Major high street bank axing key service for tens of thousands of customers from TOMORROW – check if you’re affected
A MAJOR high street bank is axing one of its key services for tens of thousands of customers within hours.
Metro Bank will stop offering credit cards to all regular customers from tomorrow.
Meanwhile, all existing credit cards will stop working from Tuesday, September 10.
Customers will no longer be able to pay for goods or services in-store or online, and your card will not be accepted.
Metro Bank’s business credit cards and all overdraft offers will be unaffected.
Since June, new customers have been unable to apply for the bank’s personal credit card, which has no fee and a flat 18.9% interest rate.
However, the change for existing customers means they need to find another credit card provider to continue making purchases.
If you still have an outstanding balance on your Metro Bank credit card after September 10, you can continue to make repayments as usual – there’s not time limit on repaying the debt.
Once you’ve repaid your balance in full and it’s at £0, Metro Bank will then close your account and write to you to confirm this.
You won’t be forced to pay off your debt in full.
The bank says that all repayment options will continue to be available to affected customers.
They will continue to receive monthly statements, and be able to set up or amend direct debits and payment plans, as well as make one-off payments at any time.
Your statement will continue to show the minimum repayment amount required each month.
Customers must pay Metro Bank the minimum payment by 4pm on or before their payment due date.
The minimum payment is the highest of:
- £20 (or the balance if less than £20)
- Any fees and charges for the month, plus 5% of your remaining balance
Remember, if you only make the minimum payment, it will take longer and cost you more to clear your balance.
Changes you need to make if you're a customer
IF you have an ongoing monthly subscription that you pay using your Metro Bank credit card, you'll need to update your details now.
From September 10, 2024 any requests for authorisation on your Metro Bank Credit Card will be declined.
You need to make alternative arrangements for future payments with each subscription provider or organisation before this date to ensure that services continue and any required payments are made.
If you fail to do this and are paying a contract with a specified term, your missed payment could be reported to the credit reference agencies and may reduce your credit score.
Metro Bank will also allow customers to transfer their existing credit card debt onto a new credit card.
This means those who can’t afford to pay off their balance in full could transfer it to an interest-free balance transfer credit card.
These cards allow customers to temporarily stop paying interest for up to 29 months for a small processing fee of 2-4%.
Martyn James, consumer rights expert, previously told The Sun: “For people considering moving their debt for an interest-free deal with another credit card provider, there are three things to factor in: the interest-free period, the transfer fee and the APR if you can’t pay off the debt in time.”
“But those who make careful use of interest-free deals can comfortably clear all their debt quickly and without the extra cost of interest.”
If you want to pay your debt down completely, you should avoid spending extra money on these cards.
With MBNA’s market-leading offer, customers can stop paying interest for 29 months.
However, they need to take into account a 3.49% transfer fee.
Those with less-perfect credit scores might be eligible for a 16-month Virgin Money card with a 3% transfer fee.
Those with poor credit scores could be eligible for Fluid’s nine-month interest-free balance transfer card, which also charges a 3% transfer fee.
How to find the best credit card deals
It’s a good idea to use an eligibility calculator before applying for a credit card, as credit card applications leave a mark on your credit file and a rejection can affect your credit rating.
To assess all the available cards, try using a price comparison website like MoneySavingExpert’s Cheap Credit Club or Compare the Market.
Once you run your details through an eligibility calculator and you’ve been shown that you’re likely to be accepted, make a formal application.
To do this, you will need to provide your name, address and email address as well as details of your income so a provider can assess your eligibility.
You will also need to provide details of how much money you want to transfer to the new card, but you can often do this after you have been accepted.
If your application is approved, you will need to transfer the balances within a set period, usually around 60 or 90 days.
Your old balance will then be cleared, and you can start making interest-free repayments with your new card.
How to cut the cost of your debt
IF you're in large amounts of debt it can be really worrying. Here are some tips from Citizens Advice on how you can take action.
Check your bank balance on a regular basis – knowing your spending patterns is the first step to managing your money
Work out your budget – by writing down your income and taking away your essential bills such as food and transport
If you have money left over, plan in advance what else you’ll spend or save. If you don’t, look at ways to cut your costs
Pay off more than the minimum – If you’ve got credit card debts aim to pay off more than the minimum amount on your credit card each month to bring down your bill quicker
Pay your most expensive credit card sooner – If you have more than one credit card and can’t pay them off in full each month, prioritise the most expensive card (the one with the highest interest rate)
Prioritise your debts – If you’ve got several debts and you can’t afford to pay them all it’s important to prioritise them
Your rent, mortgage, council tax and energy bills should be paid first because the consequences can be more serious if you don’t pay
Get advice – If you’re struggling to pay your debts month after month it’s important you get advice as soon as possible, before they build up even further
Groups like Citizens Advice and National Debtline can help you prioritise and negotiate with your creditors to offer you more affordable repayment plans