Not upheld: chargeback handling and Section 75 Consumer Credit Act claim assessment complaint against Clydesdale Bank Plc trading as Virgin Money
Financial Ombudsman decision DRN-6312877 of 2026-05-19T00:00:00+00:00. chargeback handling and Section 75 Consumer Credit Act claim assessment complaint against Clydesdale Bank Plc trading as Virgin Money. Outcome: Not upheld.
Decision detail
| Reference | DRN-6312877 |
|---|---|
| Decision date | 2026-05-19T00:00:00+00:00 |
| Firm | Clydesdale Bank Plc trading as Virgin Money |
| Product | credit card |
| Claim type | chargeback handling and Section 75 Consumer Credit Act claim assessment |
| Outcome | Not upheld |
| Remedy | Virgin Money has already credited £200 to Mr B's credit card account to reflect customer service failures. The ombudsman declined to order additional compensation but reminded Virgin Money of its obligations to treat Mr B with reasonable forbearance regarding his account balance and any other circumstances requiring support. |
Summary
Mr B purchased a £4,300 bracelet from a US online merchant using his Virgin Money credit card in March 2025, with payment resubmitted in May 2025 due to a technical issue. Mr B claimed non-receipt despite tracking information showing delivery to his UK address. Virgin Money raised a chargeback, received merchant evidence of shipping and delivery, requested further information from Mr B by 3 September 2025, and closed the claim when Mr B did not respond. Virgin Money also rejected a Section 75 CCA claim, concluding sufficient evidence supported delivery. The ombudsman found Virgin Money reasonably handled both the chargeback and Section 75 claim based on the available evidence, though acknowledged customer service failures including missed callbacks and premature collection letters. Virgin Money's £200 compensation was deemed adequate for these service issues.
The Ombudsman's reasoning
The ombudsman applied the balance of probabilities standard, finding that Virgin Money reasonably concluded the parcel was delivered to Mr B's address based on the complete tracking journey from US to UK, appropriate parcel weight, and the fact that the postage service used does not typically include signature or photo confirmation. The ombudsman noted that delivery to the address on the order form, rather than direct hand-to-hand delivery, satisfies the implied contractual term under the Consumer Rights Act 2015. The ombudsman found Virgin Money fairly applied chargeback rules and was not obligated to act as Mr B's advocate. Regarding customer service failures (missed callbacks and premature collection letters), the ombudsman considered the £200 compensation already offered to be proportionate.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Clydesdale Bank Plc trading as Virgin Money, all decisions | 82 | 22% |
Source
Read the original decision on the Financial Ombudsman Service website