The Department for Enterprise has asked Tesco Bank for the rationale behind the withdrawal of its credit cards from Manx customers.

The situation was revealed in this week’s Isle of Man Examiner.

The government says there ’appeared to be no legal prohibitions under UK law that prevented UK regulated credit card providers from issuing cards to residents’.

A spokesperson for the department said: ’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.

’Government was not party to the recent decision by Tesco Bank plc to write out to existing card holders giving notice of cessation of services, but the DfE has since initiated direct contact with Tesco Bank to better understand their rationale for withdrawing this service for Isle of Man residents.

’The department understands this decision to be part of a longer term withdrawal of services for all non-UK customers and therefore citizens across all three Crown Dependencies have been affected and discussions continue.’

DfE has said it will continue to liaise with the local banking community as it’s aware of a number of banking groups with a presence in the island that continue to provide credit cards.

The spokesperson added it will ’explore a full range of options to ensure consumer services, such as credit cards, are available in the island where practically possible’.

HSBC has since confirmed it is fully open for considering applications for credit cards from Manx residents and potential applicants should contact its branch.

The Isle of Man Financial Services Authority will also continue to monitor the availability of credit to residents from banks licenced in the island.