Not upheld: balance transfer processing and application of fraud controls complaint against Clydesdale Bank plc (trading as Virgin Money)

Decision detail

Summary

Mr F complained about Virgin Money's handling of a balance transfer request submitted in January 2025, which was flagged as potentially fraudulent. When Virgin Money's fraud team asked him to confirm the amount, Mr F was unable to do so, and the transfer was not processed at that time. Mr F argued that Virgin Money's handling was unreasonable due to lack of flexibility and practical difficulties in meeting the requirements within time constraints. The ombudsman found that Virgin Money's fraud controls were appropriately applied, the requirement to confirm the amount was fair and reasonable, and there was no evidence of financial loss, therefore not upholding the complaint.

The Ombudsman's reasoning

The ombudsman found that Virgin Money's fraud controls were appropriately triggered and that requiring Mr F to confirm the balance transfer amount was a fair and reasonable security measure. Since Mr F was unable to provide confirmation, it was reasonable for Virgin Money not to process the transfer at that time. The ombudsman found no evidence of financial loss and considered the inconvenience caused insufficient to warrant compensation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website