Could Virgin Money customers also be in line for payouts?

A general view of the newly refurbished Virgin Money banking store on North Street in Guildford. Photo: Matt Alexander/PA Wire

After Northern Rock Asset Management (NRAM) admitted it will have to use £270 million of taxpayers' money after mistakes with customers' statements, could Virgin Money, which took on the remnants of Northern Rock's mortgage business, have to follow?

NRAM told me this afternoon the mistake only came to light when they started to move customers' accounts from the old Northern Rock system onto a new one.

And Virgin has just confirmed to me they still use the systems put in place by Northern Rock before it collapsed.

Right now, they believe they will not have to make similar payouts, because the mistake was made on personal loans, not the mortgage accounts that Virgin took on.

But they can't rule it out. With concerns about how robust Northern Rock's old systems were, Virgin will be talking to NRAM in the coming days about exactly what went wrong, and trying to make sure they don't have a similar fate.

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