Not upheld: declined transactions / card blocking complaint against Clydesdale Bank Plc trading as Virgin Money

Decision detail

Summary

Mr F complained that Virgin Money declined two credit card transactions while he was on holiday abroad, leaving him temporarily unable to use his card. Virgin explained that the card had been blocked as a security measure and that Mr F could reactivate it by using an ATM, which proved straightforward. Virgin acknowledged poor phone handling and paid £50 compensation. The ombudsman found that Virgin's terms and conditions permitted it to block transactions for security reasons and that the firm had acted fairly. The £50 compensation for poor phone service was deemed appropriate, and no further remedy was warranted.

The Ombudsman's reasoning

The ombudsman found that Virgin's terms and conditions explicitly state that the firm does not guarantee individual transactions will be processed and that it is entitled to decide whether to allow each payment based on risk assessment. The ombudsman accepted that Virgin has a legitimate interest in protecting against fraudulent transactions and that blocking a card based on suspicious activity patterns is a reasonable security measure. While acknowledging the inconvenience caused to Mr F, the ombudsman concluded that Virgin acted fairly in blocking the transactions and that the £50 compensation for poor phone handling was appropriate and fair.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website