Is it Time to transfer/withdraw points from Velocity?

[Bibendum]

Hi All,

I need some advice from the brains trust on this forum.

I, like many on here, have hundreds of thousands of points sitting with velocity. With the current COVID-19 situation and virgins financial position I’m concerned that if the airline was declare bankruptcy points may disappear..

What’s the likelihood of this happening and should I withdraw my points by purchasing gift cards to get some cash value at what I have..?

am I making a mountain out of a mole hill.. or is there a real threat to my velocity points been wiped out..?

 

[Cryptarcadian]

I realise I am most likely the very odd one out here, but I have been trying to cancel my panic redemptions from last week for an iPhone and an Apple Watch, so I can hang on to my Velocity points… and take the chance I can either fly more F or J, or still get ~0.5 cpd out of them again in the future.

Well the good news is I've heard back from Harvey Norman, and they've successfully cancelled the orders! I also have an email from the Velocity Rewards Store confirming they've received the refund request. Email to them was sent them on Monday, and they actually responded saying they hadn't even received the order from Velocity yet, but would cancel once they got it. Which they then did.

So for anyone hoping their order will be fulfilled, it seems very believable to me that everything is just running super slow because of the volume of orders. Hopefully I've lessened that load a tiny bit for the rest of you.

 

[tomlee1986]

I realise I am most likely the very odd one out here, but I have been trying to cancel my panic redemptions from last week for an iPhone and an Apple Watch, so I can hang on to my Velocity points… and take the chance I can either fly more F or J, or still get ~0.5 cpd out of them again in the future.

Well the good news is I've heard back from Harvey Norman, and they've successfully cancelled the orders! I also have an email from the Velocity Rewards Store confirming they've received the refund request. Email to them was sent them on Monday, and they actually responded saying they hadn't even received the order from Velocity yet, but would cancel once they got it. Which they then did.

So for anyone hoping their order will be fulfilled, it seems very believable to me that everything is just running super slow because of the volume of orders. Hopefully I've lessened that load a tiny bit for the rest of you.

I wish you all the best of luck in getting the flights you wanted in the future!

 

[cumagutsa]

I realise I am most likely the very odd one out here, but I have been trying to cancel my panic redemptions from last week for an iPhone and an Apple Watch, so I can hang on to my Velocity points… and take the chance I can either fly more F or J, or still get ~0.5 cpd out of them again in the future.

Well the good news is I've heard back from Harvey Norman, and they've successfully cancelled the orders! I also have an email from the Velocity Rewards Store confirming they've received the refund request. Email to them was sent them on Monday, and they actually responded saying they hadn't even received the order from Velocity yet, but would cancel once they got it. Which they then did.

So for anyone hoping their order will be fulfilled, it seems very believable to me that everything is just running super slow because of the volume of orders. Hopefully I've lessened that load a tiny bit for the rest of you.

When did you place the original order.?? Could be a way to reference how long between order placement and HN receiving.

 

[jonboixxx]

It's all happening today. Firstly, 12 GC in the mail and now tonight an email from Ozpost, advising they have received shipping information for my 24 case order from Laithwaites, with tracking number and all. Now just waiting on about 100 or so GC, and myriad other paraphernalia.

 

[Walloper]

I'm still waiting for GC orders from the 4th!

And now Auspost have decreased the frequency of deliveries too!!

 

[Returnofthemach]

That gives us some hope they are still processing

Why would you need ’hope’ when Velocity have told everyone, in writing, that any orders submitted prior to the online store ‘pause’ would be honoured, processed and dispatched?

 

[holdenmg]

AFR says Velocity have loaned up to $200m to VA.

Failed Virgin tapped frequent flyer trust for loan - NewswireNow

The largest debt by value is the $2.6 billion owed to 26 lenders under secured corporate debt and aircraft financing facilities; by number, Virgins more than 9000 employees are due about $450 million in entitlements. It is unclear whether Velocity Frequent F…

www.newswirenow.com

 

[nickykim]

AFR says Velocity have loaned up to $200m to VA.

Failed Virgin tapped frequent flyer trust for loan - NewswireNow

The largest debt by value is the $2.6 billion owed to 26 lenders under secured corporate debt and aircraft financing facilities; by number, Virgins more than 9000 employees are due about $450 million in entitlements. It is unclear whether Velocity Frequent F…

www.newswirenow.com

Can’t read it unless you are a subscriber - in summary the article say what?

 

[tomlee1986]

AFR says Velocity have loaned up to $200m to VA.

Failed Virgin tapped frequent flyer trust for loan - NewswireNow

The largest debt by value is the $2.6 billion owed to 26 lenders under secured corporate debt and aircraft financing facilities; by number, Virgins more than 9000 employees are due about $450 million in entitlements. It is unclear whether Velocity Frequent F…

www.newswirenow.com

If that is the case, then i doubt any of the money will get back to Velocity, based on the amounts owed to others as well

 

[jakeseven7]

Why would you need ’hope’ when Velocity have told everyone, in writing, that any orders submitted prior to the online store ‘pause’ would be honoured, processed and dispatched?

mmmm Well because all their finances and structure are somewhat murky and it’s just been revealed their ‘loaned’ their own owners $200 million.

