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Sir Richard Branson’s Virgin Money bank is planning compulsory charges of about £60 a year for new current accounts, following the tycoon’s takeover of Northern Rock. Critics have accused the high street newcomer of plotting an Arthur Daley-style rip-off. The bank intends to charge every new customer about £5 a month – even if they never stray into the red.
Campaigners fear that rival banks will follow suit and stop offering free accounts. About a fifth of the UK’s 54million current accounts already have charges. In return, they typically offer benefits such as travel or mobile phone insurance – but consumer groups argue that most customers don’t want these perks, while those that do would save money by buying them separately.
Virgin said its banking customers may receive discounts on Virgin flights, TV and internet subscriptions or gym memberships, although no final decisions have been made. The firm said charging for current accounts would spread costs more fairly and lead to lower charges elsewhere. Virgin Money chief executive Jayne-Anne Gadhia said: ‘Most people know there is no such thing as free banking. Banks have to cover the cost of free current accounts with hidden charges such as overdraft fees.’ She confirmed that ‘we’re definitely planning to charge for current accounts’, but stressed that all fees would be....Read more here---: Virgin to charge ALL new customers £60 a year for current accounts | This is Money
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Sir Richard Branson will visit the first newly branded Virgin Money bank on Monday after the firm took ownership of Northern Rock. The entrepreneur will be toasting his latest acquisition with staff at a landmark branch in Newcastle's Northumberland Street - the heartland of the old Northern Rock. He will join Virgin Money chief executive Jayne-Anne Gadhia to meet employees and greet customers of the UK's latest high street bank. The tycoon vowed to challenge the banking industry's "big five" after agreeing the £747m deal for Northern Rock, which boasts one million customers.
His chief executive announced a range of saving deals last week which aimed to be "simple, fair and transparent". The Northumberland Street branch is the first of the 75 Northern Rock branches to be rebranded. The process is expected to take around nine months to complete nationally....Read more here--: Virgin's Richard Branson visits rebranded Northern Rock branch
The banking group has issued a “take it or leave it” ultimatum, telling customers to accept the rises or pay off their balances. Rates on purchases using Virgin credit cards, provided by MBNA, have soared from 16.8pc to 24.9pc. The average credit card charges 18.9pc. Virgin has also increased rates on balance transfers, from 18.9pc to 27.9pc. The move has been criticised by Virgin Money’s customers and comes just days after mortgage lenders, such as Halifax, raised their standard variable rates, pushing up monthly payments for tens of thousands of home owners.t also comes after Sir Richard vowed to bring “fresh ideas and an injection of new competition” into banking following completion of the Northern Rock deal. Virgin Group’s founder also vowed to “improve service and provide value” for customers....Read more here---: Richard Branson hikes cost of credit for Virgin Money card customers - Telegraph