Virgin Money have frozen my savings account

fiisch

I used to work in [STRIKE]fraud[/STRIKE] customer validation teams. As someone has mentioned, your account will have triggered a certain algorithm and they're conducting the mandatory "KYC" (Know Your Customer) and anti-money laundering checks, which is perfectly reasonable.

What is totally unreasonable is promising the account would be unfrozen in a certain timescale and then failing to deliver. I would focus your complaint on these grounds. If you're willing, offering to kill them with documentation (passport, driving licence, proof of address, wage slips etc.) to assist with their process should help get the whole thing moving.

Even if the account is unfrozen, I would be asking for compensation based on the false promises.

MrCarrot

Thanks for all your replies. I've heard nothing from Virgin, however I tried to login to the account today (I've been trying every day for the last 2 weeks) and it finally appears to be unfrozen and I can see the funds.


I know this thread might not be the best place to ask, however I want to move the money away from Virgin after this experience. Is there a better option than an ISA? The ISA is currently pulling in more than £1k interest a year so I'm guessing a regular savings account would incur tax on the interest.

codetown2

Definitely keep it in an ISA wrapper!

If you want some real interest from it, you could move it to an IF-ISA.
The easiest (and lowest risk) I know of is RateSetter, which should easily bring you 4% with the selection of an annual investment.

atush

Some isas allow P2P investments now.

but i'd be in equities (or at least multi asset funds) and not cash.

If you go the current account route, do factor in the newish savings allowance. You wont pay tax on all the income.

Alexland

codetown2 wrote: »

If you want some real interest from it, you could move it to an IF-ISA.
The easiest (and lowest risk) I know of is RateSetter, which should easily bring you 4% with the selection of an annual investment.

But P2P is still significantly higher risk than a Cash ISA. I was particularly unimpressed in how Ratesetter lent my £1k out to a single borrower (as the same time as they lent my wife's £1k out to presumably the same borrower). I know they have a central provision for bad debts but that might not be enough in adverse market conditions. Am just staying long enough for the intro bonus then reinvesting in S&S where I feel a lot more comfortable.

Alex

Grey_Critic

You might consult a financial adviser. You do not have to give them your money, you can simply pay for advice.