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

bigadaj

rastler wrote: »

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.

Your experian score is irrelevant, it's the credit file that is important. If you're not having problems elsewhere then I'd be inclined to agree that it's just their opinion, though it does seem rare for banks to not transact with people who don't make them money, as evidenced by many people on these forums.

Blue_Max

rastler wrote: »

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.

Over the years, I have had several accounts that I have not used for over an year or more and with balances under £5. None of them ever got closed by the banks. Sometimes they send you a letter to warn you that the account may get closed, if not used. When I do, I make a small transfer to the account and that is end of the matter for long time.
Sometimes, I setup an small SO into the account and two small DDs to charities; so that the account may be used for switching at a later date.

With computers and databases, it cost the banks very little to keep an account open. Many do not send a paper statement unless there is a transaction; so no cost to them.
Account holders are part of their database for marketing.
The bank has nothing to gain by closing an account unless there is an issue.

The noodle report has many pages and include much more than credit scores.

msallen

Blue_Max wrote: »

Over the years, I have had several accounts that I have not used for over an year or more and with balances under £5. None of them ever got closed by the banks. Sometimes they send you a letter to warn you that the account may get closed, if not used. When I do, I make a small transfer to the account and that is end of the matter for long time.
Sometimes, I setup an small SO into the account and two small DDs to charities; so that the account may be used for switching at a later date.

With computers and databases, it cost the banks very little to keep an account open. Many do not send a paper statement unless there is a transaction; so no cost to them.
Account holders are part of their database for marketing.
The bank has nothing to gain by closing an account unless there is an issue.

The noodle report has many pages and include much more than credit scores.

But in this case the account is costing them the funding for a 6% regular saver.

Blue_Max

msallen wrote: »

But in this case the account is costing them the funding for a 6% regular saver.

The banks lend money to customers at a higher rate than they pay to depositors or than they borrow it. The difference, known as the margin or turn, is kept by the bank.

Lending takes the form of overdrafts, bank loans, mortgages (loans secured on property) and credit card (18.9% with M&S) facilities. The bank will work out the cost of making the funds available to the borrower and add a profit margin.
With accounts such as the Regular Saver, where the money is tied up for 12 months, they use 'gearing' and lend out many times more than paid in.