Tesco Bank to close Isle of Man credit card accounts in November

About 1,200 people on the Isle of Man who use Tesco Bank credit cards have been told their accounts will be closed later this year.

Tesco, which has a supermarket in Douglas, said it needed to avoid the risk of providing financial services to non-UK customers following Brexit.

Accounts were due to be scrapped in May, but will now remain open until November following government talks.

A Tesco spokesman said this would give "time to secure suitable alternatives".

"Tesco Bank is a UK bank, and this means many of our products, including credit cards, can only be acquired by those living within the UK", he added.

Tesco said most of its Manx customers either acquired credit cards before 2012 - when Tesco Bank was a joint venture involving RBS - or had opened an account in the UK before later moving to the island.

Enterprise Minister Alex Allinson said he was grateful for the extension.

His department will work with other local banks and card providers to "explore a range of options to ensure consumer services" are available, he added.

A government spokesman said there "appeared to be no legal prohibitions under UK law" that prevented cards being issued to Manx residents.

Tesco Bank has confirmed its customers can continue to manage accounts online after they are close on 3 November, and pay off outstanding balances in line with existing terms and conditions.

Despite the reprieve for credit card customers, savings accounts held with the supermarket will be closed in May.

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