Not upheld: receiver appointment procedure, notice requirements, fee charges, payment crediting complaint against Clydesdale Bank Plc trading as Virgin Money

Decision detail

Summary

Mr W complained that Virgin Money appointed receivers to his Buy To Let property without notice, charged excessive legal fees, and failed to credit rent payments to his mortgage. Virgin had sent warning letters in March and April 2025 and attempted multiple phone calls, though Mr W claimed he did not receive notice until May 2025. The ombudsman found that Virgin's notice procedures were adequate, that all rent payments had been properly credited to the mortgage, and that legal fees were permitted under the mortgage terms. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Virgin provided adequate notice of receiver appointment through written letters and attempted phone calls, and that it was reasonable for Virgin to rely on standard mail delivery without requiring recorded delivery. The ombudsman verified that all rent payments claimed by Mr W had been properly credited to his mortgage account, contrary to his assertion. The ombudsman confirmed that legal fees were permitted under the mortgage terms and that Virgin had waived additional costs. The ombudsman determined that the incorrect date of birth issue was Mr W's responsibility since Virgin had requested documentation in 2019 to correct it and Mr W had not provided it.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website