LENDER Virgin Money is demanding that a woman who borrowed cash from the firm should pay off her debt five months after she died.

A union law firm said it had repeatedly contacted Virgin Money asking them to stop and has now been driven to the Financial Ombudsman over the repeated and continuing demands.

Unionline, a unique law firm established by general union GMB and the Communication Workers’ Union (CWU), is ­acting as executor for the former GMB member, handling her will and financial affairs.

It is available to represent the unions’ joint membership of more than 800,000 when they need legal advice and representation.

After picking up a demand for repayment at her home, Unionline informed Virgin Money that the woman had died.

“The member died with no family and, as executors of her will, Unionline has made contact with all companies … to cancel the member’s accounts (and) settle debts,” said Unionline head of legal practice Matt Cordall.

“While other companies have responded and closed their accounts, Virgin Money has simply failed to deal with this matter.”

But for five months Virgin Money has failed to withdraw its demand for payment and has warned the deceased that she should not use her credit card or it will be blocked.

In addition it has added fees to the debt following non-payment.

“A complaint was made to Virgin Money in June and they have yet to respond to this,” said Mr Cordall.

“Under their own complaints procedure, it should take eight weeks.”

Unionline threatened to file a case with the financial ombudsman should Virgin Money not respond to the complaint, confirm closure of the woman’s account and receipt of the final payment and charge further late fees.

“One has to ask whether Virgin Money have considered how distressing it would be if the member had a family, for them to be receiving these distressing letters after repeatedly informing the company,” said Mr Cordall.

“The aim of the FO complaint is to stop other families receiving the same treatment in similar distressing circumstances.”