Upheld: Complaints handling failures complaint against Shop Direct Finance Company Limited trading as Very

Decision detail

Summary

Mr K purchased an item from Shop Direct that arrived damaged. After returning it, Shop Direct agreed to provide a discount on re-order, but applied part of the discount incorrectly. Mr K had to contact Shop Direct multiple times to get the error corrected, and Shop Direct acknowledged its customer service was unsatisfactory. The ombudsman upheld the complaint, finding that the error and poor service caused Mr K distress and inconvenience, and ordered Shop Direct to pay total compensation of £50 (an additional £20 above the £30 already paid).

The Ombudsman's reasoning

The ombudsman determined that the complaint fell within FOS jurisdiction as it related to ancillary matters connected to regulated credit activities. The core issue was Shop Direct's error in applying the discount and the inconvenience caused to Mr K in pursuing resolution through multiple contacts. While compensation for time spent pursuing complaints is not normally awarded, the distress and inconvenience caused in this case warranted compensation. The ombudsman agreed with the investigator's assessment that £50 total compensation was fair and reasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website