A MAJOR high street bank is axing credit cards for tens of thousands of customers in weeks.
Metro Bank will stop offering credit card services for retail customers in Septemeber.
New customers can no longer apply for the bank’s personal credit card, which has no fee and a single 18.9% interest rate.
All existing credit cards will stop working from September 10.
This means that you will no longer be able to pay for goods or services in-store or online, and your card will not be accepted.
It comes just weeks after the bank said that it would introduce fees on all debit card transactions outside of the UK and months after it ended seven-day branch operations.
Metro Bank’s business credit cards and all overdraft offers will be unaffected.
A spokesperson for Metro Bank told The Sun: “Withdrawing the retail credit card is the next step in Metro Bank’s commitment to simplify its operations and streamline lending activity.
“Retail cardholders will continue to be able to use their cards until September 10, 2024.”
It means that customers will need to find another credit card provider to continue to make purchases in this way.
If you still have an outstanding balance on your card after this date, 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.
You must pay us the minimum payment by 4pm on or before your payment due date.
The minimum payment is the highest of:
Remember, if you only make the minimum payment, it will take longer and cost you more to clear your balance.
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.
Martyn James, consumer rights expert, said: “If you’ve got a big debt on your credit card, you might be worried about paying off the bill now the Metro card is being withdrawn.
“However, in situations like this, the business should allow you to keep paying off the debt by the minimum payment.
“If you’re in financial difficulties, they should set up a payment plan at a rate you can afford – and not charge excessive interest.”
However, 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%.
Martin added: “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 Tesco Bank’s market-leading offer, customers can stop paying interest for 29 months, with 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.
You should always use an eligibility calculator before applying, that’s because every credit card application leaves a mark on your credit file and can affect your credit score.
To assess all the available cards, visit price comparison websites 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 on your new card.
There are several groups which can help you with your problem debts for free.
You can also find information about Debt Management Plans (DMP) and Individual Voluntary Agreements (IVA) by visiting MoneyHelper.org.uk or Gov.UK.
Speak to one of these organisations – don’t be tempted to use a claims management firm.
They say they can write off lots of your debt in return for a large upfront fee.
But there are other options where you don’t need to pay.
