MBNA put up for sale

chattychappy

I wonder if this rule that you can't transfer balances between cards of the same bank will continue.

It was understandable when you had fee-free BT offers and they really were designed to capture new customers. But BTs are different these days - consumers aren't loyal to particular cards and they are generally more self-financing.

So banks might be very happy for consumers to shift balances within the same institution if they pick up a fee each time.

dazza.mk

chattychappy wrote: »

I wonder if this rule that you can't transfer balances between cards of the same bank will continue.

It was understandable when you had fee-free BT offers and they really were designed to capture new customers. But BTs are different these days - consumers aren't loyal to particular cards and they are generally more self-financing.

So banks might be very happy for consumers to shift balances within the same institution if they pick up a fee each time.

But the fee doesn't really mean a great deal if the choice is the balance stays on a standard APR card or if it is moved to another 'inhouse' product and the bank must finance the 0% APR for an additional 6/12/18 months

Pinkteddy

Hi,
A friend of mine has a claim registered with the FOS against MBNA for mis-sold ppi. MBNA have just written to him saying they are selling his debt on (unlawful).

But surely the Bank of America can't sell MBNA while there are thousands of disputed claims being investigated by the FOS?

If MBNA is dissolved, don't the disputed debts dissolve with it?

I shall telephone the FOS tomorrow, I think, to see what they say.

oscar52

Pinkteddy wrote: »

Hi,

But surely the Bank of America can't sell MBNA while there are thousands of disputed claims being investigated by the FOS?

This is one of the reasons they cant sell it (as in they have tried and failed). Who in their right mind would want to be lumbered with all the problems they currently have - such as PPI.

ppc1

oscar52 wrote: »

This is one of the reasons they cant sell it (as in they have tried and failed). Who in their right mind would want to be lumbered with all the problems they currently have - such as PPI.

Pinkteddy - Dont worry all claims and liabilities will remain the responsiblility of Bank Of America (BAC) for up to 6 years from the point where they stop trading or sell the business.

Oscar52 - You are right in part that a prospective purchaser is unlikely to want to buy BAC's liability regarding ppi and default fees. However it is not impossible - someone might want lock stock and barell but they would have to be stupid!

BAC will be sold, possibly by a few companies. BAC can get around its compliance obligations by taking different steps depending on the terms of it sale. The most likely is:

1) Agree to keep existing staff in customer complaints team and respond within FSA guidelines for up to 6 years, gradually winding down the complaints team over time.

2) outsource to a third party and ask then to respond to complaints. This option is less likely as such a company would not know the companies systems and the way the business was run. It will also be more costly.

I guess there is an option 3 too.....

3) BAC pays a sum of money (enough to cover all PPI liablility) and new buyer runs the complaint team as a going concern. There is a big risk with this option though. Potentially if the FSA took action against BAC/MBNA the new buyer would be responsible and this may not be good for their reputation!

One thing that can be certain is that whether MBNA is wound uo or sold BAC will have to allow customers to make complaints and respond to them in line with FSA rules.

datostar

Roger1 wrote: »

:rotfl:

Which of these gave you best service? Or were they much of a muchness?

I'd say MBNA because of their regular interest free balance transfer and purchase offers.

James26

I have to say never had any issues with MBNA only 1 small issue when I had big debts they reduced my credit limit on one of there cards by 5k in one hit. I hope who ever dose purchase Mbna keeps the model has it is. I believe virgin money may be interested in purchasing...

thegoodman

It want be the same. Less credit card companies, less 0%, less reward, more charges. That's how it work

Rupert_Bear

Im dreading the day I click on this thread to see OPUS has bought MBNA credit card business.