Upheld: account administration failure and credit file reporting accuracy complaint against Clydesdale Bank Plc trading as Virgin Money

Decision detail

Summary

Mr P complained about Virgin Money's handling of his credit card account administration after a direct debit was cancelled in June 2025 for an account not visible on the app. This led to missed payments between June and October 2025 and late payment markers on his credit file. Virgin Money failed to identify the third account when Mr P initially contacted it, but subsequently took reasonable steps to notify him of arrears. The ombudsman upheld the complaint in part, requiring Virgin Money to remove only the June 2025 late payment marker and pay £75 compensation, while retaining the accurate late payment entries for subsequent months when Virgin Money had properly notified Mr P of the arrears.

The Ombudsman's reasoning

While Virgin Money failed to identify the third account when Mr P contacted in June 2025, the ombudsman found that Mr P was aware of the account (held since 2022 with previous payments) and had an ongoing obligation to make payments. Virgin Money took reasonable steps to notify Mr P of arrears through statements, notices, and telephone contact. The late payment markers for July-October 2025 accurately reflected the actual status of the account, and Virgin Money's blocking of the account was in line with terms and conditions. The ombudsman upheld the complaint only regarding the June 2025 entry, as Virgin Money could have handled that initial contact better.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website