M&S Credit card cancellation

Gentoo365

Sahashmi seems to want to 'cancel' the card not the credit agreement. Like when you have a second card and you cancel that one. Except cancel the one and only card.

Also, the mention of FSA was clearly a reference to the regulator, so while they are not called the FCA it should not have caused confusion.

It is a pity that when some people ask questions on here there are berated for not knowing the 'basics'.

Under the T&C (section 9c) M&S state:

c) This agreement will also end when either of us gives notice in writing to the other and where you end this agreement, when you cut all Cards and Cheques into four or more pieces and dispose of them.

We will give you two months’ notice if we end this agreement under this clause 9c).

d) If this agreement ends:
i) you must ensure there is no further use of the Cards and Cheques, and cancel any payment authorities and standing orders;
ii) you will be liable for transactions made before or after this
agreement ends (apart from any referred to us for authorisation
after it ended);
iii) the terms of this agreement will continue to apply until we have been paid in full; and
iv) we may require immediate repayment of the balance on the Account

note the *may* in 9(d)(iv)

This means that if you cancel the agreement you lose the 2 months notice period which they have to give to demand the full balance.

The regulator would probably consider it unfair if they demanded the full balance if you were not in default. Also you probably have statutory protection. However those are the t&c.

So as above it is probably best just to cut the card up and not use it. Also, if they send a letter about increasing the interest rate on the card, use the guides on this website to reject the rate rise. As you do not plan to use the card this will not cause problems to you.

The main thing here is that you need to pay it off before you can close the account.

In my opinion there should be a way to cancel a card, and just have the existing debt payable, but not all banks will have the same terms and conditions and unfortunately it is therefore required to read them.