July 5, 2006

Price comparison site Moneysupermarket.com has issued a statement regarding the recent move by MBNA to standardise default fees on all of its credit cards from £25 to £12.

Robert Kenley, head of credit cards at the site, described the development as "a welcome move for consumers".

He also urged all other credit card providers who have not yet announced their plans regarding late payment fees to clarify their position and confirm whether or not they would follow the likes of MBNA, Barclaycard, HSBC and Lloyds TSB by cutting fees.

It was also noted by Moneysupermarket that MBNA has recently moved to offer its customers more cards which charge zero per cent on balance transfers for 12 months.

"MBNA now provides four cards (including the Virgin Money credit card) offering zero per cent on balance transfers for 12 months and these four cards join a group of only four other cards to offer zero per cent on balance transfers for 12 months or more," said Mr Kenley.

However, he added that MBNA and Virgin were reducing the duration for which zero per cent interest will be available on purchases from six months to three months.

The providers are "sending out a signal to competitors" that they are still serious members of the market, according to Mr Kenley, who said that this was a positive thing for consumers.