Virgin Money customers 'set to enjoy lack of credit confusion'

Tuesday, June 29th 2010

Virgin Money will tackle one of the most common causes of credit confusion, it has announced.

The provider is to improve its service by allowing borrowers to pay off their costliest debt first, which could ease their overall financial burden.

Some lenders can force consumers to repay amounts with lower interest rates first, meaning those with high rates build quickly and create credit problems.

But with Virgin Money and its new scheme, people should save approximately £70 a year when dealing with a £3,000 deficit, the company states.

Grant Bather, spokesman at the firm, says: "Our aim is to make everyone who is a Virgin Money credit card customer better off and we hope this change goes some way to achieving that."

It will come into effect from September 1st and will benefit all Virgin Money customers.

The Credit Action report for June reveals the average UK home owes more than £18,000 when unsecured loans are taken into account.