M&S Bank forcing early closure of Regular Saver. Paying just 1.08% net !

badger09

rastler wrote: »

HSBC closed all my accounts last year after 32 years with them. No explanation, just didn’t want me any more (probably as they had never made a penny out of me over those years).

However, when they closed my HSBC Regular Saver early, they paid me the full 6% rate as they conceded it was them that was closing it and not me. So I didn’t argue with them and was relaxed (just slightly annoyed) about it all.

I suspect that is your answer. Same banking group.

M&S are clearly within their rights to terminate any relationship with you, but I would argue most strongly that they should pay the full rate on the Regular Saver until the date of closure. In my complaint, I would include the fact that HSBC did this.

Good luck and please let us know how you get on.

Flobberchops

Obvious case of financial loss there which I hope you could argue against, even if they've decided they're within their rights to terminate the account.

Keep us posted.

eskbanker

rastler wrote: »

But what I object to most strongly, and what I will fight all the way, is that they have let me pay in the maximum every month for what will be 10 months when they forcibly close my Reg Saver., and they intend to just pay me interest at the early closing rate. That, I would argue, is illegal. I could have invested the money elsewhere instead of messing about with 1% over 10 months.

badger09 wrote: »

I would argue most strongly that they should pay the full rate on the Regular Saver until the date of closure.

Flobberchops wrote: »

Obvious case of financial loss there which I hope you could argue against, even if they've decided they're within their rights to terminate the account.

But given that they're contending that OP has breached Ts & Cs then they're just following para 9.4 of those same Ts & Cs, as quoted by OP in post #1.

Challenge the alleged breach of the Ts & Cs by all means (I'm sure we all would) but the lower interest rate is simply an inevitable consequence of that closure decision rather than a separate point for arguing.

Flobberchops

eskbanker wrote: »

But given that they're contending that OP has breached Ts & Cs then they're just following para 9.4 of those same Ts & Cs, as quoted by OP in post #1.

I see your point, but M&S could simply respond that it's a policy-based decision and decline to give further explanation, as seems to be the tack they're taking.

The fact that OP has been impacted financially by this decision seems to me to be much more fertile grounds for making a complaint and hopefully receiving some or all of the difference in earnings, regardless of who is ultimately in the right.

At least that's my perspective, I may well be wrong, and M&S may take a completely different view too of course.

diamonds

I would complain to M&S Chief Exec, they may not own their own named bank but the damage HSBC are causing to the M&S brand and their 50% profit of M&Sb is enough for any CE to take action with HSBC and their running and ruining the long term M&S brand for customers, it is most probable HSBC is in breach of contract by bringing the M&S brand into public disrepute.


All of you suffering by HSBC's actions email the CE of M&S and complaints dept


marc.bolland@marks-and-spencer.com

zolablue25

rastler wrote: »

There is no requirement to pay in a certain amount into the current account each month (although I do and it then goes off to the Monthly Saver).
.

There's a minimum requirement of £1000 a month to be paid in to the current account.That has been on for some time.

Edit: Sorry, no. That's for the £10 pe rmonth on the M&S gift card. My mistake.

rastler

As requested here is the final update on how this was settled.

After getting the Ombudsman involved, M&S gave me a £30 payment for keeping me on the phone unnecessarily.

They closed the account early after 10 months. Then they made a payment equal to the full 6% of interest that I would have received if they had kept the account open for the full 12 months.
So this was without me making the final two payments.

They refused to accept they had closed the account without reason (although they also refused to tell me why they had closed the account).

They finally sent me a letter saying they were sorry that I wanted to close my account!

masonic

Seems like a fair outcome.

Hopefully whatever has spooked HSBC group will not cause you the same difficulties at other banks.

Blue_Max

masonic wrote: »

Seems like a fair outcome.
Hopefully whatever has spooked HSBC group will not cause you the same difficulties at other banks.

Good observation by 'masonic'
It may be that your reputation was damaged by a fruadster using your name.
ID theft is far too common.

OP is adviced to dig into his credit rating, etc
If you were to join https://www.noddle.co.uk you can see a very detailed credit report and much more.

Get to the bottom of it and sort it out for good.

rastler

Blue_Max wrote: »

Good observation by 'masonic'
It may be that your reputation was damaged by a fruadster using your name.
ID theft is far too common.

Thanks it hadn't occurred to me that my ID might have been compromised. But I don't think it has. My Experian Score is 979 out of 999. The final M&S letter said I was entitled to take this further with the Ombudsman within 6 months. Not sure if I should bother though as surely all banks can get rid of customers without giving reasons if they don't want them? I just think they don't want me because they don't make money out of me.