Following customer feedback, Virgin Money has opted to reverse its decision to block certain customers from making purchases on their credit card.
The bank also conceded that the timing of the implementation wasn’t right and issued an apology for any additional distress they may have caused customers.
On Friday Fergus Murphy, group personal banking director at Virgin Money, commented: “Having made changes to a number of credit card accounts to reduce the chances of customers getting into unsustainable debt, we recognise that it was not the right time to make these changes.
“We listened and we’ve now reversed the decision. We are sorry for the additional worry and inconvenience this may have caused, particularly at this time.”
The original plans received a backlash from MoneySavingExpert, who had emphasised the impact on the vulnerable could be significant.
The plans also came at a time when the Financial Conduct Authority has been urging firms to enhance help for customers as much as possible.
In April, when the pandemic first wielded a significant impact on the UK, FCA Interim Chief Executive, Chris Woolard, stated: “In a matter of weeks, coronavirus has altered the UKs financial landscape dramatically.
“At times like this it is more important than ever that the FCA leads the way on the protection of consumers, firms and the markets.
“Our business plan recognises the impact of coronavirus on the financial services industry, while looking forward at how we transform the FCAs operations in future.”
On Sunday evening, UK Prime Minister Boris Johnson seemingly began to ease the UK economy into taking baby steps to recovery. Allowing an increase in the number of people that can travel into the workplace, for example construction workers and those employed in the manufacturing sector.
The steps seek to limit the economic impact of the COVID-19 lockdown on the UK economy.