Not upheld: misadvice regarding payment status and removal of promotional interest rate complaint against Clydesdale Bank Plc trading as Virgin Money

Decision detail

Summary

Ms B complained that Virgin Money misadvised her on 7 July 2025 by stating her credit card account was up to date when it was actually in arrears, and that this led to the removal of her 0% promotional interest rate. Ms B had attempted a payment on 27 June 2025 that failed, and when Virgin incorrectly told her the account was current, she did not make any payment in July 2025. The ombudsman found that the promotional rate would have been lost regardless due to Ms B's failure to pay in July, and that Ms B should have realised the account was not up to date given that her attempted payment had been refunded to her bank. Virgin's offer of an interest refund, £50 compensation, and reinstatement of the promotional rate when arrears are cleared was deemed fair and reasonable, and the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman concluded that even if Virgin had correctly advised Ms B on 7 July 2025, the promotional rate would have been lost when no payment was made by 24 July 2025. Ms B knew her attempted payment on 27 June had failed and the money was refunded to her bank, so she should have realised the account was not up to date despite Virgin's misadvice. The promotional rate required all payments to be made on time, and Ms B failed to make any payment in July 2025. Therefore, the situation Ms B now finds herself in is the same as she would have been in regardless of Virgin's error. Virgin's offer to refund interest and reinstate the promotional rate when arrears are cleared puts her back in the position she would have been in.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website