Lawyer to sue over rejected card

A leading solicitor is threatening to sue chargecard company Diners Club because he says he was publicly humiliated when his card was rejected for a purchase.

Paul Gordon-Saker, 57, has lodged a writ claiming his reputation was damaged when he tried to buy a £380 dress for his wife.

He claims the word "declined" that appeared on his charge slip libelled him at a boutique in New Bond Street. Mr Gordon-Saker says the incident also painted him as a man with insufficient funds with whom shops should have no dealings.

If the case sets a legal precedent it could lead to thousands of other consumers suing for alleged errors. Mr Gordon-Saker said yesterday that Diners Club, the original chargecard company, had said "sorry" for cancelling his card by error and promised to send him another.

But he still wanted nothing more to do with the company and says that when he tried to cancel his membership they claimed he owed £120 in unpaid fees.

He said yesterday the money was hardly a lot but when he refused to pay the amount the card company allegedly blacklisted his name with two credit reference agencies.

Mr Gordon-Saker is a partner with the Stephenson Harwood law firm in the City. Diners Club could not be contacted for comment.

Financial Ombudsman Services spokesman David Cresswell said: "I think it's inevitable that mistakes will happen but it is very rare for them to end up in court.

"We like to encourage people to come to us to resolve them and put them back in the position they were in before they were given the bad advice or a mistake had been made".