Richard Branson hikes cost of credit for Virgin Money card customers How on earth can they justify it? Judging by the ultimatum, Mr Branson has clearly lost his touch with consumers. Northern Rock clients had better watch out. A spokesman for Virgin Money insisted that the changes would affect some, but not all customers. He added that most of the customers were with Virgin Money long before the Northern Rock takeover. At the time, Virgin Money paid £747m upfront for the lender with a further £50m scheduled over the next six months. We periodically review credit risk across our portfolio and will change interest rates - up or down - based on those reviews. If we raise a customers rate based on risk, we notify them in advance and they can reject the new rate and pay off the outstanding balance at the existing rate. This is in accordance with the industry principles, which we fully adhere to. Industry experts warned Virgin Money was unlikely to be the only company to increase rates as providers "tighten up their underwriting and acceptance criteria" following the financial crisis. Andrew Hagger, of Moneynet.co.uk, said: "This is a hefty rise and it's hard to justify if the customer is running their card as per the original terms and conditions agreed. I see this happen from time to time and it's a bitter pill to swallow. Another industry figure warned banks were likely to focus their lending with existing customers. There is also an increasing emphasis on focusing such products on existing customers and typically those who hold a current account with the provider concerned. For example if you want a credit card or unsecured loan from HSBC you can only get one if you have, or open, an HSBC current account.