Customers could be charged for having credit balance on credit card

In a new move the MBNA bank has announced that it may be charging consumers that have one of its credit cards and have a positive or credit balance on the card.

MBNA states that the credit cards should either have a debit balance or should stand at zero, and any consumers that have had positive balances on their credit cards for a year or longer could face a ten pound charge unless they take swift action and select one of the options put forward by MBNA.

MBNA officials state that those with positive balances on their credit cards will be given a number of option. This includes simply spending the money to bring the credit card balance back to zero or take it into the red, giving the positive balance to the bank’s nominated charity, which is Cancer Research UK, or transferring the positive balance into their current accounts.

Consumers are warned that they should make their decision fast and take action by March, as they may otherwise incur up to ten pounds fee.

One MBNA spokesman stated: 'The card was never designed as a savings account. There are only a small number of people who will incur the charge and we think many of those don't have any intention of using their card in the future.'

He also stated: 'We've had a couple of customers who have large balances on their accounts that they had forgotten about. They have stuffed the statements in the bottom drawer and haven't realised they have this money available to them.'

However, many of the bank's credit card customers are unhappy about the decision and do not see why they should be penalized for not being in the red on their credit cards – particularly with banks kicking up such a fuss about bad debts on credit cards where people have maxed out their cards and are unable to repay the balances.

Tom Smith
23rd February 2007