Upheld: Failure to register Lasting Power of Attorney and inadequate support for account management by attorneys complaint against Clydesdale Bank Plc (trading as Virgin Money)

Decision detail

Summary

Mrs C registered a Lasting Power of Attorney in March 2024 naming her two daughters as attorneys. When her daughters discovered a Virgin Atlantic credit card account in April 2025 and provided Clydesdale with a code to register the LPA, Clydesdale failed to act on the request. The account had already been sold to a debt purchaser in June 2024 with a £69 balance. The ombudsman upheld Mrs C's complaint, finding Clydesdale's service was deficient, but rejected the daughters' request for higher compensation (£1,000-£4,000) and air miles, as they were not eligible complainants and could not have prevented the debt sale. The ombudsman ordered Clydesdale to pay Mrs C £300 compensation for distress and inconvenience.

The Ombudsman's reasoning

Clydesdale failed to engage with the request to register the LPA when the code was provided, constituting poor service. However, the ombudsman found that Mrs C's daughters were not eligible complainants under FOS rules and therefore could not be awarded compensation for their personal distress. The ombudsman rejected claims for air miles compensation as the debt sale occurred before the daughters were aware of the account's existence, making it impossible for them to have prevented the sale. The ombudsman also noted that Mrs C was not reliant on the credit card and the upset appeared to relate to impact on time with her daughters rather than loss of the card itself. The £300 award was deemed fair compensation for distress and inconvenience caused to Mrs C.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website