There is nothing to prevent UK banks from issuing credit cards to island residents.
The financial regulator said it is continuing to monitor the provision of credit services here.
This comes after amid confusion for customers after a number of providers withdrew card services, including from this week American Express.
In April, Barclays Bank emailed customers to announce it would be withdrawing its credit card services from the Isle of Man. But hours later it said it had made mistake and services for existing cardholders would be maintained – although anyone applying for a new card would have to have a permanent UK address.
Then in August, American Express also backtracked after telling Manx customers it would be cancelling their cards as from October 2.
It then reassured them the letters were sent in error and services to existing card holders would be maintained. However, to apply for a new American Express card you must have an address in the UK.
But in September, Amex emailed one customer after they complained about the closure of their card account to say the decision could not be reversed.
It said that important changes to its terms and conditions from October 2 included a requirement to have a residential address in an American Express approved list of countries – which excludes the Isle of Man.
The email added: ‘American Express card products will no longer be available to customers who reside in Crown Dependencies. I am sorry if this has caused you inconvenience and I do appreciate that you are a long tenured member of American Express. We are, however, unable to reverse this decision.’
Now Amex has clarified its position, saying services will only be withdrawn for current holders of its International Currency Cards.
A spokesman for the Financial Services Authority said: ‘There are no regulatory or legal restrictions that prevent UK regulated providers from issuing credit cards to Isle of Man residents.
‘The availability of credit card services to Isle of Man residents is ultimately a commercial decision for providers to consider based on a range of factors. Providers who have no presence in the Island are not regulated by the Isle of Man Financial Services Authority. The Authority is therefore unable to comment on the recent customer announcements made by Amex.
‘The Authority continues to monitor the provision of credit services to Island consumers from banks licensed in the Isle of Man. This includes the availability of credit cards from the wider banking group.’
A spokesman for Amex said: ‘We are committed to providing all our card members with a range of cards and benefits that suit their needs. Like other providers in the industry, our UK consumer and small business Cards, and their benefits, are designed for UK residents, meaning that we require any new applicant to have a permanent UK address.
‘Earlier this year we informed card members with American Express International Currency Cards (ICCs) that these specific cards will no longer be available to those who reside in the Crown Dependencies. We continue to support our other card members in the Crown Dependencies (who do not hold an International Currency Card), as usual.’