M&S Credit card cancellation

sahashmi

Hi,

Today I rang Marks and Spencer bank customer service to cancel my credit card that I have for the last 2 years. Customer services refused to cancel my card citing the reason you have to pay full balance first before we can cancel the credit card. What is the official policy of Financial services authority?

M&S card is issue by HSBC. Recently I cancelled my HSBC card with outstanding balance and paid this balance after two statements.

Thanks

YorkshireBoy

You can't end a credit agreement whilst ever credit is still being provided! Clear the balance to zero, wait for a zero balance statement (ie after you've cleared any residual interest due to revolving credit), and then call to cancel.


The FSA doesn't exist anymore.

sahashmi

How about 9 other credit cards (See below) that I cancelled in past with outstanding balance and paid the balance as the statement issued?

5 MBNA
1 Sainsbury
2 HSBC
1 Natwest

All these banks cancelled my credit straight away with outstanding balance.

YorkshireBoy

sahashmi wrote: »

All these banks cancelled my credit straight away with outstanding balance.

What do you mean by "cancelled my credit"? Do you mean you couldn't use the cards anymore, but still had to clear the balances as per the T&Cs?...or do you mean they formally "closed" the accounts?


I can't see the point in the first option because you could do that yourself...with some willpower.

sahashmi

I am not here to get lecture on willpower!! Also I did not use the word "close account" in my first post!

I am only intereted to know what are the cancellation rules. Ofcourse cancel the card but still clear the balance as per the T&Cs.

YorkshireBoy

sahashmi wrote: »

I am only intereted to know what are the cancellation rules.

Then why not read the relevant section of your credit agreement with them? After all, that has been written by lawyers to ensure compliance with all current regulation/legislation.


If you don't have it/have it to hand there's a copy on their website. I'd normally post a link (even detail the specific condition) but somehow I don't think you'd be grateful so you're on your own!

sahashmi

No problem. I will deal this issue by myself. Customer services failed to tell me T&Cs clause.

I will check T&Cs by myself and if needed speak someone in M&S higher ranks. Thanks for your help!

DevCoder

You can't cancel a credit facility (line) with a drawn down amount outstanding. This isn't so much a FCA ruling as an accountancy IFRS norms practise (there would be no off balance sheet credit facility to offset the balance sheet "loan"/"credit balance")

sahashmi

krisdorey wrote: »

You can't cancel a credit facility (line) with a drawn down amount outstanding. This isn't so much a FCA ruling as an accountancy IFRS norms practise (there would be no off balance sheet credit facility to offset the balance sheet "loan"/"credit balance")

Not a relevant answer!!

DalePie

sahashmi wrote: »

Not a relevant answer!!

No one asked you to register for this forum :cool:

Armorica

If you don't like the (right) answers that you get...don't ask the question

Different firms will have different meanings of the term cancel in practice. Some might cut your limit, some might block the card. You could also just cut the card up yourself unless you are worried about someone else using the details.

As others on the thread have said, cancelling a card isn't really the point. A credit agreement is not terminated until you have paid it off, or unless it is written off/transferred to another party.

(And the FSA ceased to exist last year and wasn't responsible for lending under the consumer credit act, and MBNA isn't a bank in the UK, it's an approved payment institution - it doesn't have a regulatory permission to accept deposits)