MBNA to change credit card payment allocation

MBNA will change the way payments are allocated to customers' credit cards from September 1, 2010.

The move will mean payments made on MBNA credit cards in the UK will go towards paying off the highest interest charges first.

It comes four months earlier than required under new industry changes to credit and store cards announced by Government (Department for Business, Innovation and Skills) and the UK credit card industry in March this year.

Ian O'Doherty, Europe Card executive for Bank of America, which operates the MBNA brand, said: "We were in the process of implementing the change to payment allocation before the UK industry and government announcement. As a result, we had already completed much of the hard work implementing these changes.

"Our systems will be ready to meet the new requirements on payment allocation from 1st September this year, so why wait? This is in the interest of our customers and they should be benefitting now."

All customers will receive notification outlining the changes to the way payments are allocated to their accounts beginning in June.