Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • MSE Rosie
    • By MSE Rosie 2nd Jun 17, 10:43 AM
    • 88Posts
    • 40Thanks
    MSE Rosie
    MSE News: Lloyds completes MBNA takeover - but 'no changes whatsoever' for customers
    • #1
    • 2nd Jun 17, 10:43 AM
    MSE News: Lloyds completes MBNA takeover - but 'no changes whatsoever' for customers 2nd Jun 17 at 10:43 AM
    Lloyds Banking Group has this week completed its 1.9 billion takeover of credit card firm MBNA, but customers of both will see "no changes whatsoever" according to the banking giant...
Page 1
    • jonesMUFCforever
    • By jonesMUFCforever 2nd Jun 17, 10:00 PM
    • 25,854 Posts
    • 13,059 Thanks
    jonesMUFCforever
    • #2
    • 2nd Jun 17, 10:00 PM
    • #2
    • 2nd Jun 17, 10:00 PM
    We will see - there is no way Lloyds have agreed to pay 1.9 Billion for it to not make more money out of it - either higher interest rates or cuts in promotional rates.
    On the other hand MBNA balance transfer rates always seemed higher than a lot of other lenders.
    I also expect a tightening of the credit scoring for new applicants (and the managing away of unsatisfactorily accounts) once they get their feet under the table.
    What goes around - comes around
    give lots and you will always receive lots
    • PeacefulWaters
    • By PeacefulWaters 3rd Jun 17, 12:09 AM
    • 8,316 Posts
    • 10,685 Thanks
    PeacefulWaters
    • #3
    • 3rd Jun 17, 12:09 AM
    • #3
    • 3rd Jun 17, 12:09 AM
    There is, of course, the option of cutting a job or two in either LBG or MBNA.
    • virgo17
    • By virgo17 3rd Jun 17, 5:58 AM
    • 743 Posts
    • 272 Thanks
    virgo17
    • #4
    • 3rd Jun 17, 5:58 AM
    • #4
    • 3rd Jun 17, 5:58 AM
    The article states that customers will see no difference.

    If I was working for MBNA in Chester I would be just a tad worried.
    • adindas
    • By adindas 3rd Jun 17, 6:16 AM
    • 3,881 Posts
    • 2,427 Thanks
    adindas
    • #5
    • 3rd Jun 17, 6:16 AM
    • #5
    • 3rd Jun 17, 6:16 AM
    Is it right to say that it is very likely that the LLoyds share will fall ??

    Where is the platform to buy Lloyds within S&S ISA ?

    Thanks
    • PeacefulWaters
    • By PeacefulWaters 3rd Jun 17, 6:53 AM
    • 8,316 Posts
    • 10,685 Thanks
    PeacefulWaters
    • #6
    • 3rd Jun 17, 6:53 AM
    • #6
    • 3rd Jun 17, 6:53 AM
    The article states that customers will see no difference.

    If I was working for MBNA in Chester I would be just a tad worried.
    Originally posted by virgo17
    They might have a plan to shift all the LBG card stuff to Chester.

    Cardiff and Dundee might be worrying just as much.
    • eskbanker
    • By eskbanker 3rd Jun 17, 11:10 AM
    • 10,419 Posts
    • 12,693 Thanks
    eskbanker
    • #7
    • 3rd Jun 17, 11:10 AM
    • #7
    • 3rd Jun 17, 11:10 AM
    Is it right to say that it is very likely that the LLoyds share will fall ??
    Originally posted by adindas
    I'd say it's more accurate to say that any direct impact of the acquisition will long since have been baked into the share price. It's certainly started to reverse some of its recent gains over the past week but what makes you think there will be further reductions in the future, i.e. what do you know that you think the market doesn't?

    Where is the platform to buy Lloyds within S&S ISA ?
    Originally posted by adindas
    Not sure I understand the question - it would be a major surprise if any S&S ISA platform didn't allow you to purchase a popular FTSE100 share, although buying into it would seem odd if you believe it's going to fall!
    • adindas
    • By adindas 3rd Jun 17, 11:21 AM
    • 3,881 Posts
    • 2,427 Thanks
    adindas
    • #8
    • 3rd Jun 17, 11:21 AM
    • #8
    • 3rd Jun 17, 11:21 AM
    I'd say it's more accurate to say that any direct impact of the acquisition will long since have been baked into the share price. It's certainly started to reverse some of its recent gains over the past week but what makes you think there will be further reductions in the future, i.e. what do you know that you think the market doesn't?

