Not upheld: chargeback handling and dispute resolution complaint against Monzo Bank Limited

Decision detail

Summary

Mr J, a minor with an under 16's account at Monzo, purchased a jacket for £65.59 from supplier C which was never sent. Mrs J, acting on Mr J's behalf, requested a refund through Monzo's dispute process. Monzo raised a chargeback which C defended by claiming the amount had been refunded to an account held with them. Monzo then requested evidence from Mrs J to support re-raising the chargeback, but Mrs J did not provide the requested information by the deadline. The ombudsman found that Monzo's handling of the dispute was fair and reasonable, as the chargeback process was the only realistic recovery method available and Monzo's request for information was justified.

The Ombudsman's reasoning

The ombudsman determined that as Mr J paid for the order without using credit, the chargeback process was the only realistic way to recover the money. While chargebacks are good practice, they are not guaranteed and are decided by card scheme rules rather than the merits of the dispute. Monzo reasonably requested information to determine whether to re-raise the chargeback, and it was not unreasonable to set a deadline for this information. The ombudsman found that Monzo acted fairly by not continuing the chargeback when Mrs J failed to provide the requested information.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website