Not upheld: miscommunication regarding fraud refund promise and failure to manage customer expectations complaint against Clydesdale Bank plc, trading as Virgin Money

Decision detail

Summary

Ms L complained that Virgin Money failed to refund a disputed £2,500 online payment she claimed was fraudulent. An FOS investigator concluded in April 2024 that Ms L had authorised the transaction, and the complaint was closed. Ms L subsequently complained that Virgin Money managers had twice promised her a refund within five days, which was not delivered. Virgin Money apologised for this miscommunication in September 2025. The ombudsman declined to reconsider the original fraud claim and found that Virgin Money's apology was a fair and reasonable remedy for the miscommunication, without ordering further compensation or refund.

The Ombudsman's reasoning

The ombudsman confirmed that the original fraud claim could not be reconsidered as it had been closed in 2024 with no new evidence provided to warrant reopening. The complaint being considered was limited to Virgin Money's miscommunication about the refund promise. The ombudsman found that while Virgin Money should have managed expectations more realistically, an apology was a fair and reasonable remedy in this case, as refunds are not always appropriate when financial institutions believe customers authorised the transaction.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website