Virgin Money card cancellation

MPescatore

Hello all

Curious about this. It's not outside of the T&Cs, I gather, but I received an email yesterday advising that my credit card was being cancelled, with immediate effect, as there hasn't been sufficient activity. That fits, as I haven't actually used it since applying for it ~ 3 years ago - it was intended as 'emergency use', and, fortunately, no such emergency has ever presented itself. My credit rating is higher than average, I have other active credit accounts, and my income remains at a level similar to previous years.

My question is this: 
As far as I'm aware, I received no notice this was about to happen. Is that usual?
The timing, during this outbreak uncertainty, is perhaps coincidental. However, I'm kind of curious as to whether this is happening more broadly as companies look to maybe cover themselves for the inevitable economic uncertainty. Especially having seen so much coverage of Branson applying for credit himself (although I'm assuming the various divisions of his empire are in some way distinct entities). Any insight into this out there?

Could be nothing, and completely regular. Just curious is all.

Thanks, and hope everyone is well.
M

[Deleted User]

It's not uncommon.

Lending criteria are tightening and it doesn't make sense for lenders to have masses of unused credit out there.

D3xt3r5L4b

MPescatore said:

Hello all

Curious about this. It's not outside of the T&Cs, I gather, but I received an email yesterday advising that my credit card was being cancelled, with immediate effect, as there hasn't been sufficient activity. That fits, as I haven't actually used it since applying for it ~ 3 years ago - it was intended as 'emergency use', and, fortunately, no such emergency has ever presented itself. My credit rating is higher than average, I have other active credit accounts, and my income remains at a level similar to previous years.

My question is this: 
As far as I'm aware, I received no notice this was about to happen. Is that usual?
The timing, during this outbreak uncertainty, is perhaps coincidental. However, I'm kind of curious as to whether this is happening more broadly as companies look to maybe cover themselves for the inevitable economic uncertainty. Especially having seen so much coverage of Branson applying for credit himself (although I'm assuming the various divisions of his empire are in some way distinct entities). Any insight into this out there?

Could be nothing, and completely regular. Just curious is all.

Thanks, and hope everyone is well.
M

You did receive notice - in your own words above you said you received an email from
them advising of the closure - that’s your notice. 

Oh and you’re credit rating isn’t “higher than average” since you don’t know each lenders lending criteria, so you cannot possibly “rate yourself”. 

cymruchris

As the old saying goes - if you dont use it, you lose it. If you'd put your supermarket shopping on it every month, and then paid the balance in full (no interest), you wouldn't have received that closure notice  

bradders1983

I also doubt its anything to do with Branson given his stake in VM is not very significant.

JamesPeter

bradders1983 said:

I also doubt its anything to do with Branson given his stake in VM is not very significant.

Virgin Money (in the UK) is now 100% owned by Clydesdale Bank PLC (formerly Clydesdale Yorkshire Banking Group - CYBG).

They now in effect lease back the ‘Virgin’ name in a sort of reverse takeover as Clydesdale  believed ‘Virgin’ is a better branding than the Clydesdale or Yorkshire Bank names.

Beardy Branson has nothing to do with Virgin Money nowadays other than receiving a bung from Clydesdale Bank for the use of the Virgin name and branding.

D3xt3r5L4b

Much like Virgin Media who are owned by Liberty Global and Virgin Wines who are owned by Direct Wines. 

Arefer

I also received the same letter cancelling my Virgin Money card out of the blue last week.

MPescatore

Thanks everyone.
Note to D3xt3r5L4b re:

 'Oh and you’re credit rating isn’t “higher than average” since you don’t know each lenders lending criteria, so you cannot possibly “rate yourself”.'

The monthly Clearscore report I receive clearly states that the rating is higher than (an) average. It's a metric they highlight. How that information is used by lenders I'm not privy to, sure, but that was the basis for the claim. 
Anyway, thanks again - was just curious...

redux

MPescatore said:

Thanks everyone.
Note to D3xt3r5L4b re:

 'Oh and you’re credit rating isn’t “higher than average” since you don’t know each lenders lending criteria, so you cannot possibly “rate yourself”.'

The monthly Clearscore report I receive clearly states that the rating is higher than (an) average. It's a metric they highlight. How that information is used by lenders I'm not privy to, sure, but that was the basis for the claim. 
Anyway, thanks again - was just curious...

According to all the reports I have a good or excellent score.

I've just been turned down on a card which MSE Credit Club recommended with 95% chance (Virgin, coincidentally), and successfully opened an account which two said 0% chance and one didn't even put on a list.

D3xt3r5L4b

MPescatore said:

Thanks everyone.
Note to D3xt3r5L4b re:

 'Oh and you’re credit rating isn’t “higher than average” since you don’t know each lenders lending criteria, so you cannot possibly “rate yourself”.'

The monthly Clearscore report I receive clearly states that the rating is higher than (an) average. It's a metric they highlight. How that information is used by lenders I'm not privy to, sure, but that was the basis for the claim. 
Anyway, thanks again - was just curious...

Lenders don't see or use that number or rating though - so it's entirely pointless referring to it or using it to judge yourself.