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

SnowTiger

GinOClock said:

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. 

Don't imagine I'm very profitable.

I've spent £0 on my Virgin credit card this year.

Spending in 2019 was only £302.  Virgin probably made less than £1 in transaction fees.

My card expires in July.  I won't be surprised if they don't issue me a replacement card.

D3xt3r5L4b

Not to mention their £7million loss they reported as well. 

However the FCA guidance says about not letting people get into defaults etc during the COVID-19 pandemic, but what about after?

People will run up loads of debt during this time and then not be able to pay it back, will default later down the line and likely either have their debt sold on or have AP markers (which will no doubt lead to an influx of people posting on here in XX months time complaining about it).

Stopping people’s use of credit during this time
is, in my eyes, the best move to do rather than letting debt accumulate down the line. 

If people have no emergency pot to get by now then how on earth are they going to pay back debts at a later date when this is all over?

Thrugelmir

GinOClock said:

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. 

Banks have plenty of issues on the horizon to contend with. With staff having little to do at the moment might as well use their time productively. Fewer accounts reduced costs, less staff required longer term. Battening the hatches down. 

Dandytf

Willing2Learn said:

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.

Not according to VM Via Todays'  Guardian ,
VM spokesperson Said the bank had not suspended the cards of customers who had contacted it to say they were in financial difficult

nyermen

I've had dealings with both virgin and Clydesdale (pre-takeover).  Virgin were great at the time, CYBG less so.  VM's offices in Newcastle seemed very staff focused which I liked and the staff seemed happy.
I gather things havent been peachy since their takeover by Clydesdale, so the unprofitable accounts would be my thinking.
"Basel" and "capital" and so on, are reasonably well known.  What is less known is that capital is also held for "undrawn amounts" (basically, underutilised facilities, such as O/D, CC, etc.).  By cutting limits, they lose little (unless you were spending spending), and save a lot of capital cost.  32,000 accounts wont be much though, I suspect there could be more waves to come.

Nebulous2

I’ve a card which was only used for 0% and has been paid off for about 9 months. Limit somewhere around £13k. I haven’t heard anything. 

Virgin did a big push for growth, going aggressively with long 0% deals at the top of the economic cycle, which seemed like a bold move at the time. When they were sold it made more sense, going for market share to make themselves more attractive.

Clydesdale must be trying to reduce some of that risk quickly. 

born_again

Thrugelmir said:

GinOClock said:

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. 

Banks have plenty of issues on the horizon to contend with. With staff having little to do at the moment might as well use their time productively. Fewer accounts reduced costs, less staff required longer term. Battening the hatches down. 

You are joking of course.... We are busier now than when TC went bust....
Think how many TC customers there were, now think how many travel companies and how many are actually giving refunds.... 

GinOClock

Just had a text to say my card will be reinstated as of tomorrow as they "realise the timing had not been helpful ". Sometime got a wee slap on the wrist from the FCA...

[Deleted User]

I too was told my card would be closed, I don't mind a bit, it was used a couple of times for balance transfers several years ago and not used since.
A customer that doesn't make a company money is not a useful one and I quite understand that closing an account will be the outcome.

digalumps

Virgin Money seem to be reinstating all the cards they have suspended and apologising

https://www.dailymail.co.uk/money/cardsloans/article-8301135/Virgin-Money-u-turns-decision-suspend-credit-cards.html