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

Decision detail

Summary

Mr H complained that Virgin Money mis-handled his credit card account by unfairly applying interest after he attempted to cancel it and settle the balance on 3 February 2026. He claimed he was unable to reach Virgin Money by phone on two occasions and requested a final statement by post. The ombudsman found that Virgin Money was entitled to charge interest under the contract terms and that the unsuccessful phone calls were not the firm's fault—one was due to Mr H's phone network problems and the other to his failure to pass security checks. Virgin Money provided alternative access via its app and attempted to contact Mr H on 5 February 2026, which Mr H did not reciprocate. The complaint was not upheld, and the ombudsman found Virgin Money's £25 goodwill payment was sufficient.

The Ombudsman's reasoning

The ombudsman found that Mr H entered into a credit agreement requiring monthly payments with interest accruing on late payments. Virgin Money was entitled to charge interest in accordance with the contract terms. The unsuccessful phone calls on 3 February 2026 were not due to Virgin Money's fault—one was caused by Mr H's phone network problems and the other by Mr H failing security checks. Virgin Money provided alternative access via its app and attempted to contact Mr H on 5 February 2026, which Mr H did not reciprocate. The ombudsman found no evidence that Mr H was unfairly prevented from settling the account.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website