Upheld: Service failures generally complaint against Clydesdale Bank Plc trading as Virgin Money

Decision detail

Summary

Mr S complained that he could not use Virgin Money's telephone banking to make a payment over £3,000 to his landlord. Virgin Money suggested alternatives (mobile app, online banking, standing order) but did not initially offer the token option that would enable larger online payments. Mr S had to split the payment into smaller amounts over several days, damaging his impression with his new landlord. Virgin eventually provided the token and paid £100 compensation, later offering a further £100. The ombudsman upheld the complaint, finding Virgin should have offered the token immediately, but considered the £200 total compensation fair and reasonable as suitable alternatives were available.

The Ombudsman's reasoning

The ombudsman agreed with the investigator that while Mr S's preferred method (telephone banking) was unavailable, Virgin Money did offer suitable alternatives including online banking with a token and standing orders. However, the ombudsman found that Virgin Money should have offered the token option immediately when the problem first arose, which constituted a service failing. The ombudsman rejected Mr S's characterisation of a 'total lockout' as the issue only affected this specific payment via telephone banking, not other account functions. The ombudsman considered the £200 total compensation (£100 initial plus £100 additional) to be fair and reasonable for the distress and inconvenience caused.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website