MBNA / Lloyds Banking Group - Treating unfairly on Chargeback and Section 75

cloudxplorer

Fellow moneysavingexperts, I have an ongoing issue with MBNA / Lloyds Banking Group who are not handling my transaction dispute properly. I hope your experience and knowledge can give me some guidance on this.

I have purchased a sofa from Harveys in store. The sofa was not as described (by salesman) as well as faulty item. Harveys acknowledged the "not as described" part but refused to acknowledge the "faulty item" bit based on their technician report.

I decided to return the item for full refund based on "not as described" claim". However been dragging on their heels to do anything about it, not responding emails, empty promises on phone.

I approached credit card provided MBNA for dispute who initially asked me to solve it with merchant for 15 days. In that time, I managed to get the merchant to acknowledge "not as described" liability and returns authorization (verbally over phone and in store by manager).

After 15 days passed, MBNA agreed to engage but haven't done anything for past 12 days. They refused to apply for Mastercard Chargeback saying verbal "not as described" is not valid scenario for Mastercard Chargeback.

They then passed on the case to Section 75 case worker. The caseworker is refusing to give any confirmed timeline. They also told me that since the merchant has admitted liability and accept return, they will not refund me. They will instead chase merchant only till merchant pay back to me.

I am disappointed to say the least that MBNA is trying to escape their responsibility by giving me various reasons. I raised a complaint, which was upheld with "feedback given" and "£100 gag compensation" thereby sweeping serious failures under the carpet. But this does not solve the problem and I am still waiting for money from the merchant, they may take 6 months and I will endup doing all the legwork while MBNA / Lloyds happily sitting warming their chairs.

Please help.

BoGoF

So has the sofa actually been returned?

cloudxplorer

No not yet. The sofa is still to be collected in last week of August.

The merchant's call center agreed returns authorization on 25th July. I visited the store 2 days ago to question lack of communication regarding collection and served them notice before court action.

Then next day they called me to agree a date for collection of the sofa.

Highland76

Then why not wait until they have collected the sofa and then give them a week or so to process the refund? By involving MBNA before you've even returned the goods, you're unnecessarily complicating matters. S75 is normally used as a last resort when the retailer refuses to refund you.

cloudxplorer

I have not accepted the "£100 gag compensation". I would rather get a resolution on the sofa refund with MBNA actually working on the case rather than washing their hands off the dispute with a small bribe to customer.

BoGoF

I can understand their reluctance to do a chargeback/S75 whilst you still have the goods in your posession.

BoGoF

Calling things 'gag compensation' and bribes does not help your case. I totally get the banks point of view, you need to resolve with merchant first and neither the merchant nor bank or going to refund you till the goods are back with the merchant.

cloudxplorer

BoGoF wrote: »

Calling things 'gag compensation' and bribes does not help your case. I totally get the banks point of view, you need to resolve with merchant first and neither the merchant nor bank or going to refund you till the goods are back with the merchant.

Highland76 wrote: »

Then why not wait until they have collected the sofa and then give them a week or so to process the refund? By involving MBNA before you've even returned the goods, you're unnecessarily complicating matters. S75 is normally used as a last resort when the retailer refuses to refund you.

I appreciate you viewpoint. However, when I involved MBNA, 15 days trying to resolve directly with the merchant had passed. MBNA advised me to write email to merchant specifically saying "item is ready to collect from home". They advised that irrespective of the merchant replies or not, irrespective of the merchant collects item or not, after 14 days from that email a charge back will be applied. This is advised recorded on MBNA disputes call.

Full 3 weeks passed after that email and the since returns authorization was agreed. Now MBNA trying find their way out!

It was only two days ago the store responded following my 14-day notice before court action, by that time MBNA had not even contacted the merchant for more than 2 weeks they have the case with them to be worked.

MBNA was wrong in saying Mastercard Chageback does not support "not as sold" claim. I checked Mastercard guidance and they do support it. MBNA acknowledged they failed to apply dispute claim under Mastercard Chargeback route. The "£100 compensation" appears gag in my view so that MBNA does not need to spend any more time investigating the complaint itself.

I am looking for way to make MBNA stand to their commitments and protect customer's interest. This is not fraudulent claim, this is genuine claim with clear liability. I can only imagine how thing can go with MBNA if the claim liability is in dispute.

Highland76

But MBNA should/will only step in once the retailer refuses to help you any further. Since the retailer has now agreed to collect the sofa at the end of Aug, perhaps give them a chance to refund you (after they've received it) irrespective of what MBNA may have told you in the past? You're unnecessarily complicating things here...

BoGoF

The merchant would, rightly, have challenged the chargeback as you still had the goods.

cloudxplorer

Sorry, its not me holding goods. Its the merchant not wanting to reverse a confirmed sale thereby dragging their feet.

The bank on the other hand should have correctly applied Mastercard Chargeback and it does apply irrespective of merchant takes effort to collect goods or not giving them 45 days to act. This is where MBNA has failed.

The merchant needs a stimulus to act, the Mastercard Chargeback should have been exactly that. However I had to use notice before court action to get them moving forward.

I am seriously worried the poor advise given out on MSE who should have known better.