Not upheld: account management - failure to receive maturity notification and automatic account conversion complaint against Clydesdale Bank Plc trading as Virgin Money

Decision detail

Summary

Mr N complained that his one-year fixed rate ISA with Virgin Money was closed at maturity without his knowledge, and the funds were placed in a holding account. He claimed he did not receive any correspondence about the maturity and was unaware he needed to reinvest the funds. Virgin Money stated it sent two notification emails (one 10-14 days before maturity and a reminder 6-7 days later) in accordance with its terms and conditions, and the emails did not bounce back. The ombudsman found that Virgin Money acted fairly and reasonably by following its own procedures and terms, which clearly outlined the maturity process. Although Mr N raised concerns about relying on email communication alone, the ombudsman could only compare Virgin Money's actions to its own standards. The complaint was not upheld, and no further award was made beyond the £15 goodwill gesture already paid.

The Ombudsman's reasoning

The ombudsman found that Virgin Money's actions were in line with its own terms and conditions, which clearly stated the account would become a variable rate Cash ISA after the fixed rate period and that the customer would be written to before the end of the fixed rate period. The evidence showed that two emails were sent (not one as Mr N suggested) and there was no evidence of a problem with Virgin Money's email system or that the emails bounced back. On balance, it appeared likely the emails were sent. The ombudsman noted that while Mr N raised concerns about relying on a single unsecured communication method, Virgin Money's actions could only be compared to its own standards, not those of other banks. The goodwill gesture of £15 was considered appropriate.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website