requested a refund claiming misrepresentation, alleging the software was advertised as exclusive when cheaper alternatives existed. Santander declined both a Section 75 claim and did not attempt a chargeback. The ombudsman found Santander treated Mr H fairly because he provided no persuasive evidence of false statements before purchase, evidence of alternatives was only provided after the claim process, and any chargeback would have lacked reasonable prospect of success without expert documentation. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Santander fairly declined the Section 75 claim because Mr H failed to provide persuasive evidence of a false statement made by the supplier before purchase, and did not demonstrate that any misrepresentation induced him into the contract. The ombudsman noted that evidence from alternative suppliers was only provided after the claim process and therefore could not be considered. Regarding chargeback, while a suitable reason code existed, the ombudsman concluded the chargeback would likely have been unsuccessful without expert evidence supporting the misrepresentation claim, and Mr H had not provided such evidence to Santander.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website