Not upheld: Account administration errors complaint against Clydesdale Bank Plc trading as Virgin Money

Decision detail

Summary

Mr G complained to the FOS about how Virgin Money processed overpayments on his £8,000 fixed sum loan and the poor customer service he received, particularly regarding inconsistent information and delays in providing audio statements as a reasonable adjustment for his visual impairment. Virgin acknowledged service failures and offered £195 compensation. The ombudsman found that Virgin's overpayment process, while complex, was properly applied and actually benefited Mr G through backdated interest reductions, and that the £195 compensation was fair and reasonable. The complaint was not upheld, with no additional remedy ordered.

The Ombudsman's reasoning

The ombudsman found that Virgin's overpayment process, while potentially convoluted, was properly applied and actually benefited Mr G through interest reductions. The backdating of PES Credits and combination of multiple overpayments into single credits meant Mr G received greater interest savings than if each overpayment had been applied individually. Regarding service failures, the £195 compensation was assessed as fair and reasonable in line with the FOS's published approach to compensation awards. The ombudsman clarified that forensic examination of interest calculations is outside FOS expertise, and complaint handling falls outside FOS jurisdiction.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website