Richard Branson tackles "rip-off" financial services

The market leading credit card is the first in South Africa to combine no annual fees, no loyalty fees, and an interest rate of 0% for the first three months with a competitive interest rate from then onwards of 15.75%. The card is also the first to offer a flat 5% interest rate on any positive balance - no matter how big or small.

Speaking at the launch in Johannesburg, Branson said that South African consumers had long been made to feel grateful just to be offered a credit card by their bank and it was high time customers were given a better deal.

"South African banks are ripping off credit cardholders to the tune of R1.5 billion a year through inexplicably high charges and complex fee structures," said Branson. "The Virgin Money Credit Card now represents the best value in the market and it signals the beginning of the end of the great South African banking rip-off.

"It seems absurd to me that South African banks are still charging customers annual fees just to carry around their particular brand of credit card. That the big established banks have somehow managed to cling onto over 66% of the credit card market, after years of giving customers such poor value and service, is even more extraordinary."

"For too long, the attitude of South African banks has been that you are lucky to be their customer. The ultimate expression of this approach is the frankly ludicrous practice of charging fees for cardholders to be loyal to them or to 'reward' them!

"At Virgin Money we believe we are lucky to have you as our customer - not the other way around. If you're sick and tired of paying annual credit card fees, loyalty fees, and high interest rates, then a Virgin Money Credit Card is for you," he continued.

Transparency

John Maxwell, managing director at Virgin Money South Africa, explained that the new credit card offering was designed to provide absolute transparency in fees.

"The average South African credit card has up to 25 different charges - Virgin Money has eight, and we've made it even simpler - we have only five fee numbers," he said. "We have no Platinum, Gold or Silver cards. Everyone gets our best rates, our lowest charges, no hidden nasties and the best service - no matter what their credit limit."

Maxwell also promised that Virgin Money's fees were not just a launch 'gimmick'.

"The only way we make money is by keeping our customers happy, so they stay a customer. That means making a commitment to offer great value products, with the best customer service in the South African market," he said.

Maxwell said that the credit card offering was developed following extensive research of what South Africans really wanted from their credit card.

"We've totally done away with annual fees and loyalty fees, which we believe are impossible to justify," he said. "Our loyalty programme, Virgin Money VIP, is free. It offers a 'backstage pass' to the world of Virgin with discounts at Virgin Active, Virgin Atlantic, Virgin Cosmetics, Virgin Limited Edition and Virgin Mobile."

Rewards

All Virgin Money Credit Card customers will also have the automatic opportunity to win exclusive, money-can't-buy Virgin rewards and experiences. For example, every credit card approval during July will automatically be entered into a competition for a Virgin Money Credit Card holder and three friends to win an all-expenses paid trip to the V-Fest music festival in the UK in August 2006.

The company also announced the first three 'red carpet retailers' to join the Virgin Money VIP loyalty programme - Levi's, Primi Piatti and Red Envelope Adventures - where cardholders will also be entitled to discounts of between 10% - 15% off their purchases.

Maxwell explained that the credit card was just the start for Virgin Money and his objective was to transform the South African banking sector for the better.

"Our aim is to bring great value financial products and Virgin Money service to a sector where consumers have been taken for a ride for far too long. In that sense it is classic Virgin territory," he concluded.

The Virgin Money Credit Card can be applied for online at www.virginmoney.co.za or by calling the Virgin Money Contact Centre on 0860 VMONEY (866 639). Applicants get an instant, real-time answer to their application and get their card hand delivered by Virgin Money's 'Banking Butler'.

Virgin Money launched in the UK in 1995, and in Australia in 2003, and has over 2 million customers. The company offers credit cards, personal loans, home loans, cancer cover, insurance, pensions and saving accounts.

As in the UK and Australia, the Virgin Money Credit Card is backed by MasterCard, giving cardholders the ability to use their card at over 24 million locations worldwide in more than 210 countries.

In brief, the Virgin credit card offers:

• No annual fee, no loyalty fee, 0% interest rate for three months and 15.75% from then onwards.
• First credit card to offer a flat 5% interest rate on any positive balance - no matter how big or small.
• Applications made online at www.virginmoney.co.za or through the Virgin Money Contact Centre.
• Virgin Money Credit Card has eight charges compared to the average credit card which has up to 25 different charges.
• The card is simpler - only five fee numbers.