Volkswagen, MBNA Shift Cobranded Card Incentives

Volkswagen of America Inc. and MBNA Corp. are changing the terms on their four-year-old automobile rebate credit card.

Beginning July 1, cardholders will no longer be able to earn points toward the purchase or lease of a new Volkswagen, according to letters sent out to cardholders.

"Volkswagen reevaluated the program and decided to amend the enhancements," said Peter Frank, a spokesman for MBNA of Wilmington, Del.

MBNA and Volkswagen will continue to offer the cobranded card, but with radically different features: instead of earning rebates on a car, cardholders will be eligible for a 20% discount at more than 7,000 restaurants, 10% discounts on catalogue purchases, and a new collector series of Volkswagen Visa cards with images of various models.

Officials at Volkswagen, a subsidiary of the German auto company, could not be reached for comment.

Volkswagen is the latest of several auto manufacturers to pull the plug on a card rebate program. Both General Motors and Ford Motor Co. have scaled back or eliminated benefits after deciding their card programs were costing too much.

Until it expires, the Volkswagen card offers 5% back on purchases, up to $700 in rebates a year and $3,500 over five years.

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