Upheld: account administration failure and service delay complaint against AMERICAN EXPRESS SERVICES EUROPE LIMITED

Decision detail

Summary

Mr M complained that AMEX failed to add the correct airline companion voucher to his credit card when he became eligible for it. AMEX initially rejected the complaint, but the voucher was eventually reissued during the FOS process. The ombudsman upheld the complaint, finding that AMEX had made clear administrative errors and failed to rectify them promptly. However, the ombudsman rejected Mr M's claims for additional fee refunds (as he continued using the card after he could have cancelled it) and rejected his hourly-rate-based compensation calculation. The ombudsman awarded £350 compensation for the distress and inconvenience caused by the administrative failure and the multiple contact attempts required to resolve the issue.

The Ombudsman's reasoning

The ombudsman found that AMEX made a clear mistake by not issuing the correct voucher to Mr M when he became eligible. Although the voucher was eventually reissued during the FOS process, AMEX failed to administer the account properly and took excessive time to rectify the error. However, the ombudsman rejected Mr M's claim for additional fee refunds because he continued using the card after the point he could have cancelled it, thereby benefiting from the card's use. The ombudsman also rejected the hourly rate calculation for compensation, as the FOS does not award compensation on this basis. The £350 compensation was deemed reasonable for the distress and inconvenience caused by the administrative failure and multiple contact attempts required.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website