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Virgin Money has apologised and reversed its decision to block 32,000 customers from making purchases on their credit card.
Telegraph Money reported earlier this week that the bank had blocked thousands of accounts after a review of customers’ finances. The decision attracted strong criticism, given many would have been relying on their cards to buy essential items during the coronavirus crisis.
Virgin Money has now U-turned on its decision and will reinstate all blocked accounts from tomorrow, Saturday May 9. Customers credit limits will return to normal.
The bank has apologised to customers for the distress caused by the original move.
It is understood that the City watchdog, the Financial Conduct Authority (FCA) was displeased with Virgin Money’s decision to close large numbers of accounts. The FCA had been in discussion with the company over the past few days.
A statement released by the lender, which has around 2 million credit card customers, said: “Following a further review, Virgin Money has decided to reinstate purchases for all of the credit cards affected, with the previous credit limits reinstated.
"These changes will be applied automatically to take effect from the morning of Saturday May 9 and customers do not need to take any action.”
Virgin Money said it was committed to supporting its customers during the Covid-19 pandemic and would ensure they were able to carry out essential transactions.
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