Now Santander want to charge a dormancy fee on my Debenhams store card

Roger1

I've just received a snailmail message headed Important Cardholder Information from Debenhams Personal Finance, a trading name of Santander. It's tidying up various legal bits and pieces (allocation of payments etc) BUT there's a nasty sting in the tail.

If I don't use the card or have a zero balance for six months, Santander say they have the right to cancel my account or charge a £10 dormancy fee (or both?). Martin has already mentioned a dormancy fee for the Santander Zero credit card, and apparently they haven't charged any cardholders yet.

But a dormancy fee on a store card? :eek: Hello, I can only use the card at Debenhams!

Given Santander's abysmal customer service record, nothing surprises me. However, I do not understand how a store card can be lumped with a dormancy fee.

I've posted separately about the Santander numpties not taking a direct debit payment for this account and charging me £12 plus interest for their mistake. Is it too much to hope that they've made another mistake this time?

I don't like the way they have included this change (which never applied to the previous bank) tucked away in thousands of small print words.

Rikki

Use the card to pay for something and then pay it off immediately. You pay balance in store by cash.

If you don't use the card why have it?

Roger1

Rikki wrote: »

If you don't use the card why have it?

We do use the card, though I object to having to watch the clock.

Since you ask, we still receive interesting discounts on our shopping based on our status with Debenhams. It would be silly not to use the discounts when we can.

But it's still a store card with the unwelcome added extra of a potential dormancy fee.

callum9999

Roger1 wrote: »

We do use the card, though I object to having to watch the clock.

Since you ask, we still receive interesting discounts on our shopping based on our status with Debenhams. It would be silly not to use the discounts when we can.

But it's still a store card with the unwelcome added extra of a potential dormancy fee.

True, but the card isn't really designed for that purpose. They want customer loyalty etc., something they clearly aren't getting off anyone who doesn't shop there at least once every 6 months.

Roger1

callum9999 wrote: »

True, but the card isn't really designed for that purpose. They want customer loyalty etc., something they clearly aren't getting off anyone who doesn't shop there at least once every 6 months.

Interesting interpretation. I thought it was to allow me to shop at Debenhams without such restrictions. And we do shop there. I don't want to set the stopwatch running each time the direct debit is collected.

The card has had no such fee until now, and they slipped it in without drawing attention to it. This stinks. It's Santander, I know, but it still stinks.

Do you know of any other cards that charge a dormancy fee, other than the Santander Zero card? I don't.

RadoJo

I suppose this is their way of discouraging infrequent shoppers from having the card - if a card is not used every six months, the cost of administering it presumably makes it financially non viable for them to continue to offer the card to those users. Although I can see how this is annoying for you, I presume this is exactly what they are hoping for - either you decide to order from Debenhams more regularly, or cancel the card and stop taking advantage of the discounts that it offers. Are the savings you get worth the potential dormancy fee?

Tixy

To be honest I expect that more cards will start charging a dormancy fee. In the same way some might start charging annual fees like they all used to.

The problem is people leave accounts open and unused for years and that adds up to a huge exposure for the banks. And means they are required to have higher financial resources.

Having the dormancy fee means people will be more inclined to close accounts they no longer use, or will pay the fee or use the card meaning the bank will make money from it.

Roger1

RadoJo wrote: »

Are the savings you get worth the potential dormancy fee?

Good question. In the end, this is what it boils down to.

We do use the card (at least, one of us does). The 6-month period is not in itself a problem, it's just that it could be.

This is something new and almost unannounced. How many of us read these notices in full? This one was 8 pages long and I did read much of it because it came from Santander and as so often reported, their record and their respect for customers are seriously deficient. Glad I did.

R34GTT

Slightly concerning as I too have a Debenhams card but not received any notice yet. Are you sure you can only use your card at Debenhams? I rarely have used it elsewhere but mine is just a Mastercard for use anywhere. I also kept hold of it as there are often 10% off card holder offers in the post.

[Deleted User]

Most Debenhams cards are Mastercards these days. Those who don't make the cut for the Mcard get offered the basic storecard.

pinkfluffybabe

This is interesting - Santander also run House of Fraser storecards, I wonder whether this is on the way with them too.

There is nothing wrong with not using a card in a while, but from a money making point of view they will want you to be using it. Inconvenient though if you randomly get hit with £10 because you've not been shopping in a while.

If Frasers do this I will be getting rid because I've had a change in circumstance and don't shop there as often as I used to (and I'm not being hassled into doing so)!