MSE News: MBNA pulls UK credit cards from sale

picardygirl

We've had an MBNA Platinum cards for years ..... was sent a new card in July 2011 (as old one expired), then this week we were sent two new cards ...... new account number for MBNA Platinum VISA and an MBNA Amex card with a different account number......... both accounts on one statement though.

I phoned MBNA and asked why i had received two cards to be told the only difference is the AMEX card gives me 2 reward points for every pound i spend and the VISA card gives me 1 reward point for every point i spend ...... i asked why two cards though, they said use the VISA for places that dont accept AMEX.

Sorry, i know this sounds a bit thick, but why have they done this ?

ppc1

fozmcfc wrote: »

Well I hope you are right ppc1, would hate to see my Virgin card get closed or transferred to another company who don't offer any decent 0% offers (in particular purchase offers).

The press has also statedRichard Branson could be one of the organisations who will look to buy MBNA. They will not stop issuing Virgin credit cards, I would think there would be huge financial penalties to Bank of America if it did.

http://www.liverpooldailypost.co.uk/ldpbusiness/business-local/2011/08/17/virgin-money-may-bid-for-mbna-in-chester-92534-29249509/

Dr_Cuckoo3

SAV Credit appear interested in expanding its portfolio http://www.savcredit.co.uk/media-centre/press-releases/content.asp?id=703

"SAV Credit’s management team, headed by Chief Executive Officer James Corcoran and Chairman Sir Malcolm Williamson, will accelerate organic expansion and increase the focus on further acquisition opportunities."

“SAV has expanded rapidly over the past three years and with the support of Värde Partners we will be able to accelerate our growth and take advantage of the exciting opportunities ahead of us.”

Rupert_Bear

Dr_Cuckoo3 wrote: »

SAV Credit appear interested in expanding its portfolio http://www.savcredit.co.uk/media-centre/press-releases/content.asp?id=703

"SAV Credit’s management team, headed by Chief Executive Officer James Corcoran and Chairman Sir Malcolm Williamson, will accelerate organic expansion and increase the focus on further acquisition opportunities."

“SAV has expanded rapidly over the past three years and with the support of Värde Partners we will be able to accelerate our growth and take advantage of the exciting opportunities ahead of us.”

AV Credit is a specialist provider of credit cards to near prime customers in the UK.UNQUOTE.

Dr_Cuckoo3

Rupert_Bear wrote: »

AV Credit is a specialist provider of credit cards to near prime customers in the UK.UNQUOTE.

which goes on to say ;http://www.savcredit.co.uk/about-sav/content.asp?id=648

"In addition, we have acquired portfolios from prime credit issuers in the UK, such as HSBC and Citi, developing and implementing strategies to manage these customers more effectively."


They gobbled up Marbles and Citi

http://www.savcredit.co.uk/customers/marbles/

http://www.savcredit.co.uk/customers/opus/

hippey

Bank of America have been pretty clear about wanting to dispose of non-US business for a while now. Closing the MBNA UK brand is one of the steps towards it.
Co-brands will remain due to the contracts and fees involved, eventually they will move / stop activity but this will take time. I will close by MBNA card when the cashback is paid in Jan 12. The UK is getting a bit monopolised on Credit Card business at the moment and could do with some more players.

pqrdef

hippey wrote: »

Bank of America have been pretty clear about wanting to dispose of non-US business for a while now.

Well who needs diversification when they can put all their eggs in the American basket case.

Pincher

How do they make money at all?

Even with the monthly minimum repayment, the 1.99% Balance Transfer Fee means they are lending money to me at about 2.3% per annum.

With admin overhead, they are probably losing money on me every month. Obviously I pay the whole lot back when the 0% deal ends.

Froggitt

Its a fairly typical response though when a business is up against it......retrench to known/existing markets.

bengalknights

Pincher wrote: »

How do they make money at all?

Even with the monthly minimum repayment, the 1.99% Balance Transfer Fee means they are lending money to me at about 2.3% per annum.

With admin overhead, they are probably losing money on me every month. Obviously I pay the whole lot back when the 0% deal ends.

They would still make money via merchant fees etc.