Virgin Money delay in distribution/dividend payment

Flying_Magpie

Hi all, I intend to follow up at the end of this week, marking 3 weeks since I submitted a complaint. Radio silence so far. 

Flying_Magpie

Just wondering whether anyone has heard anything from VM formally or otherwise. It’s 4 weeks since I sent a complaint, I’ve been told the wait for a response is up to 8 weeks. Thanks

eskbanker

Flying_Magpie said:

Just wondering whether anyone has heard anything from VM formally or otherwise. It’s 4 weeks since I sent a complaint, I’ve been told the wait for a response is up to 8 weeks. Thanks

The FCA's DISP provisions require that financial institutions resolve complaints within eight weeks, so that often ends up being seen as a target rather than a deadline....

https://www.handbook.fca.org.uk/handbook/DISP/1/6.html

HerbUK1

Interestingly we’re having a similar problem - our bond and gilt income is paid on 1 June and 1 December into our bank account- mine was received on time but my wife’s wasn’t. On contacting them we were told it now takes 7 to 10 working days which is something new to us.
After a few days we contacted them again and were told it would be looked into and then later in the day we got a communication document via their app saying they now wanted identification for my wife - bearing in mind we have had bond and gilt fund investments with them for over 20 years with no changes to names addresses or bank details which we found alarming, however we sent screenshots of her bank statement, drivers license and passport only to get another message to say a screenshot of the bank statement was not acceptable - subsequent sent a pdf copy and put in a formal complaint to Virgin.
However we’re still not getting anywhere with them and my wife’s bi annual bond income is still not paid and we’re unable to establish what the issue is and what’s triggered the issue- Virgin just seem to avoid giving any details apart from they’re looking into it - How long does it take?
Is anyone else having a similar problem and what should my next step be - Complain to the Financial Ombudsman?

HerbUK1

Just had a communication via the app from them saying identity verification cleared so rung Virgin just now to enquire when exactly the money will be transferred only to be told that now there’s a technical issue delaying payment that’s being dealt with but no firm indication of when we will be paid!!!!!!

However, we paid money into our funds to buy more units in early June and there were no issues in taking our money or Identification issues when investing money at around the same time with them so there clearly is an issue of some sorts at Virgin regarding payments out that they don’t want to expand on and  unfortunately we’re left still waiting and hoping.

We’re uncertain as to what the next steps to take but will see if anything comes through from them over the next day or so- it’s definitely causing alarm bells to ring as far as we are concerned in terms of the security of our underlying investments with them regardless of the income they should be generating!

 I’m wondering if it’s just a few of us having issues or wherever there’s something more serious at play!

Flying_Magpie

HerbUK1 said:

Interestingly we’re having a similar problem - our bond and gilt income is paid on 1 June and 1 December into our bank account- mine was received on time but my wife’s wasn’t. On contacting them we were told it now takes 7 to 10 working days which is something new to us.
After a few days we contacted them again and were told it would be looked into and then later in the day we got a communication document via their app saying they now wanted identification for my wife - bearing in mind we have had bond and gilt fund investments with them for over 20 years with no changes to names addresses or bank details which we found alarming, however we sent screenshots of her bank statement, drivers license and passport only to get another message to say a screenshot of the bank statement was not acceptable - subsequent sent a pdf copy and put in a formal complaint to Virgin.
However we’re still not getting anywhere with them and my wife’s bi annual bond income is still not paid and we’re unable to establish what the issue is and what’s triggered the issue- Virgin just seem to avoid giving any details apart from they’re looking into it - How long does it take?
Is anyone else having a similar problem and what should my next step be - Complain to the Financial Ombudsman?

Similar experience to others who were waiting for income with another ISA fund - the income arrived 15 days late in that case. I would log a complaint with Virgin, but await a response before escalation to the Ombudsman - expect to play the long game though VM have up to 8 weeks to respond

Elicopter

Complain as soon as you can as you can then complain to the ombudsman after you get the final outcome or 8 weeks passes if earlier.

I have been trying to get the money from my late mother’s Virgin Stocks & Shares ISA account since February! and it has been a series of delays and then since April they have been referring to this technical error. They have all the documents they need. They told me in May that that investment had been sold. But that was untrue and now we are back to “technical error”. No one in the call centre can help. No bereavement team exists. I am glad I have now contacted the Ombudsman and wish I did it sooner. No idea when the money will be paid. No idea what else to do - hoping the Ombudsman can help.

Flying_Magpie

Was an explanation ever forthcoming from VM for others on this forum? for the delay in paying dividend. I lodged a complaint on the17th May but other than a no reply acknowledgment email, I have never had any response. Is it worth going to the ombudsman or will they not be interested? What do people think? 

Kokoraki

I just found that Virgin Money have finally responded to my complaint and paid me £75 in compensation, which was credited into my current account on 17th July 2024.  I quote the relevant part of the explanation below for your info.

"I realise the allocation and payment of your recent distribution to your ISA has caused concern. When

we changed our administration system earlier this year that changed the relationship with the fund

manager and that has affected the allocation and investment of your distributions. On our old system the

distributions were allocated and invested on the payment date. On our new system the distributions have

to be paid over from the fund manager and then allocated and invested, which means this now takes a

little longer.

For the Virgin Money Index Tracking Trust the payment date was 15 May 2024 and the monies

should’ve been allocated to your account no later than 22 May 2024. But we had a technical issue

processing that and the monies weren’t added until 24 May 2024. That has also now been paid out and I

trust you have safely received that.

Moving forward

Under the revised process for distributions these should be allocated and paid in no more than ten

working days from the distribution date.

Thanks for bringing this issue to my attention. To say sorry, I’m crediting your bank account with £75.00."

I hope you all received a similar response.

Flying_Magpie

Thanks Kokoraki - I’ve never received a response, but I will follow up next week with VM