Friday, May 11, 2012

Please Sir Richard Branson end Virgin Money policy to lend for gambling, and stop accepting credit cards on Virgin Games

Anthony Franklin
(email address deleted)
Sir Richard Branson
The School House
50 Brook Green
London, W6 7RR
England


11th May 2012.

Dear Sir Richard Branson,

I am writing to ask for your leadership to conduct a review of your companies banking and casino operations with regard to the use of credit to fund gambling transactions, specifically the use of payment cards linked to any form of credit (credit cards, charge cards, debit cards linked to overdrafts etc.) with a view to discontinuing such practices at Virgin Money and Virgin Games. 

I make my request to you as a recovering problem gambler who has lost everything of financial value through 30 years of gambling addiction. Aside of the financial consequences of my gambling addiction it has had a devastating impact on my family, work and social life. If you are interested to know more about my personal story you can view my blog at: http://responsiblegambling1.blogspot.com/ and my story was recently covered by journalists investigating the prevalence of gambling addiction and can be viewed at: http://www.stickortwist.co.uk/2012/05/01/i-started-when-i-was-11-at-13-it-became-a-problem-30-years-with-a-gambling-addiction/

The case for taking a lead to discontinue such practices is set out as follows:

1.   UK banks are committed to responsible lending practice. Lending for the purposes of    gambling/speculative transactions does not seem to fit with responsible lending policy. 

1.1. If an individual walked into a Northern Rock/Virgin Money branch and applied for a £20,000 loan with declared purpose to use the funds for gambling then the bank would decline the application. So why is paying by credit card for gambling transactions viewed any differently?

2.   To prevent and make it more difficult for problem gamblers to be able to run up huge bank debts. 

3.   To promote responsible gambling policy specifically not spending more than one can afford to.  

The argument that credit cards paid in full in each month are in some way exempt from the lending argument is not valid in my view as credit is extended from the moment a transaction is posted to an account to the point at which the balance is paid off. Banks of course know this and thus operate a credit scoring process to assess an individual’s ability to repay.

The British Gambling Prevalence survey said that an estimated 0.9 per cent of the adult population (by one measure) or 451,000 people – could be classed as a problem gambler, up from the 0.6 per cent - or 300,000 - recorded in 2007 and 1999. The NHS Survey recorded even higher estimates of 3.2% of the population or 1.3 million estimated to be a problem gambler. It is estimated that for every problem gambler there are an additional 10 people impacted. (family, friends, work colleagues etc.)  So this is a significant problem affecting very large numbers of families (and society) in the UK. 


I recognize that for many people gambling is an enjoyable recreational activity. I do not seek to advocate a total block to payment cards (Debit cards, Pre-Pay Cards) being used to pay for gambling transactions as I believe people have a right to choose how to spend their own money.

I hope that you can agree and that with your leadership Virgin Money and Virgin Games can immediately review this issue with a view to discontinuing the practice of allowing credit to be accessed through cards to pay for gambling transactions.

I am happy to provide any further information that you need, I can be contacted by email at (email address deleted).
Yours faithfully,


Anthony Franklin.

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