Nationwide faces surge in chargeback claims as customers report missing meal items

In the United Kingdom, Nationwide's chargeback unit based in Swindon is actively addressing customer claims related to missing items from orders. For example, a customer submitted a claim when his Indian takeaway meal arrived without poppadoms and samosas, which he had ordered and paid for. Jamie, a member of the 16-strong team, is responsible for collecting necessary information from the customer to strengthen the claim and will reach out for additional details such as receipts, delivery dates, and any attempts made to resolve the issue with the restaurant directly. He emphasizes the importance of providing complete information on the first submission as they only have one chance to submit the chargeback claim to the retailer. In addition to meal claims, the unit encounters various chargeback situations, like a customer who received gym clothes in the wrong color. Case representatives advise customers to document their claims thoroughly with photographs of any discrepancies, whether the item is the wrong size or damaged upon delivery. Furthermore, the customers who paid with credit cards and spent between £100 and £30,000 benefit from the legal protections offered under Section 75 of the Consumer Credit Act. This protection applies even if the item was only partially paid for as a deposit. The team also sees trends in claims, which can surge during certain periods, such as holidays or when a well-known retailer encounters financial difficulties. When chargeback claims do not meet the criteria, they are escalated to the Section 75 team, which evaluates each case individually. Unlike chargeback claims, Section 75 cases have extended periods for resolution, which can last several months or even years in more complex situations. If the merchant does not refund the money, Nationwide ensures that the buyer will still receive their funds. The unit takes proactive measures as soon as a claim is initiated by freezing the customer’s transaction on their credit card, thereby preventing monthly payments and interest accrual related to the disputed charge. Retailers are traditionally required to address issues reported within the first six months since purchase, with the burden of proof shifting to demonstrate that any item shown to be faulty was not so at the time of sale. As these claims present a real consumer protection issue, the work undertaken by Jamie and his team is vital in ensuring that customers receive appropriate restitution for their losses.