Payment/Compensation to Virgin Account Holders re sale to Nationwide

Section62

penners324 said:

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Whats being a customer of Virgin got to do with their buy out value? Nobody has been short changed

The customer is the product.

Arguably, because Virgin Money have a history of providing good value products (especially regular savers), the takeover means the potential for VM customers having worse products going forward and as such may feel 'short changed' by the deal.  But the reality is that there is nothing they can do about it because the deal has been done.  There are parallels with the demutualisations of the 90's - ultimately the consumer will lose out, but by an amount the relevant authorities don't consider enough to warrant intervention.  And with 'free cash' swilling around, the consumers who could make a difference aren't going to.

WillPS

TheBanker said:

As a Nationwide Member, I own a tiny part of Nationwide, so the money they used to buy Virgin was my money, and part of the profit they've made is therefore mine.

It absolutely was not your money, to be very clear. The reserves used (not customer deposits!) were the property of a business which you, by default, own a share of. It was not your money, it was Nationwide's to do with as they see fit.

No payment to you was due, but Nationwide did one anyway and marketed the hell out of it.

Coventry have made no such payment with regards to their takeover of a bank.

jimjames

EllieDog said:

To add insult to injury, as Martin and his Team will be aware, Nationwide are now offering a £175 inducement to open an account. 

Why not open an account to get the £175 then? Nothing stopping you and you aren't an existing NW customer yet