Upheld: Service failures generally complaint against Clydesdale Bank Plc trading as Virgin Money
Financial Ombudsman decision DRN-6344651 of 2026-06-23T00:00:00+00:00. Service failures generally complaint against Clydesdale Bank Plc trading as Virgin Money. Outcome: Upheld.
Decision detail
| Reference | DRN-6344651 |
|---|---|
| Decision date | 2026-06-23T00:00:00+00:00 |
| Firm | Clydesdale Bank Plc trading as Virgin Money |
| Product | Current account |
| Claim type | Service failures generally |
| Outcome | Upheld |
| Remedy | Virgin Money to pay Miss D a total of £250 compensation (£100 already paid, with a further £150 to be paid). This compensation is to acknowledge the failures in claims handling and the exacerbation of distress caused by Virgin Money's poor treatment during the claims process. |
Summary
Miss D complained that Clydesdale Bank Plc trading as Virgin Money failed to safeguard her after she made payments as a result of financial abuse during a 4-5 year abusive relationship. While the ombudsman found that Virgin Money was not liable for reimbursing the payments made under coercion, as there are no automatic reimbursement schemes for such payments, the complaint was upheld regarding poor claims handling. The ombudsman found that Virgin Money exacerbated Miss D's distress by passing her between departments without a handover, requiring her to repeat traumatic information multiple times, charging for statements, and failing to adequately explain its position or why offered evidence was not needed. The ombudsman upheld the complaint and determined that Virgin Money's offer of £250 total compensation was fair to acknowledge the failures in claims handling.
The Ombudsman's reasoning
The ombudsman found that while Virgin Money was not liable for reimbursing payments made under coercion (as there are no automatic reimbursement schemes for such payments and the payments were not so suspicious as to warrant intervention), the bank failed in its claims handling process. The ombudsman determined that Miss D should have been given a single point of contact from the outset rather than being passed between departments, forcing her to retell traumatic events multiple times. The ombudsman also found that Virgin Money prioritized process over doing the right thing (such as charging for statements and requiring a return visit), and failed to adequately explain to Miss D why the bank was not liable or why certain evidence was not needed. While acknowledging that the real cause of distress was Miss D's ex-partner, the ombudsman concluded that Virgin Money exacerbated her distress through poor claims handling.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Clydesdale Bank Plc trading as Virgin Money, all decisions | 96 | 21% |
| Service failures generally, all decisions | 34,193 | 32% |
| Current account, all decisions | 52,014 | 19% |
Source
Read the original decision on the Financial Ombudsman Service website