Not upheld: Card / payment disputes complaint against Vanquis Bank Limited
Financial Ombudsman decision DRN-6424536 of 2026-06-25T00:00:00+00:00. Card / payment disputes complaint against Vanquis Bank Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6424536 |
|---|---|
| Decision date | 2026-06-25T00:00:00+00:00 |
| Firm | Vanquis Bank Limited |
| Product | Credit card |
| Claim type | Card / payment disputes |
| Outcome | Not upheld |
| Remedy | VB must pay Mr O £150 in compensation for distress and inconvenience caused by delays in claims handling. VB may deduct any amount already paid. |
Summary
Mr O complained about Vanquis Bank's handling of his refund claim for unsafe accommodation booked through a third-party agent and paid via a BNPL agreement with provider T using his VB credit card. VB declined the section 75 claim, reasoning that since the accommodation was paid for by T rather than directly by VB's credit card, it was not liable. The ombudsman upheld VB's decision on the substantive claim but found VB had caused unreasonable delays in claims handling. The ombudsman increased compensation from £75 to £150 for the service failures but rejected Mr O's claim for a refund.
The Ombudsman's reasoning
For a valid section 75 claim, a debtor-creditor-supplier agreement must exist. In this case, the DCS agreement was between Mr O, VB, and T regarding the BNPL agreement, not the accommodation itself. Since the accommodation was paid for by T (not VB's credit card directly), VB was not liable under section 75. Similarly, no reasonable prospect of chargeback success existed because the merchant was T, not the accommodation provider. However, VB's delays in claims handling warranted compensation.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Vanquis Bank Limited, all decisions | 1,458 | 20% |
| Card / payment disputes, all decisions | 14,309 | 19% |
| Credit card, all decisions | 26,052 | 22% |
Source
Read the original decision on the Financial Ombudsman Service website