Bits: bad news as Lloyds tries to buy MBNA, bad news as Regus culls Gold cards

Some (bad) news in brief:

Lloyds to buy MBNA UK?

According to reports yesterday, Bank of America has put the UK operations of MBNA back up for sale following a failed process five years ago.

The business has a loan book of £7bn and is believed to worth around £8bn, implying a £1bn value for the equity.

Regular HFP readers will know that, by a gap too wide to measure, Lloyds has the worst run credit card business in the UK.  Only Lloyds, for example, could take FIVE DAYS – in a good week – to send out refer-a-friend emails for their credit cards.  Five days to send an email.  And that is if you are lucky.  I recently had someone receive a Lloyds Avios Rewards refer a friend email SEVEN MONTHS after it was requested.

Only Lloyds would block my wife’s card on suspicion of money laundering because her bill was paid BY HER HUSBAND – and then refuse to unblock it until an original (ie sent in the post, not a branch print) bank statement could be produced, which took three weeks due to my statement cycle.

The news that Lloyds is apparently eager to buy MBNA should send a shiver down the spine of anyone with a Virgin, Etihad, Emirates, United or Lufthansa credit card.  The good news is that there are other names in the frame too such as Santander, Barclaycard, Virgin Money and potentially private equity.

A sale is not guaranteed, however.  MBNA, because of its focus on loyalty and affinity cards, will be very hard hit by the interchange fee caps.  Most of its cards are probably not sustainable now and, when the current airline contracts expire, we are likely to see benefits cut or fees increased.  The customer base is certainly not secure.

MBNA DOES, however, know how to run a card business.  It isn’t perfect – I get regular complaints about non-posting bonuses, whilst I can honestly say I have NEVER had a complaint about a non-posting bonus on an Amex card – but in general they are well regarded.

Regus Gold

Regus closing down free Businessworld Gold cards

During the recession, serviced offices group Regus was throwing free Businessworld Gold cards around like confetti.  Many airline, hotel and car rental firms were allowed to give them out to their status members for free.

These offers started to dry up in 2014.  The last mainstream one, offered by Virgin Atlantic to its Gold Flying Club or Black credit card members, ended in May 2015.

Businessworld Gold allowed you to use the business lounge in ANY Regus business centre for free, as many times as you wanted.  It was effectively free hot desk space.

Head for Points was born out of Regus.  For the first three years, I probably worked out of Regus for 150 days a year for a grand total of £0.  I didn’t just use them in London – I visited numerous centres across the world when travelling. This was thanks to a Businessworld Gold card I got free with a Business Traveller subscription back in 2011.

(That is not entirely true.  At one point you could pay £20 a day and get a private office on a standby basis and I did that occasionally.  I doubt I spent more than £400 over three years on those.)

These free Gold cards usually did not have expiry dates on them.  However, I have had a few emails in recent weeks from readers who have turned up at Regus centres – including the one in Heathrow Terminal 5 arrivals – to find that the system now shows them as Blue and so not allowed to enter.

It seems that Regus has had a clean up of its database.  As Gold cards now cost £600 per year and do not even offer global access for that price, you can see why.  Historically, the charge was £299 per year for global use.

If you were planning to visit the Gatwick, Heathrow or indeed any other Regus lounge with a long-held free Businessworld Gold card, I would have a back up plan in case you find you have been downgraded as well.

Business Class to Las Vegas on BA, Virgin or American for £1,150 this Summer
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Comments

  1. Alex W says:

    I have Lloyds Premier Avios. Had an issue where one £5 transaction was charged to the card 226 times in error! Took a couple of months to sort out with various issues but ended up getting £300 compensation and kept most of the Avios after the refund too :-)

  2. Regus: I also got one of the free Gold cards, a little over three years ago. Looking at my account online just now, it says Expiry date: 31/12/2078 ! ! !

    • Does it still show Gold?

    • Clive Gardner says:

      Unlikely it will for much longer. Mine showed that expiry also, but its been downgraded to Blue without warning. Their CS rep tells me all cards over 12 months old are getting cancelled as soon as they pick them up.

  3. I’m taking a more optimistic stance on a MBNA-Lloyds integration: If Lloyds are paying £8bn for £7bn receivables, they are not buying a loan book, they are buying a business. Is it out of the question that Lloyds might be looking to shift its card book to Chester to operate it under MBNA? If I was going to pick a legacy system to use, it certainly wouldn’t be Lloyds!

    That said, since Lloyds and MBNA both have around 7% market share (I’m taking 2013 figures) their combined entity would put them at a comparable size to Barclaycard, the market leader. It will be interesting to see what impact that has on competition.

  4. Nick Piggott says:

    My Regus Gold was also downgraded with no notification, which was embarrassing when I tried to use it.

    The mobile website doesn’t show any expiry dates for cards. I had to log onto the desktop version to see that it had acquired an expiry date of a few weeks previous..

    It’s too expensve to maintain for the ad-hoc use I make. I’m finding independent hot-desk and meeting room locations much better value for money and generally far less dull to work in (admittedly, I’m in a ‘creative’ industry, not a suit-and-tie business). It just needs a bit of Google work to find them.

  5. O/T

    if you’re abroad with no champions league final available, you can set up proxy hola, set it for UK, then get the youtube live stream bt sports champions league (UK only)

  6. Alex W says:

    Has anyone had any incentive to renew a Lloyds Premier Avios for the 2nd year? E.g. extra Avios? For the first year the double Avios for 6 months and 0% interest on purchases for 12 months were great perks. But I can’t see much reason to pay £140 for another year.
    Can I downgrade to the £24 version instead?

  7. I was given a small credit limit with Lloyds and had to pre pay the card, fortunately I didn’t get told to take statements in but they did question why I had to pre pay, if it wasn’t for the avios earning potential I would have closed it just for the low limit. I do like the double avios promotion for the first 6 months as it makes the card a very good earner upto the 2.5k limit per month.

  8. Richard Smith says:

    Downgraded by Regus. I bought things from their market place so I’m cancelling those purchases in disgust at their lack of consultation about membership downgrades.

    • Clive Gardner says:

      Likewise and its bitten them in the ass. Myself and a few colleagues were big users of their paid for co-working and day office services of the back of holding complimentary gold cards. We’ve now terminated all services with Regus and will not be doing business with them again.