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Some of Virgin's credit card customers have just been told that their interest rates will rise by 50pc.
Credit cards will become the next flashpoint between banks and their customers after Virgin raised its clients' interest rates by 50pc. More than 15,000 customers of Virgin Money were issued with a "take it or leave it" ultimatum from the Branson-owned bank that recently promised it would bring "fresh ideas and an injection of new competition" into banking and "provide value for customers". The move follows recent rises in mortgage rates from leading banks and building societies, and experts believe this will be the next battleground for banks to squeeze profit out of their customers as Bank Rate remains low.
"Lenders are finding it more expensive to get deposits," warned Andrew Hagger of Moneynet.co.uk. "I would expect to see more of this happening." Kevin Mountford of Moneysupermarket.com agreed. "Credit card companies are looking through their books and looking at how customers use their cards," he said. Virgin's cards are run by MBNA, which also has its own credit card offering and several other affinity partners. A spokesman for Virgin said MBNA had used its own criteria to...Read more here--: Credit card customers targeted by banks - Telegraph
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Credit card customers targeted by banks
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#15corpio commentedEditing a commentSir 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........Read previous Blog posts: Virgin to charge ALL new customers £60 a year for current accounts: Branson accused of cashing in on - allaboutFORUMS
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