Credit Card Overview
Fact: there are more credit cards than people in Britain and the country's debt problems are amongst the worst in the world.
When choosing a card provider, its policies on responsible lending and debt advice provision are of key importance. The green and ethical concerns you bring to who you bank with, concerns about equal opportunities or the environment, are just as applicable to who you get your credit card from.
This section also looks at the green or ethical worth, as well as the practicalities of charity affinity cards.
Does your credit card provider treat its customers responsibly?
What are charity affinity cards and how do they work?
Does your credit card provider treat its customers responsibly?
Responsible lending
According to the British Banker's Association (BBA), responsible lending means 'providing credit, based on background checks and professional judgement, to people who can accommodate repayments without getting into financial difficulty'. As the sheer number of people in debt today shows, these principles are not always well applied by credit lending institutions. In 2008 our credit card debt hit £54.4bn and continues to rise.
Transparency is key - credit card customers should be presented with the terms and conditions attached to their card up front and in plain English. It is important to check whether your provider has a responsible lending policy in place, and how it is implemented if it does exist.
Debt management
Credit card debt is all too common in the UK. Some financial institutions offer basic in-house debt advice services, the scope of which can vary greatly. Often providers will refer customers to free advice services including the Consumer Credit Counselling Service, the Citizens Advice Bureau and others.
Use our search tool to find details of your provider's debt management services. Information on this subject can be found under 'Responsibility toward Customers'. Alternatively contact your provider directly for further information.
What are charity affinity cards and how do they work?
Affinity card providers make a small donation on behalf of the card holder to the charity it is associated with.
Such charity donations average around 25p per £100 spent. So, in order to donate £100 to your charity of choice you'd have to spend £40,000 with the card. Most providers also make a one-off donation of between £5 and £25 on each new card account.
In their analysis of charity affinity cards moneysavingexpert.com suggest that a more effective way to donate money is to use cash back cards. Cash back cards operate in much the same way as affinity cards except that instead of a charity, additional money goes to the card holder and this money is usually considerably more than a standard charity card donation. The cash back card holder can then donate the money they have earned to the charity of their choice and if eligible, Gift Aid it, so rather than £1 the charity will receive £1.28. Donations on affinity cards are not eligible for Gift Aid.
Your next steps
See our guide Next Steps - Credit Cards for more suggestions on how to find out about your credit card provider's green and ethical policies, how to contact them and how to find the right credit card for you.
Credit Card Search
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Credit Card Provider
Virgin Money
Green/Ethical Products
- Virgin Climate Change ISA (invests in companies with ‘lighter than average’ environmental footprint)
- Charity Deposit Savings Account
- Climate Change Fund
Ethical Lending or Insurance
No evidence of an ethical lending policy found for Virgin Money.
According to Virgin Money’s Pillar 3 Disclosure:
“Responsible lending is key to Virgin Money’s lending policies and practices and we always seek to ensure that we understand our customer’s ability to repay and the affordability of any borrowing. TCF is core in everything we do and a full TCF analysis is undertaken for any new product launch, routinely as part of the commercial and operational management of our portfolios and annually as part of the product renewal cycle”
This does not, however, provide evidence that Virgin Money refuses to lend to certain companies or customers operating in areas typically considered to be unethical.
Human Rights
No policy was found to indicate that Virgin Money avoids lending or insuring companies that directly contribute to human rights violations.
Financial Exclusion
No evidence of any accounts, products, or services aimed specifically at the financially excluded.
Virgin Money acquired Northern Rock plc on 1 January 2012, which engaged in partnerships with credit unions. It is unclear how the Virgin Money acquisition will affect Northern Rock’s credit union partnerships, which were supported through the Northern Rock Foundation.
According to Virgin Money’s website: Virgin Money is committed to supporting the Northern Rock Foundation until the end of 2013 and discussions are ongoing to consider how they can work together beyond that point.
Unable to find information on branch accessibility. However, according to the Virgin Money website, the bank's website is accessible to customers with disabilities. It also provides literature in Braille, large print and audio tape and offers Typetalk services.
No evidence found of the bank’s involvement in any microfinance or microinsurance projects.
No evidence found that the bank invests in or lends at lower rates to financially excluded communities.
Environment
No evidence of an environmental policy found for Virgin Money.
No evidence found of the bank’s commitment to continued improvement of its environmental performance.
Carbon Neutral
No commitment to become fully carbon neutral was found.
Equal Opportunities
According to its Annual Report, Virgin Money’s parent company, Virgin Group, has a diversity policy that takes into consideration the key equality issues of age, colour of skin, disability, ethnic origin/race, gender/trans-gender status, marital/civil partnership status, sexual orientation, religion or belief.
Women on the Board
2/14 women hold top level board positions (14.3%)
Voluntary Standards & Initiatives
Virgin Money abides by the 'The Lending Code', a voluntary code which sets the standard for good banking practice.
Charitable Giving
Virgin Unite is the ‘not-for-profit’ entrepreneurial foundation of the Virgin Group. Virgin Unite works with partners around the world to develop new approaches to tough social and environmental issues.
According to Virgin Unite’s website, Virgin Money helps many charities in the areas where they are based. The list includes Green Light Trust, an environmental charity that helps people, communities and organisations create sustainable activities; Waverley Care, a charity that supports people with HIV and Hepatitis C; and the Norwich City Community Sports Foundation, which helps people with disabilities achieve their goals through sport.
Virgin Money also operates Virgin Money Giving, a not-for-profit online fundraising website designed to help people to raise more money for charity. Virgin Money charges a 2% commission on donations and event fees to contribute towards costs incurred by Virgin Money Giving, which is a not-for-profit subsidiary.”
Virgin Money
- Credit Card
- Savings
- Investments
- Mortgages
- Private Pension Fund
- Insurance (Home, Motor, Travel, Pet)
Virgin Money
Virgin Money plc
Jubilee House
Gosforth
Newcastle upon Tyne
NE3 4PL
