Major US credit card issuer MBNA has revealed that it will comply with the stipulation from the UK's Office of Fair Trading (OFT) that credit card penalty fees should be limited to GBP12.
Having conducted an extensive review of penalty charges in the credit card sector, the OFT recently concluded that charges were excessive and out of proportion with costs incurred. Therefore the government watchdog issued a directive calling for card issuers to limit their charges to GBP12.
In response a number of retail banks, including HSBC and Lloyds TSB, have already stated their acceptance of the decree, while maintaining their ideological opposition.
Now, Chester-headquartered MBNA Europe has also declared its willingness to fall in line.
The major card issuer stated in a release: MBNA Europe will reduce late and over-limit fees on its consumer credit card products to GBP12.00. The changes will begin to take effect on June 28, 2006.
However, it added: MBNA continues to disagree with the Office of Fair Trading’s legal conclusion and maintains that its fees have always been fair, transparent and legal.