MBNA Introduces New Measures to Benefit Credit Card Customers

Minimum Payment and Payment Allocation Changes Allow Customers to Manage Balances More Easily

Carrick–on–Shannon, Ireland – MBNA Ireland has this week announced the introduction of two significant changes to its terms and conditions, demonstrating its ongoing commitment to do the right thing for all of its customers.

First Change: High to Low Payment Allocation

From 29 April, 2011, MBNA Ireland is changing the way payments are allocated to customers’ credit cards.

The move will benefit many customers and mean payments made on MBNA Ireland credit cards in Ireland will now automatically go towards paying off the highest interest rate charges first, meaning many customers could pay less interest over time on outstanding balances.

Will Curley, Ireland Card executive for Bank of America, which operates the MBNA brand, said:

“This change is good for our customers and means that many of our customers could pay less interest over time on outstanding balances. Our customers are our business and this change is part of our ongoing programme to give them a better deal.”

“The change also provides clarity to the way payments are allocated to customers’ accounts as the method we use is a straight high to low allocation of payments.”

All customers will receive notification, outlining the changes to the way payments are allocated to their accounts, from early February.

Second Change: 1% Minimum Payments

From April 2011, minimum payments made on MBNA credit cards in Ireland will cover at least one per cent of customers’ principal loan balance on their accounts, plus any necessary interest, fees and charges.

The change could see some customers paying less interest over time while paying off their outstanding balances quicker.

Will Curley said:

“We have chosen to strike a balance between ensuring our customers are able to save interest and pay their balances quicker but at a limit that minimises the impact on customers that may be experiencing financial difficulties.”

MBNA this week sent out information to all Irish customers in advance of the change that will be reflected in customer statements from May using practical examples to talk them through the changes.

MBNA Ireland has also developed an online calculator – available at www.mbna.ie/minimumpaymentchange – showing customers what the new minimum payment calculation could mean to them.

Any customers who would like to know more can visit www.mbna.ie/minimumpaymentchange or speak to a trained adviser on 0818 409 511.

* Calculation assumes only the minimum payments are made every month, that no promotional rates, fees or charges are applied and that the customer makes no further transactions.