Retail banking

Virgin Money UK introduces £500 interest free overdraft

During the current Coronavirus situation we just wanted to make you aware of changes we are making for customers to our Overdraft Facility. If you have any questions please do not hesitate to get in touch.

Virgin Money Group, including Virgin Money, Clydesdale Bank and Yorkshire Bank, will make available from the 1st of April an interest-free overdraft of £500 to customers who require financial assistance due to the Coronavirus for an initial three-month period. This is part of a wide range of options for customers concerned about the impact of Coronavirus on their finances.

Customers can access the overdraft facility by contacting the dedicated Customer Care Team online via cbonline.co.uk/coronavirus-information, ybonline.co.uk/coronavirus-information/ or uk.virginmoney.com/coronavirus.

The Customer Care Team can also assist customers with the following:

  • advice on budgeting
  • debt consolidation
  • credit limit increases
  • mortgage payment holidays etc.

In addition we had previously announced the following changes in response to industry guidance issued to all providers by the FCA, which will result in almost 90% of customers seeing a reduced or stable overdraft charges.

  • Introduced a personalised EAR of 19.9%, 29.9%, 39.9% (variable) on arranged and unarranged borrowing depending on the customer’s credit score. The majority of customers will be on the lower rate of 19.9% EAR;
  • Removed the £6 monthly fee for arranged borrowing;
  • Remove the £6 daily fee for unarranged borrowing;
  • Our Monthly Maximum Charge has reduced from £100 to £40.

This new overdraft pricing is designed to be fairer as the charges are based on the amount a customer borrows and for the period of time they utilise their facility for. As a result, the majority of customers (almost 90%) will see the same or a reduction in their charges.

We have also introduced a number of additional tools and services to help our customers manage their overdraft better in line with HCCR regulations. These include Arranged Overdraft alerts, eligibility calculators, cost of borrowing calculators, clearer information at account opening and ongoing communications to repeat overdraft users, all designed to improve customer awareness and education and reduce usage where appropriate.

Pete Dockar, Head of Customer Value at Virgin Money said: “These are uncertain times for everyone and our customers are at the forefront of our thinking. That is why we are offering a £500 interest-free overdraft to any customer who requires it during this period. We are constantly reviewing the support we have in place to help customers who may be experiencing financial difficulty and we have a dedicated team of customer care colleagues in place to help customers who have any concerns or have been affected as a result.