Not upheld: excessive interest charges and multiple interest rate application complaint against Clydesdale Bank Plc trading as Virgin Money

Decision detail

Summary

Miss B complained to the Financial Ombudsman Service about interest charges on her Virgin Money credit card, claiming the interest was too high, she was struggling with payments, and she was unhappy about three different interest charges being applied. Virgin Money declined to uphold the complaint, explaining that the three charges related to purchases, balance transfers, and money transfers, all shown separately on statements. The ombudsman reviewed the terms and conditions, monthly statements from January to May 2025, and found no errors in how interest was calculated or applied. The ombudsman concluded that all charges were in line with the contractual terms and that Virgin Money had dealt with the complaint fairly, therefore not upholding the complaint.

The Ombudsman's reasoning

The ombudsman reviewed the terms and conditions which permitted variable interest rates with appropriate notice periods. The statements clearly showed the three separate interest charges for purchases, balance transfers, and money transfers. No error was found in the calculation or application of interest charges, and all charges were in accordance with the contractual terms. The ombudsman was satisfied that Virgin Money had acted fairly and had not breached its obligations.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website