Credit card giant MBNA have announced that they will change their repayments system so that customers repay their most expensive debts first, four months before the end of the voluntary year of compliance.

The changes made by the credit card provider will benefit thousands of MBNA credit card customers who will save money by paying off their most expensive debts first, from the 1st September.

Currently credit card users who use their cards to transfer their debts to a zero or low interest rate card are then forced to repay their cheaper debts first, allowing higher rates of interest to accumulate on their more expensive debts.

The government announced earlier this year that they would be enforcing legislation that would rectify this practice but the credit card industry said that they would volunteer to do this without the need for legislation, with the agreement that they would put the new system into practice by the end of this year.

MBNA has announced that their new systems will be in place from September “ready to meet the new requirements”

Michelle Slade, from consumer website Moneyfacts.co.uk, said: “This news is welcome as MBNA is one of the biggest players in the market and this will save its customers a small fortune in interest. It

Read more…