March 25, 2010
-
News: MBNA Trashes Credit Card Cheques
Some financial institutions are reviewing and revising policies to assure they are meeting the requirements of new credit card reform regulations while others continue to fight the system. MBNA Europe is one bank that is taking the UK governmental regulations seriously. MBNA Europe is a subsidiary of Bank of America and one of Europe's most valuable credit card companies. The bank is realigning its standards for greater clarity and transparency as requested by the new UK rules. MBNA announced that it will end the practice of issuing all new promotional cheques, standard credit card cheques and replacement cheques. The bank's new policy will become effective March 31st.
Greg Reed, Chief Marketing Officer for Bank of America Europe Card Services said that although the cheques are a valuable source for some of their credit card customers, the demand is trending down. Customers are realizing they have access to their accounts and cash advances through automatic teller machines (ATM), online and telephone balance transfers and money transfers. The bank's decision to end the cheques program is just one of several new policies that are designed to show the bank's commitment to its customers and government regulations. Although new regulations modify the handling of credit card cheques, Mr. Reed said the company decided to take it to another level by eliminating cheques altogether.
MBNA will be notifying all customers of the changes in their March and April statements. A notice will also be posted on the bank's web site. Meanwhile, good news for those customers who recently ordered credit card cheques, they will be able to continue to use them; however, after March 31st, new or replacement cheques will no longer be available. Customers can visit the bank's web site at www.mbna.co.uk to learn more on how to transfer funds and cash advances. MBNA Europe is a wholly owned subsidiary of Bank of America Corp. Customers can also visit Bank of America's web site at www.bankofamerica.com for more information as well.