Bad News for MBNA Credit Card Holders

Razoo

jonesMUFCforever wrote: »

What utter tosh!

There's something quite endearing about an intelligent, well-reasoned response, which of course this isn't...
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Razoo

Doctor_Duke

I don't see why there is any concern about LBG taking over MBNA. It is a sensible business decision for LBG and doubt it will affect balance transfers. LBG already allow balance transfers throughout the group and I see no reason why this should change. The only factor to bear in mind is that LBG allow a maximum of five cards throughout the group. It will be interesting to see if that too will apply to MBNA.

planteria

there isn't any, other than that it is '1 less player' in the market. in theory, in reducing competition, we have less good deals on the market. but most of the above concern is nonsense, including references to Halifax.

do you mean that a customer can hold a maximum of 5 credit cards with them DD? if so, i didn't know that.. but it's enough anyway, even for a seasoned stoozer;)

Razoo

I recently received an email from MBNA entitled: 'MBNA Cash Rewards Programme Rules'.

Section 7 is telling:

"7. Making changes [to the cash back scheme] and how we’ll let you know

We may, at any time:

• change or limit the Programme, or any part of it;
• modify, limit or remove any or all of the benefits, features or cash back promotional offers;
• withdraw the entire Programme or remove the Programme from selected customers.

We may do any of these things for one of the following reasons:

• changes to the cost of providing this service to you, including funding costs or changes to the base rate;
• changes to the level of fees paid between banks for acceptance of card-based transactions;
• changes to law, regulation, good practice or similar factors that affect us, or we think may affect us;
• changes we need to make to ensure we continue to operate our business in a way that means we are an effective and efficiently run business which is profitable, taking into account the competitive market and economic climate."

I guess this is the prelude to Lloyds Bank eroding (or removing) the cash back scheme.
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Razoo

jonesMUFCforever

.............As have all of the major card companies.
All to do with the cap in fees imposed by Brussels.

Gambler101

EarthBoy wrote: »

It was HBOS that ruined Lloyds, not the other way round. Lloyds was a good, well run bank, whilst HBOS was on the verge of going bust. Lloyds took over HBOS and crippled itself in the process.

I wouldnt say Lloyds were saintly. They had the same attitude to hard selling to customers, aggressive sales targets and aggressive managers for their sales and frontline staff just like all the other banks did, and a huge amount of PPI refunds too!

The only think they didnt do is get carried away with junk bonds and mortgage bonds etc.

But buying HBOS during the crises was such a monumental bad decision it has literally cost Lloyds shareholders over 90% of their wealth, and it was so obvious to anyone with half a brain-cell at the time too. For this reason alone I would agrue that Lloyds were actually the worst bank during the whole crises as they made IMO a catastrophic decision to buy HBOS.

Razoo

Razoo._On_10_January_2017_I_wrote: wrote: »

British bank Lloyds has bought Bank of America's UK credit card division MBNA for £1.9 billion (the deal remains subject to approval by the regulator).

Lloyds is the bank that had to be rescued in 2008 by the British government with £20billion of state money during the global financial crisis.

Having witnessed Lloyds Bank destroy just about everything that was good about HBOS (Halifax) Bank, this has to be bad news for MBNA credit card holders.

I have an MBNA credit card that pays 1% cashback on everything. Anyone care to guess how long that will survive under Lloyds Bank's money-grubbing leadership?
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Razoo

It seems the answer to my closing question is: "Until 22 September 2017."

Time to dump the card!
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Razoo

jonesMUFCforever

Razoo wrote: »

It seems the answer to my closing question is: "Until 22 September 2017."

Time to dump the card!
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Razoo

To do another take generally about UK credit cards and AMEX - Barclaycard beat MBNA to this - no more AMEX or 1% cashback just the 0.5% now with the Visa card.

cjmillsnun

Gambler101 wrote: »

I wouldnt say Lloyds were saintly. They had the same attitude to hard selling to customers, aggressive sales targets and aggressive managers for their sales and frontline staff just like all the other banks did, and a huge amount of PPI refunds too!

The only think they didnt do is get carried away with junk bonds and mortgage bonds etc.

But buying HBOS during the crises was such a monumental bad decision it has literally cost Lloyds shareholders over 90% of their wealth, and it was so obvious to anyone with half a brain-cell at the time too. For this reason alone I would agrue that Lloyds were actually the worst bank during the whole crises as they made IMO a catastrophic decision to buy HBOS.

To be fair. They were basically told by the PM to buy HBOS.

System

cjmillsnun wrote: »

To be fair. They were basically told by the PM to buy HBOS.

The fact that LTSB was also going to the UK Government for a bail out probably weakened their hand.

The situation was more complex than a bad HBOS and a good LTSB.