Card Renewal Refused - Annual Fee Refund?

BigmanDerby

Today I received an email from Virgin Money telling me that my Virgin Atlantic+ card is due to expire soon and that they won't be issuing me a new one (no idea why because my credit score is excellent and I've never missed a payment or gone over my limit or anything).

But my real gripe is that I paid £160 annual fee in May and they are saying that they won't refund this.Surely they can't do that? Their explanation was that they only refund if the card hasn't been used - but obviously had I known this was going to happen I wouldn't have paid the annual fee.

I've lodged a complaint but I'm curious if this has happened to others? Can they really charge a fee, take the service away but keep the fee?

manyfluffyclouds

I’d expect a prorata refund.
eg if you’ve been able to use the card for 3 months then should should get £120 back.
id complain strongly if that wasn’t the case.

Ive closed cards of my own part way through year and received a refund. In this case its them that’s breaking the contract (not that I’ve read your contract)

BigmanDerby

Thanks - I actually wouldn't expect a refund (though I'd claim one!) if I had chosen to close the account myself but in this case it's totally out of my hands.

I'm claiming a full refund as it was an 'annual' fee and I'm not getting a year of service but we'll see where we get!

It just seemed totally out of order to me.

la531983

https://forums.moneysavingexpert.com/discussion/comment/82062737#Comment_82062737

You have no basis to claim a full year, as already said they have given you X months. Its no different to anything else, if you or your car insurer cancelled your policy half way through the year would you expect the full year back?

You are likely to have more joy if you ask for a pro-rata one, asking for the full year is, quite frankly, trying it on and will get their backs up

BigmanDerby

Well yeah I know that and I would agree, but they already told me that don't they don't do pro-rata refunds as "it is an annual fee for a full year of service and not applied or calculated on a month-by-month basis".

So I don't think it's "trying it on" to ask for the full annual fee back if it's that or nothing? But obviously a pro-rata would make a lot more sense and it is what I originally requested.

NoodleDoodleMan

Virgin Money were taken over by Nationwide 1st Oct. 2024 and all their business transferred effective 2nd April 2026.

Could this be relevant ?

Just a thought - cue somebody with better knowledge of these two financial institutions.

Maegi

https://forums.moneysavingexpert.com/discussion/comment/82062838#Comment_82062838

Nationwide have much lower risk appetite than Clydesdale/Virgin had plus you normally had to have another product meaning they have lots of credit card customers who also bank with them.

I would personally complain and ask for whole annual fee refunded as they're the party cancelling, not you.

NoodleDoodleMan

Yes, I reckon a formal complaint to the Financial Ombudsman is the way forward.

BigmanDerby

https://forums.moneysavingexpert.com/discussion/comment/82063364#Comment_82063364

That would certainly be the next step if they reject my complaint - so far I've just been told No via their Chat but they escalated the complaint

saajan_12

https://forums.moneysavingexpert.com/discussion/comment/82062755#Comment_82062755

Agree their argument makes no sense - you paid a full year not up to the expiry of this card, so they need to figure out how to give you a full year of service.

Sorry not useful other than just trying different ways to convey to them. If no luck, your next step is a formal complaint, and after 8 weeks then escalate to the Ombudsman.

NoodleDoodleMan

https://forums.moneysavingexpert.com/discussion/comment/82063388#Comment_82063388

I've had to take a couple or so complaints to the FO over the least few years, each one dealt with thoroughly.

They were very helpful fielding my initial 'phone calls for advice and guidance before I decided to go formal.

It is a relatively long process,- and time consuming in respect of administrative work to produce supporting evidence.

Good luck if you go that route.