Not upheld: arrears reporting and lack of clarity regarding credit file impact complaint against Clydesdale Bank Plc trading as Virgin Money

Decision detail

Summary

Mr P complained to the Financial Ombudsman about Virgin Money's handling of his credit card account after his circumstances changed in 2024. Mr P agreed to a payment plan with Virgin Money but was unhappy that arrears were recorded on his credit file and that he was not adequately informed this would happen. Mr P also complained about a failed direct debit setup. The ombudsman found that Virgin Money accurately reported Mr P's payment history, as he was already in arrears when the payment plan was agreed, and that the £50 compensation already paid was reasonable. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Virgin Money accurately reported Mr P's payment history to credit reference agencies, as Mr P was already in arrears when the payment plan was agreed. While Virgin Money could have provided clearer explanation about how existing arrears would continue to be reported on the credit file, the ombudsman was satisfied that Virgin Money had agreed to a fair and affordable payment plan based on Mr P's circumstances. The ombudsman noted that credit files are intended to reflect accurate payment history, and therefore Virgin Money was not obligated to amend its reporting. The £50 compensation already paid was deemed reasonable acknowledgment of the lack of clarity.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website