Upheld: misinformation regarding disputed transaction claim status; chargeback handling; Section 75 claim assessment complaint against Nationwide Building Society

Decision detail

Summary

Mr L complained to Nationwide Building Society about its handling of a disputed transaction claim for a hotel booking made via credit card. Nationwide raised a chargeback claim which was ultimately unsuccessful, but a representative incorrectly informed Mr L that the dispute had been settled in his favour, leading Mr L to make alternative holiday arrangements using the refunded amount. When the chargeback was subsequently declined and the refund had to be recovered, Mr L suffered considerable distress and inconvenience. The ombudsman found that while Nationwide's chargeback and Section 75 claim decisions were reasonable given the hotel's non-refundable booking terms, the misinformation provided by the firm warranted compensation of £500 for the distress and inconvenience caused.

The Ombudsman's reasoning

The ombudsman found that while Nationwide's handling of the chargeback claim itself was reasonable (given the non-refundable terms of the booking), the firm's provision of incorrect information about the claim's status caused Mr L considerable distress and significant inconvenience. Although Mr L likely would have made alternative arrangements regardless due to his pre-existing concerns about the hotel, the unexpected reversal of the outcome approximately one month after being told it was successful caused substantial upset and required Mr L to review his finances and re-engage with Nationwide.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website