Not upheld: Credit file / adverse marker disputes complaint against Clydesdale Bank plc trading as Virgin Money

Decision detail

Summary

Miss G complained that Virgin Money processed money transfers that, due to fees and interest, caused her to exceed her credit limit, which was then reported to credit agencies and led to her mortgage application being declined. Virgin acknowledged the error occurred because its system failed to restrict transactions to 95% of available credit as intended, and it amended her credit file and paid £150 compensation. The ombudsman found this resolution fair and reasonable, and upheld Virgin's position that further compensation for the mortgage decline could not be justified without written confirmation from the lender that the decline was solely attributable to Virgin's reporting, which Miss G could not obtain.

The Ombudsman's reasoning

The ombudsman found that Virgin appropriately acknowledged its error and took reasonable steps to remedy it by amending the credit file, apologising, and paying £150 compensation. The ombudsman considered this resolution fair and in line with what the service would expect. Regarding the additional financial loss from the mortgage decline, the ombudsman found Virgin's request for written confirmation from the lender that the decline was solely attributable to Virgin's reporting was reasonable, as multiple factors affect mortgage approvals. Since Miss G could not provide such confirmation (her lender only provided a general response), the ombudsman found Virgin had not treated her unfairly by declining further compensation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website