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Virgin Money to charge for its bank account

When Virgin Money launches on the high street in London and Edinburgh at the end of the year it’s current account customers will be charged a monthly fee. The fee has not yet been disclosed.

Head of Public Relations for Virgin Money, Scott Mowbray said: ‘It is in our plans, and we have not disclosed the charge. The charge is to make bank charges transparent. Overdraft and unauthorised overdraft fees cross-subsidise free banking and we think that it is better to have a fee so that people know what they are paying for because there is no such thing as free.’

‘The fee-based banking model is common in Europe, with our proposition it is cleaner and simpler. There are charges associated with banking so why not make it up front, we want to make things more straightforward.’

Scott Mowbray also said that Virgin are aware this will be a challenge in the current market and considering the current climate but he said ‘if things are to change in UK high street banking fees will have to be charged.’

Julian Pruggmayer, an IFA with West Midlands-based intermediary Financial Risk Management, said: ‘I think that bank charges will be a good thing because it will mean that the charges are clear.’

‘Banks have acted irresponsibly for years. Taxpayers had to bail out the banks as a result of the credit crunch and banks are still treating us badly with high charges. I welcome anyone in the market who is willing to give the banks a run for their money and I think Virgin will.’

Craig Gedey Marketing Manager for Debt Advisory Line commented: ‘Charging a fee for banking is becoming more commonplace in UK high street banking.’

‘The exact amount of the fee for the Virgin Money current account is crucial especially if overdraft fees and other charges are likely to be additional costs that customers may incur.’

‘Some banks have already moved into charging on a daily basis for unauthorised overdrafts and people who may be already struggling with debts should consider an alternative bank account.’

‘At Debt Advisory Line we offer a managed bank account that charges a fee but there are no additional charges, guaranteed. No overdraft fees, no credit checks and you get an instant sort code and account number, visit www.me2money.co.uk to find out more.’