    Not sure I understand the question - it would be a major surprise if any S&S ISA platform didn't allow you to purchase a popular FTSE100 share, although buying into it would seem odd if you believe it's going to fall!
    Originally posted by eskbanker
    I have read many times that in Merger and Acquisition case the acquiring firm share is likely to fall because they usually required to pay a premium. High probability to recover in medium/long term as they are normally good in that business.

    The premium is an incentive for the seller to accept the offer.
    Last edited by adindas; 03-06-2017 at 11:59 AM.
    • Edi81
    • By Edi81 3rd Jun 17, 12:07 PM
    • 692 Posts
    • 639 Thanks
    Edi81
    • #9
    • 3rd Jun 17, 12:07 PM
    • #9
    • 3rd Jun 17, 12:07 PM
    That may be the case when a listed company takes over another listed company but mbna was not listed.

    The fall in Lloyds share price could be down to a number of other factors e.g. the upcoming general election.
    • eskbanker
    • By eskbanker 3rd Jun 17, 1:26 PM
    • 10,419 Posts
    • 12,693 Thanks
    eskbanker
    I have read many times that in Merger and Acquisition case the acquiring firm share is likely to fall because they usually required to pay a premium. High probability to recover in medium/long term as they are normally good in that business.

    The premium is an incentive for the seller to accept the offer.
    Originally posted by adindas
    I wouldn't necessarily disagree with that line of thinking but my point was more about timing, in that, even though the deal has only recently been fully completed, the price Lloyds paid for MBNA was known last year (as per the article on here at the time and it would have been known to the market before that) so will have been factored into the share price then, rather than now or in the future.

    It's a bit like the sterling response to the Brexit referendum, where the value plummeted as soon as the result was clear, rather than being aligned with the actual departure in 2019.
    • Richmc
    • By Richmc 5th Jun 17, 6:58 AM
    • 89 Posts
    • 43 Thanks
    Richmc
    MBNA customers will see no changes, so still the c*ap customer service, I've experienced it on two occasions.
    1) A company fraudulently taking a "subscription" from my account, MBNA's reaction "sort it out yourself".
    2) A bill 140 for a hotel in Paris, I haven't left Cornwall in four years! they are still having problems sorting that one despite many promises. They closed the hacked account and opened a new one for me then promptly transferred the fraudulent transaction onto the new one UNBELEVABLE! Then they had the front to apply a foreign currency transaction fee.

    Once this is finally sorted out I will be taking my credit account elsware.

    My advice to anyone thinking of using them, NOT WITH A 10 FOOT POLE!
    • StopIt
    • By StopIt 5th Jun 17, 7:29 AM
    • 1,392 Posts
    • 1,250 Thanks
    StopIt
    We will see - there is no way Lloyds have agreed to pay 1.9 Billion for it to not make more money out of it - either higher interest rates or cuts in promotional rates.
    On the other hand MBNA balance transfer rates always seemed higher than a lot of other lenders.
    I also expect a tightening of the credit scoring for new applicants (and the managing away of unsatisfactorily accounts) once they get their feet under the table.
    Originally posted by jonesMUFCforever

    You may want to look up synergies.


    Lloyds can run MBNA at arms lengths, but bring IT systems, support and back office functions in house. That way, they can run MBNA cheaper than MBNA did and still offer the same offers as before.


    People always say this sort of things with M&A despite little evidence that this actually happens. See PlusNet and GiffGaff for examples of companies who got taken over and still operate as independent entities.
    Is it right to say that it is very likely that the LLoyds share will fall ??
    Originally posted by adindas
    That would have happened at announcement of the deal IF the investment community felt that Lloyds were overpaying. As it did not really happen, they clearly do not.
    I have read many times that in Merger and Acquisition case the acquiring firm share is likely to fall because they usually required to pay a premium. High probability to recover in medium/long term as they are normally good in that business.

    The premium is an incentive for the seller to accept the offer.
    Originally posted by adindas

    The premium is not just an incentive. it is recognition that if the company was not bought out, that they likely would have risen over a certain period anyway. Also, companies get sold "At a premium" all the time, despite their share prices being below that of previous times. The premium is based on a fixed point of time, yet someone can be a long term shareholder and lose out at acquisition time if they actually bought at a higher point.


    From a business POV this move from Lloyds makes sense. After years of building their balance sheet and dealing with the legacy of the financial crisis, they wanted to go a bit more "Risk on" so went for this for a relatively cheap deal. The risk is of course that CC debt is rising and they may end up with a higher level of delinquencies than expected but that's the risk of course.


