Marks & Spencer created a financial association on a non-joint application
Comments
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Transformers wrote: »It is reasonable for the financial institution to create an association between an applicant and the person named by the applicant as an additional card holder on the account.
After all, if approved, the additional card holder would be spending money that the primary cardholder would be liable for.
If that's not a legitimate financial link then I don't know what is.
So - your GF entered your details in the application - why, if there was no intention to include you as a cardholder?
The blame for the association rests with your GF (in asking for credit and naming you as one of the recipients of a card for her account) and not with the financial institution.
I agree....I've just removed a financial association from an egg credit card opened nearly 10 years ago. I wasnt the named account holder but was added as a secondary cardholder. Even tho it wasnt a joint account, I still held a card for the account so a financial link was setup. Account was closed over 7 years ago so easy to do a financial disassociation and get the link removed.0 -
There would only be one reason for doing this, and that's to increase the chances of a) acceptance, and b) a half decent credit limit.Transformers wrote: »So - your GF entered your details in the application - why, if there was no intention to include you as a cardholder?0 -
Transformers wrote: »It is reasonable for the financial institution to create an association between an applicant and the person named by the applicant as an additional card holder on the account.
After all, if approved, the additional card holder would be spending money that the primary cardholder would be liable for.
If that's not a legitimate financial link then I don't know what is.
So - your GF entered your details in the application - why, if there was no intention to include you as a cardholder?
The blame for the association rests with your GF (in asking for credit and naming you as one of the recipients of a card for her account) and not with the financial institution.
Absolutely no it isn't, but it seems M&S are in agreement with you. They need reporting to the ICO about this. A named second card holder is not a financial associate.
I recently took out a secondary card for my daughter. She is a financial dependent of mine, but she is not financially associated; we have no joint accounts.
These card companies and utility providers are chancing their arm with this one and they need to be brought to book.0 -
I agree with GingerBob.
From my understanding financial association should only be created if both are liable for the debt. On credit card only main applicant is liable for the debt if defaulted.
If both of you have good credit rating then I don't think you will have issue obtaining credit.
My and my other half are financially associated due to joint mortgage and I have available card limit 80% of my annual income. My other half also has large amount of available credit but her Barclaycard application went through without any problems with decent credit limit.
Barclaycard did do unrecorded search on my credit report but that may be to look if I have any adverse data.0 -
Just an FYI update, I opened cases with the ICO and Ombudsman so we'll see what they both come back with.0
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When we check your details with a credit reference agency, a search/enquiry is registered to say that you've applied for credit today. As part of our checks, we link your name with individuals associated with you financially, and any previous names you've provided.
She agreed to those T&C's when applying and added you on the application. I don't see anything wrong with what M&S have done.
Just apply to un-link yourselves...this was covered in Martin's show this week.
To add to this further...For an application which may involve borrowing, your credit
reference agency records may be cross checked with others
who are financially linked to you because of other joint financial
commitments. This is known as a financial association and this
process enables lenders to form an accurate view of the existing
financial commitments of customers.
Where a joint personal application is made a new financial
association will be created and registered with the credit reference
agency, if this does not already exist.
M&S say they would only search your account if you have another financial link on your report. Is there?Debt As Of 19/3/2021: £16,973 | Current Debt: £9,322 | 54.9% Repaid0 -
She agreed to those T&C's when applying and added you on the application. I don't see anything wrong with what M&S have done.
Just apply to un-link yourselves...this was covered in Martin's show this week.
To add to this further...
M&S say they would only search your account if you have another financial link on your report. Is there?
No she didn't. She only 'agreed' that they could create a link with someone who is a financial associate, if not already linked. Being named as a secondary cardholder, or just being identified as someone's husband, does not constitute a financial link. M&S (HSBC) are taking the urine! This practice needs stopping, and only complaints to the ICO will stand any chance of sorting out this problem.0 -
How did M&S know your details to link you if your details weren't on the application form?0
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No she didn't. She only 'agreed' that they could create a link with someone who is a financial associate, if not already linked.
Is there already a financial link from an application for other credit? If there is would this be valid ground for them to search both?Debt As Of 19/3/2021: £16,973 | Current Debt: £9,322 | 54.9% Repaid0 -
Is there already a financial link from an application for other credit? If there is would this be valid ground for them to search both?
Yes, if there was a link, but they have no authority to create a link. That doesn't stop them, of course, and apparently M&S go ahead and create a link anyway. One might expect the CRA data validation procedures would stop this .... oh heck! I just remembered - CRAs don't implement meaningful data validation.0
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