Not upheld: Account administration errors complaint against Vanquis Bank Limited

Decision detail

Summary

Mr S complained that Vanquis Bank increased his credit card interest rate from 38.5% to 58.5% without notifying him. Vanquis stated it had sent a Notice of Variation on 17 March 2025 and a reminder on 1 May 2025, giving Mr S the opportunity to opt out. Mr S denied receiving any notification and claimed he would have opted out had he been informed. The ombudsman reviewed the evidence and found that Vanquis sent the notification to the correct registered email address and complied with the contractual 30-day notice requirement. Although Mr S received confusing system-generated emails referencing an outdated interest rate, this did not invalidate the Notice of Variation or the application of the increased rate. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman was satisfied that Vanquis complied with the contractual requirement to provide 30 days' notice of the interest rate increase. The Notice of Variation was sent to the correct email address on 17 March 2025, and although Mr S claimed non-receipt, no evidence of error by Vanquis was found. The increased rate was correctly applied to the account in accordance with the terms and conditions. While system-generated emails contained outdated rate information causing confusion, this did not alter the validity of the Notice of Variation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website