Exact date high street bank to axe key service for 10,000s of customers in days – check if you’re affected

A BIG high street bank is set to axe a key service for tens of thousands of customers in a matter of days.

Metro Bank will no longer offer credit card services for retail customers from September.

All existing credit cards will stop working from September 10.

Plus, new customers cannot apply for the bank’s personal credit card, which has a single 18.9% interest rate and no fee.

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.

Metro Bank’s business credit cards and all overdraft offers will be unaffected.

A spokesperson for Metro Bank previously 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 credit card customers will need to find another provider if they want to keep shopping this way.

If you still have an outstanding balance on your card after September 10, you’ll still be able to make repayments as usual – there’s no time limit on repaying any 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. 

It’s important to note that customers won’t be forced to pay off their debt in full.

The bank says that all repayment options will continue to be available to those affected.

Customers will also continue getting 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:

• £20 (or the balance if less than £20)
• Any fees and charges for the month, plus 5% of your remaining balance

Do bear in mind, if you only make the minimum payment, it will take longer and cost you more to clear your balance.

What do the experts say?

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you’ve got a big debt on your credit card, you might be worried about paying off the bill now the Metro card is being withdrawn.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.

Find the best credit card deals

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.

Other Metro Bank changes

The move will come just days after the bank introduced a 2.99% fee on all overseas debit card transactions.

This includes popular tourist destinations such as Spain, Portugal and Turkey.

The fee has been added to every individual transaction made outside the UK, which could significantly add to the cost of your holiday.

For example, if you spent £500 on the card during a family holiday you would pay £14.95 in fees.

If you withdraw cash from an ATM, the fees are even higher.

Holidaymakers will now be charged the 2.99% fee plus an additional £1.50 to withdraw cash from an ATM while on holiday.

This means that if you take out £200 worth of foreign currency, you would pay £7.48 in fees.

In July, The Sun exclusively revealed that Metro Bank had emailed customers to make them aware of the changes.

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