Virgin Money- suspended my card, allowed during this time?!

rymetymeuk

Hi all

I got an email from Virgin Money saying they have "Stopped All Further Spending" on my account, which is funny as I have never missed a payment and am about 30% util. Is this allowed in this current climate? I don't care at all as I have been paying it down, but I thought card issuers had to help during Covid.

thanks all!

GinOClock

I got the same email too. I gather on Twitter they cancelled 35,000 cards today.

Willing2Learn

To both of you.  That will be due to the FCAs persistent debt rules.
If either of you wanted any COVID-19 forbearance, then you need to make a specific request to the card issuer.

rymetymeuk

Thanks Willing2Learn, appreciate the reply. Yeah I fortunately don't need assistance, I just thought it was odd based on the current climate, makes sense now tho. thanks!

GinOClock

I don't need forbearance, it's an 0% card they have me 4 months ago! I'll just go down to the minimum until the deal is up since they've put a block on.

bradders1983

rymetymeuk said:

Hi all

I got an email from Virgin Money saying they have "Stopped All Further Spending" on my account, which is funny as I have never missed a payment and am about 30% util. Is this allowed in this current climate? I don't care at all as I have been paying it down, but I thought card issuers had to help during Covid.

thanks all!

They have to help by offering payment holidays on existing balances, yes.

However there is absolute nothing stopping them being prudent and minimising their risks by lowering credit limits or closing accounts from further spending.  

GinOClock

Knowing my own circumstances, I think they are just letting go of the least profitable accounts in the same way Egg did in 2008.

manub

Happened the same to me. My balance was £0. Called them, cannot share more information, just cancelled the card.

GinOClock

It's in the Telegraph, 32,000 cards blocked. Including that of a charity runner used in Virgin's own advertising.

https://www.telegraph.co.uk/personal-banking/credit-cards/customers-unable-spend-virgin-money-blocks-32000-credit-cards/

bradders1983

GinOClock said:

It's in the Telegraph, 32,000 cards blocked. Including that of a charity runner used in Virgin's own advertising.

https://www.telegraph.co.uk/personal-banking/credit-cards/customers-unable-spend-virgin-money-blocks-32000-credit-cards/

Well if his credit profile is risky to the lender, so be it.

GinOClock

Or simply unprofitable? Easy excuse to hide behind they don't have to prove. 

If they have behaved badly, I'm sure the FCA will take care of it.