Following the recent decision by Tesco Bank plc to write to existing island customers giving notice of that they were withdrawing credit card services, the Department for Enterprise initiated direct contact with Tesco Bank to better understand their rationale for these changes for Isle of Man residents.
Following these discussions, Tesco Bank have confirmed they will be extending the closure date for the approximately 1200 impacted credit card customers by six months from the originally planned date of 3 May 2022.
This extension has been designed to help those affected find alternative options for their credit card requirements and explore the other options available to Isle of Man customers.
A number of banking groups with a presence in the Isle of Man do continue to provide credit cards to island residents and the Department for Enterprise continues to liaise directly with the local banking community.
As part of this dialogue HSBC has confirmed that they are fully open for considering applications for credit cards from Isle of Man residents; existing customers can apply via their usual online channel; non-customers should use the HSBC branch in Douglas.
Dr Alex Allinson, MHK, Minister for Enterprise commented:
‘I am grateful for the decision from Tesco Bank to extend the closure date of their services to Isle of Man customers for an additional six months, which I hope will provide valuable time for customers to find alternative providers.
‘The Department will continue to liaise with the local banking community and other potential providers to explore a range of options to ensure consumer services such as credit cards are fully available on the Island.’
The Isle of Man Financial Services Authority also continues to monitor the availability of credit to Isle of Man residents from banks licenced in the Isle of Man, and this includes the availability of credit cards from their wider banking groups.
The Isle of Man Government has previously engaged with on and off-Island providers of credit cards to Isle of Man residents and found that there appeared to be no legal prohibitions under UK law that prevented UK regulated credit card providers from issuing cards to our residents.
It has historically been very much a commercial decision and the range of providers offering services to the Island has fluctuated over a number of years.
