ThinkingMoney Investigates MBNA's Decision To Waive Fees For Volcanic Victims

ThinkingMoney reports on the longest closure of UK airspace since the end of World War Two. It not only cost airlines an estimated £1.2 billion but left thousands of UK nationals stranded across the globe. The eruption of Eyjafjallajökull in Iceland caused quite a stir and although it gave us a welcome distraction from all the party politics going on, it cost even the low apr credit card holders a fortune.

Hundreds of thousands of pounds in credit card fees have been racked up by UK cardholders abroad as they withdrew money to pay for food, water and travel expenses. Many travelers were forced to stay extra nights in hotels, paying with their card and incurring fees in the process. Of all these people, it will be those who used an MBNA credit card that will be the happiest, as the card provider has announced it will be refunding any foreign currency exchange charges and cash advance fees that it's customer incurred while stuck abroad due to the volcanic ash cloud.

The Bank of America subsidiary is the first UK credit card provider to announce a refund policy of this nature, which stands to benefit a great many people. http://www.MBNA.co.uk is the UK's largest credit card provider with around 6 million customers and a further 1 million across Europe. The move will see potentially tens of thousands of pounds refunded to cards that were used abroad during the six days that British air space was closed.

In total it is estimated that around 150,000 British people were unable to return to their homeland after volcanic glass and mineral deposits resulted in mass flight cancellations. Motorway signs up and down the country told holiday-makers to turn back as airports such as Heathrow, Manchester and Edinburgh were completely shut down.

As well as MBNA refunding the credit card fees and charges, they say they will also look favorably on requests to increase credit limits due to unforeseen spends and to pay credit card bills late. President of the Bank of America's credit card services, Ian O'Doherty, said: "Thousands of travelers need to know we are here to help them during these difficult times." He went on to describe the adverse affect that such a situation can have on a holders card balance and they understand that the costs were no fault of the borrower.

Whether other credit card providers will follow MBNA and offer their customers lenient temporary terms and refunds of charges remains to be seen. But for those that had to fork out for trains, hotels, food and taxis, and had decided to go for one of MBNA's credit card deals, there is at least some respite available.