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

Decision detail

Summary

Mrs C complained about trailing interest applied to her credit card account after she made a payment in September 2025 intended to clear the balance, and about poor customer service when Virgin Money subsequently contacted her about arrears. Virgin Money explained the interest was applied in line with account terms and conditions, and offered £50 compensation for customer service issues. The ombudsman upheld the complaint in part, directing Virgin Money to pay the £50 compensation and remove adverse credit file information, but rejected the request for interest refund as the terms clearly explained how interest would accrue. The ombudsman found Virgin Money acted fairly overall, particularly once it became aware of Mrs C's vulnerabilities.

The Ombudsman's reasoning

The ombudsman found that Virgin Money acted fairly in applying trailing interest in accordance with the account terms and conditions, which clearly explained how interest would be calculated. While Mrs C may not have been informed about residual interest at the point of payment, the information came from a different bank rather than Virgin Money. Virgin Money took reasonable steps to notify Mrs C of the balance through statements and subsequent arrears notices. The ombudsman acknowledged Mrs C's vulnerabilities but found no persuasive evidence Virgin Money was aware of these circumstances prior to the complaint events, and once aware, Virgin Money took appropriate steps. The £50 compensation for customer service issues and removal of adverse credit information was deemed fair.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website