Virgin Money 'hikes credit card rates by nearly 50%'

13 March 2012

Customers of Virgin Money are to experience an interest rate hike on the credit cards of around 50 per cent, it has emerged.

The financier - which acquired Northern Rock on 1 January 2012 - has implemented a non-negotiable rise in interest charged on purchases with its plastic products from 16.8 per cent to 24.9 per cent, the Daily Telegraph reports.

In addition, the company has decided to increase transfer fees from 18.9 per cent to 27.9 per cent and has informed consumers they must either accept these changes or pay off their outstanding balances.

A spokesman for the organisation - owned by entrepreneur Sir Richard Branson - said the alterations will not affect all customers and have come about as a result of a "periodical review" of its product portfolio.

However, Andrew Hagger of Moneynet.net told the news source they represent a "hefty rise" that is "hard to justify".

By Gary Cooper

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development