MBNA Europe (the USA version was recently acquired by Bank of America) had a little bit of a public relations snafu recently when it sent a letter to some cardholders in the UK about how they would be charging them a fee for having a positive balance on their credit cards. Obviously the mainstream media has jumped on MBNA because that’s the popular thing to do these days but it’s still pretty ridiculous even if you don’t put the media spin on it. While it’s funny that one would have a positive balance (most of the time it’s by accident and you don’t know about it until the next billing cycle), for a credit card company to complain and actually threaten (it’s a threat, not a polite request which they could’ve gone with) a cardholder with fees if they don’t request a check is ludicrous.
One interesting note out of the article was this quote: “positive balances do not have protection from fraud” by a spokesman for MBNA. The article originates in the UK so their laws might be different but I’ve never heard of positive balances not being protected by the same fraud measures as a card with a negative balance. In fact, I just got off the phone with a representative from Citi and they assured me that you get the same liability protection regardless of what your balance amount is. So either the UK laws are different or someone needs a new spokesman.
Source: Telegraph.co.uk