Not upheld: unfair credit file reporting and late payment markers complaint against Clydesdale Bank Plc trading as Virgin Money

Decision detail

Summary

Mr W complained that Clydesdale Bank Plc trading as Virgin Money unfairly recorded late payment markers on his credit file following missed payments on his Virgin Atlantic Reward+ credit card. After a £160 annual fee was charged in August 2024, Mr W paid only £40 of the £160 minimum payment due by 27 August 2024 and made no further payments. In an earlier complaint, Virgin Money agreed to refund the annual fee, clear the balance, close the account, and remove the default marker, but did not agree to remove the late payment markers. The ombudsman found the late payment markers accurately reflected Mr W's actual payment history and that Virgin Money was contractually entitled to report missed payments to credit reference agencies. Although Virgin Money provided incorrect advice in September 2024, this occurred after the payment deadline had passed and did not cause the initial late payment marker. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that the late payment markers accurately reflected Mr W's actual payment history. While Virgin Money provided misinformation in September 2024, this occurred after the 27 August 2024 payment deadline had already passed and the account was already in arrears. The ombudsman was not persuaded that Mr W had previously requested account closure or been promised fee refunds before the annual fee was applied, as no evidence of such calls was provided. The earlier settlement removing the default was a pragmatic mediated resolution rather than an admission of wrongdoing, and did not include agreement to remove late payment markers.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website