Not upheld: Card / payment disputes complaint against Clydesdale Bank Plc (trading as Virgin Money)

Decision detail

Summary

Mr V booked a pre-paid car hire abroad for 284.20 US dollars through business T using his Clydesdale Bank credit card. Upon arrival, he was informed the total cost would be 667.94 US dollars due to additional charges including optional extras (CDW and vehicle upgrade fees). Mr V declined T's partial refund offer and requested a full refund from CB, which was declined. The ombudsman found that T's booking form and terms clearly disclosed the non-refundable terms and optional extra charges, and that the cost increase was primarily due to optional extras Mr V could have declined rather than a breach of contract. CB acted fairly in declining both the chargeback and section 75 claims, and the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that the booking form clearly disclosed the non-refundable terms and that T's terms adequately set out the possibility of optional extra charges such as CDW and BCF. The primary cost increase (approximately 383.74 dollars) was attributable to optional extras that Mr V could have declined, rather than a breach of contract by T. The ombudsman concluded that CB was not obligated to raise a chargeback as T's offer of a partial refund would defeat any chargeback claim under Mastercard rules, and CB acted fairly in declining the section 75 claim as there was no clear breach of contract by T.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website