M&S Credit Card

aneehs

I had a temporary £15k spend on my M&S Credit Card I planned to pay off on the sale of a property which didn’t go ahead because of Covid-19. The interest on the Credit Card was 18.4% = £300pm. I applied for a M&S personal loan 2.9% = £265pm and was refused. After a phone call with M&S to ask them why they couldn’t transfer me from the card to the loan they said I didn’t meet theIr affordability criteria. I argued I had no missed payment history on my credit card, had Covid-19 not happened I would have been able to repay the card in full.   I told them I had banked with M&S for 10 years, they told me my banking history with them couldn’t be considered for the loan. I told them their 18.4% interest on the credit card was going to cause me financial hardship. The person I spoke to was quite adamant the loan wasn’t an option so I made a complaint. Within 48 hours M&S Complaints Manager phoned me, I explained everything as above, he told me there were no grounds to uphold my complaint, then he created a long silence on the phone and hung up on me.
Then I received an income/expenditure form to complete via email so they could ascertain how much I could pay towards my card. It was quite clear I could pay £300. That was returned to them over two weeks ago and I’ve not heard from them since.

I told them they were profiteering from Covid-19, refusing me the loan at 2.9% interest and taking 18.4% from me on the credit card. They didn't have an answer to that.  Anybody got any ideas where I can go from here?

LordSomebody

Another lender?

The_Urbanite

aneehs said:

I had a temporary £15k spend on my M&S Credit Card I planned to pay off on the sale of a property which didn’t go ahead because of Covid-19. The interest on the Credit Card was 18.4% = £300pm. I applied for a M&S personal loan 2.9% = £265pm and was refused. After a phone call with M&S to ask them why they couldn’t transfer me from the card to the loan they said I didn’t meet theIr affordability criteria. I argued I had no missed payment history on my credit card, had Covid-19 not happened I would have been able to repay the card in full.   I told them I had banked with M&S for 10 years, they told me my banking history with them couldn’t be considered for the loan. I told them their 18.4% interest on the credit card was going to cause me financial hardship. The person I spoke to was quite adamant the loan wasn’t an option so I made a complaint. Within 48 hours M&S Complaints Manager phoned me, I explained everything as above, he told me there were no grounds to uphold my complaint, then he created a long silence on the phone and hung up on me.
Then I received an income/expenditure form to complete via email so they could ascertain how much I could pay towards my card. It was quite clear I could pay £300. That was returned to them over two weeks ago and I’ve not heard from them since.

I told them they were profiteering from Covid-19, refusing me the loan at 2.9% interest and taking 18.4% from me on the credit card. They didn't have an answer to that.  Anybody got any ideas where I can go from here?

If you go to another lender and get a no fee 0% balance transfer card to cover that amount, M&S bank won't even be getting 2.9% interest from you - they won't get anything and you'll save for as long as the interest free period lasts.

Ultimately the bank decides what business they're prepared to do - sometimes things don't always go the way we hope. From their view it might be risky because technically you could spend the loan on something else once you have it. You know you won't do that but unfortunately they don't.

Good luck with it, hope you get a cheaper deal on your borrowing sorted.

aneehs

Thanks for your comments. Seems to me that if a customer can afford to pay 18.4% the banks aren’t going to offer a loan at 2.9%.  They offered me a three month payment holiday which I refused because (1) I could afford to make the payments; and (2) at the end of that period I was going to be three months further in debt. I’ve had a look at balance transfer options, scarce on the ground and with a small credit facility. The credit debt accrued was money I spent on the property I was selling.  I have a small mortgage on that property, tried a re-mortgage to include the credit card debt but nothing on offer if the tenancy hasn’t been for at least six months. My broker told me yesterday all lenders were the same.  The buyer became the tenant when lockdown happened, Registers of Scotland closed the Property Applications Record, the sale couldn’t go ahead. She’s an NHS frontline worker. In July the tenancy will have run for six months. Looks like I’ll have to take the hit on the credit card till then, only options are (1) I remortgage then and continue to receive rent, or (2) hope the Applications Record re-opens and the sale can proceed.  I looked into the Government interest free loan, I have another buy to let and a mortgage of £90pm which is being paid, the tenant hasn’t paid rent since March, I’m not entitled to the loan because (1) I haven’t asked, and been refused, a mortgage payment holiday.  Affected by Covid-19 but no financial help for me.

[Deleted User]

aneehs said:

Thanks for your comments. Seems to me that if a customer can afford to pay 18.4% the banks aren’t going to offer a loan at 2.9%.  

They will, but only where the risk is acceptable.

You'll need to pay it off the old fashioned way until your situation improves.