Interest REFUND on M&S Loan

jamesd

Steff wrote: »

Don't get me wrong, I am hugely thankful for this unexpected money, but if they voluntarily gave us this, should we be pursuing it further or just say thanks and shut up?

They didn't voluntarily do it. They broke the law and the cost set in law is a refund of all interest covered by each annual statement issued to you that didn't comply with the law.

Steff wrote: »

I have three years left on the loan in question and cant understand why they have given me money back?...

They will probably get it right for the next three annual statements so you won't get a refund for the time covered by them. Probably.

Workingmumoftwo

Likewise I also received a refund from M&S yesterday (eternally grateful!) and was contacted some time ago now because Northen Rock (as they were then) had a similar issue with my mortgage statements... and received £ which was simply credited to my account.

martins16

Same thing happened to me, just wondering if anyone knows if its a good idea to put this payment towards clearing the loan or am I best holding on to my savings still got over 2 years to run on the loan

stator

martins16 wrote: »

Same thing happened to me, just wondering if anyone knows if its a good idea to put this payment towards clearing the loan or am I best holding on to my savings still got over 2 years to run on the loan

That would depend if you have any more expensive debts (like credit cards) but generally paying off the loan would be a good idea.

jamesd

Just compare the interest rates after tax effects. You probably can't beat the loan with savings, you may be able to beat it with investments if it's sufficiently cheap.

iaint_2

Newbie here. Go easy please

I got a £342 refund yesterday off M&S too and it got me checking other things.

Me and my wife have an unsecured personal loan with Nationwide that was taken out in August 2011. Two yearly statements for 2011 to 2012 and 2012 to 2013 fail to mention that we had the right to make partial repayments.

The Nationwide statement for August 2013 to August 2014 does however have the partial repayment information included.

Are we entitled to interest refunds ? Should we write to Nationwide and make them aware of the two non compliant statements as they have made the same mistake that M&S have.

TBeckett100

werent M&S loans provided by HSBC? Maybe we'll hear from them soon.

Strokerl1te

Noticed that 1357.00 refunded back into my account today from M&S. Rang them and they explained that they should have written to us, but theyve been swamped with people ringing asking why their bank accounts refunded without prior notification.

Been assured that its our money to keep and that they wont be asking for it back. Woman at M&S said it was cheaper for them to refund us now, rather than refund us at the end of the loan.

Nice early xmas present.

davidscot

Same here, got a letter from them Friday. Checked bank account later that day and there was a refund from M&S.
Gave them a call and was informed that they had not provided the correct information so was entitled to a refund. T&C's of loan remain the same. Early xmas !!

devon_lad

I also had this refund at the end of last year.


Coincidentally, my father-in-law had a similar loan which he had taken out within a month of me getting mine. I only know this because he died in 2013 and I managed his financial affairs - which included settling this loan at the start of 2014.


Having had this refund myself I gave M&S a call at the end of last year to ask if he was due the same refund. I was told he was due a payment but it might take a few months - but they also stressed that the payment was a "courtesy" payment and not mandatory.


Still waiting to hear anything from them a year later - I hadn't chased it because I didn't think I had any grounds to pursue it - but judging by some of the above comments it sounds like we have a legal right to demand it?


Can anyone clarify?