    So yes, from a customer POV, you likely wont notice any difference, just like HBOS customers still probably haven't noticed that Lloyds own them. As a banking customer, unlike other services, your money doesn't change supplier, or become lower quality (See the crying when Carte Noire got bought out for a good recent example) all of a sudden!
    • PeacefulWaters
    • By PeacefulWaters 5th Jun 17, 9:12 AM
    • 8,316 Posts
    • 10,685 Thanks
    PeacefulWaters
    just like HBOS customers still probably haven't noticed that Lloyds own them.
    It was quite painful as a customer.
    • StopIt
    • By StopIt 5th Jun 17, 9:45 AM
    • 1,392 Posts
    • 1,250 Thanks
    StopIt
    It was quite painful as a customer.
    Originally posted by PeacefulWaters
    What happened? (Honest question as HBOS happily pretend that they've got nothing to do with Lloyds when it comes to their High Street presence).
    • Heng Leng
    • By Heng Leng 16th Oct 17, 6:12 PM
    • 4,738 Posts
    • 1,553 Thanks
    Heng Leng
    What happened? (Honest question as HBOS happily pretend that they've got nothing to do with Lloyds when it comes to their High Street presence).
    Originally posted by StopIt
    What are you on about?

    HBOS doesn't exist on the 'High Street'

    If you go into a BOS branch, it's usually got Lloyds logos around and the branch designs are basically a blue version of a Lloyds branch.
    • geoffduke
    • By geoffduke 8th Apr 19, 12:20 PM
    • 1 Posts
    • 0 Thanks
    geoffduke
    A year on and they migrated the data (March 2019)
    Performance downgrade probably due to the migration said the MBNA rep when I complained about performance. Several weeks down the line since the migration, this story has been debunked as total horsefeathers. Why do I say that? Because the performance under the Lloyds system is abysmal. Transaction on a Thursday still does not show in the account by Tuesday. Never had to access the account so many times due to lack of confidence. Can only do an over-payment using fast-pay now as the Lloyds rules do not allow over-payments to be done via the debit card. I used to do this if going away and when I knew some Amazon Kindle Books were going to be charged and needed to keep on top of it. Lloyds takeover has been noticed - by retrograde abysmal performance. I told the rep that if they had let everyone know about the migration they would have been tolerant. However, the issue were nothing to do with the migration - the Lloyds system just performs very badly.
    • Speenth
    • By Speenth 14th May 19, 4:57 AM
    • 1 Posts
    • 0 Thanks
    Speenth
    So much for the no-change claim after LLoyds takeover of MBNA
    I'm a UK citizen, permanently resident abroad and I travel extensively on business. I've used MBNA for many years precisely for that reason.

    Prior to the Lloyds takeover, MBNA fully accepted my international status and were a model of good customer relations when inevitably, I had the occasional card issues in dubious locations.

    Then, a few months ago my card was due for replacement....

    No card appeared at my long-standing overseas address. I called MBNA and was told that Lloyds policy was to deliver only by UK post in UK - so no card.

    I agreed to pay for a courier service to deliver a card. It never arrived (Lloyds only use the UK Post Office, you understand). More calls, and finally, agreement to deliver by DHL. So at last the card comes (with a UKP8.88 bill for delivery).

    I try to pay the UKP 8.88 debt on my new MBNA card via my overseas bank account (as I've done routinely for many years), but no, I can now only use a UK bank account to pay!!

    So I try to use my UK HSBC account. Can't do that - I have to use a UK debit card. I do not have one - I LIVE abroad!

    So I can't pay off my replacement MBNA credit card debt (all of which was generated by MBNA).

    Clearly no noticeable changes since Lloyds took over .... except that I'm now cancelling the card just as soon as I can find a way to pay for the cost of its delivery.

    Ridiculous
    • Penelopa.Pitstop
    • By Penelopa.Pitstop 14th May 19, 8:39 AM
    • 487 Posts
    • 173 Thanks
    Penelopa.Pitstop
    Can you setup direct debit to pay it in full for next payment period, from your UK account? If delivery fee isn't yet on a statement, you should be able to setup direct debit before next statement and it will be paid off.

    • Heng Leng
    • By Heng Leng 14th May 19, 4:37 PM
    • 4,738 Posts
    • 1,553 Thanks
    Heng Leng
    I'm a UK citizen, permanently resident abroad and I travel extensively on business. I've used MBNA for many years precisely for that reason.

    Ridiculous
    Originally posted by Speenth
    Hardly ridiculous - their products are aimed at UK residents and many providers simply close the account of non-UK residents.

    Use a local provider in your location of permanent residence.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

930Posts Today

7,010Users online

Martin's Twitter