I will continue to hope until my redemptions arrive in my mailbox.

 

[jakeseven7]

I realise I am most likely the very odd one out here, but I have been trying to cancel my panic redemptions from last week for an iPhone and an Apple Watch, so I can hang on to my Velocity points… and take the chance I can either fly more F or J, or still get ~0.5 cpd out of them again in the future.

Well the good news is I've heard back from Harvey Norman, and they've successfully cancelled the orders! I also have an email from the Velocity Rewards Store confirming they've received the refund request. Email to them was sent them on Monday, and they actually responded saying they hadn't even received the order from Velocity yet, but would cancel once they got it. Which they then did.

So for anyone hoping their order will be fulfilled, it seems very believable to me that everything is just running super slow because of the volume of orders. Hopefully I've lessened that load a tiny bit for the rest of you.

Best of luck to you!

You might need it - seems there have been some back room deals for Velocity trust to loan it’s owner - VA - a gigantic sum of money.... it seems very dirty.

Starting to reek of Ansett days where assets and capital were shifted around outside of the public eye...

 

[Spongbob]

If there is a Virgin Mk2, would the bulk use of non-flying Velocity points before the voluntary administration be of some assistance to the airline?

 

[serfty]

Can’t read it unless you are a subscriber - in summary the article say what?

Search "Failed Virgin tapped frequent flyer trust for loan"

The trust set up to protect Velocity Frequent Flyer members lent up to $200 million to Virgin Australia, positioning the company as a creditor to the failed airline and raising questions about how much cash is actually backing the loyalty scheme’s points.

It is unclear whether Velocity Frequent Flyer, which is fully owned by Virgin, or The Loyalty Trust, the trust set up to protect loyalty members’ points after the Ansett collapse, will position itself as a creditor.

Under the complex corporate structure, the trustee is required to act in members’ best interests, which may mean it prefers a sale of the airline to be completed quickly instead of recovering the loan. ... ‘‘Velocity Frequent Flyer is worth nothing without Virgin,’’ a source said.

The loyalty scheme, which is fully owned by Virgin after it bought back a 35 per cent stake from private equity last year, has not been placed in voluntary administration, although redemptions have been frozen for four weeks after fears that the airline would collapse prompted a run by its members on redemptions.

 

[812Lucy]

Received iPad and iPhone today, redeemed 11/4. That's pretty quick

What company was your package delivered through? Did the shipment number provided through the velocity account match the tracking number that your were given? I have a screenshot of the shipments page for my Ipad ordered on the 19th of April and would like to track the progress if possible.

 

[moa999]

No wonder they stopped redemptions.
Be interesting to understand the timing of this loan and on what terms (versus say the various notes issued 6 months ago) - presumably after Velocity was bought back.

Be also interested to understand who the Trustee is - if this results in a loss for Velocity points holders, is there a possible action against the trustee?

 

[Lomandriel]

Well if it's true they loaned their owner $200m, then there isn't much 'hope' to me of sticking with velocity. On the assumption Virgin doesn't survive this is taking money away from Velocity to be able to uphold the value of its 'in trust' members.

I'm glad i cashed out anyhow. At least I know if they are honouring it I am done and severed - if they survive in 12 months time I will start to rebuild... but at least the coughpy redemptions got me around $800 i wouldn't have if they went under. Definitely not a fan of them "lending" 200m back given the circumstances. Certainly doesn't give much confidence to what they say about velocity being a seperate, financially secure entity i.e. trustee arrangement.

 

[TheInsider]

Well if it's true they loaned their owner $200m, then there isn't much 'hope' to me of sticking with velocity. On the assumption Virgin doesn't survive this is taking money away from Velocity to be able to uphold the value of its 'in trust' members.

Not really a matter of 'if' it is true though? Seems to be fact?

 

[Bct]

What company was your package delivered through? Did the shipment number provided through the velocity account match the tracking number that your were given? I have a screenshot of the shipments page for my Ipad ordered on the 19th of April and would like to track the progress if possible.

Unfortunately, I did not take any notice of who delivered or check tracking etc. iPads/iPhones come from Harvey Norman commercial and I suspect your timeframe from redemption to receipt will be similar to mine.

 

[tomlee1986]

Unfortunately, I did not take any notice of who delivered or check tracking etc. iPads/iPhones come from Harvey Norman commercial and I suspect your timeframe from redemption to receipt will be similar to mine.

When I received my iPad order - the van did not have any markings either and I didn't even have to sign for it

 

[clarkkent]

Might be delivered by TNT, try the code there.