Bank withdraws charity credit card scheme

02 February 2012 15:54:43

Lloyds Banking Group will no longer offer charity credit cards.

Consumers with a Halifax and Bank of Scotland charity credit card will need to come up with an alternative way to make charitable donations in future, as Lloyds Banking Group has decided to withdraw the cards from circulation. The cards have raised millions of pounds for charities over the years, but the bank no longer regards them as cost-effective. Existing cardholders will now be given standard cards, but may choose to compare credit cards from other providers or consider other ways to support their favourite charities.

Lloyds Banking Group confirms card withdrawal
Lloyds Banking Group has confirmed that it plans to withdraw all Halifax and Bank of Scotland charity credit cards within the next few weeks. The cards appealed to many consumers, as they enabled a small charitable donation to be made when making purchases.

The bank says it made the decision to withdraw its charity credit cards because they did not represent a cost-effective way of donating to charity, despite raising millions of pounds for charities such as Cancer Research UK and the NSPCC over the years.

A spokeswoman for Lloyds Banking Group confirmed: "Following a recent review, which noted the limited demand for charity cards in recent years, we have decided that we will no longer offer a charity credit card." She revealed that charity cards accounted for less than 1% of the bank's credit cards and insisted the bank would continue to work with its charities in the future.

Charity cards still available from other providers
A number of other providers, including MBNA and the Co-operative Bank, still offer charity credit cards, giving consumers a number of possible options if they choose to compare credit cards. The latter has confirmed its commitment to charity credit cards, with head of partnerships Colin Welby insisting: "Our values are aligned to the charity sector and we plan to maintain our long-standing commitment to them, which goes beyond providing financial products."

However, David Black, a banking analyst at financial analysis group Defaqto, has suggested an alternative for those wishing to donate to charity. He told the Daily Telegraph: "I can't help thinking that both you and the charity would get a better deal if you chose the most competitive credit card available from the entire credit card market - so for example the one with the longest 0% introductory deal if that's what you're after - and then make a donation to the charity separately."

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