Not upheld: failed ATM withdrawal and incorrect account balance information complaint against Clydesdale Bank PLC trading as Virgin Money

Decision detail

Summary

Mr A complained that Clydesdale Bank PLC (trading as Virgin Money) failed to process an ATM withdrawal of £250 on 29 July 2025 and provided incorrect information about his account balance, causing him to overspend by approximately £1,000. Virgin Money investigated, provided temporary refund, then re-debited the amount after ATM owner confirmed successful transaction completion, and paid £150 compensation for the balance misinformation. The ombudsman upheld Virgin Money's position, finding technical evidence conclusively demonstrated the ATM withdrawal was successful and the £150 compensation was fair and reasonable under FOS guidelines for a single larger mistake causing inconvenience over a few weeks.

The Ombudsman's reasoning

The ombudsman found that Virgin Money provided sufficient technical evidence from the ATM owner demonstrating the withdrawal was completed successfully, including journal roll records showing correct cash dispensing, no discrepancies in machine balancing, and no evidence of machine malfunction. Regarding compensation, the ombudsman applied FOS guidelines and determined that a single larger mistake resolved within a few weeks causing some inconvenience and loss of expectation fell within the £100-£300 bracket rather than the £750-£1,500 bracket Mr A sought. The ombudsman noted Mr A had access to his app and could have verified his actual balance, and that asking Virgin Money to refund the £1,000 difference would essentially require writing off genuine transactions for which Mr A received the benefit.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website