M&S Credit Card Warning

Spendit_Sue

I’m gutted.  I took up an offer of a promotional rate of 0% in 2019 which ends in February 2022.  Last August I was offered a further balance transfer at 0% rate for 12 months, ending this month August 2021. I’ve been paying more than the minimum monthly repayment so I could clear the offer which ends this month.  However, I’ve just discovered that all payments have been allocated to the earlier balance transfer and nothing at all has been paid off the 2nd balance transfer which has the 0% rate ending this month and therefore I will have to start paying interest on the whole amount.   Also, M&S did not send me a reminder email advising the August promotional rate was coming to an end and instead it’s been added in small print on my statement this month. I thought that bad practice.  Especially as I had it in my mind it was December - that’s my fault 🤦‍♀️ 

Just thought I would advise others as it’s really disappointing. 

eskbanker

The advice being to read the Ts & Cs, especially clause 6.4?

Spendit_Sue

Yes, I realise that now.  However, it’s really disappointing to think that not a penny has been allocated to the latter borrowing and I’m just posting to advise others to be aware.  

Brie

M&S credit card BTs are a pain in the proverbial.  Unlike other cards they are not easy to monitor especially if you are also using the card for purchases.  (one of the few cards where you still retain your "56 days" no interest).

But I've had this on other cards as well where a BT for 24 months is taken and being paid despite taking a subsequent 12 month BT which ends sooner.  Takes a bit of juggling to avoid interest on the cross over month.

Spendit_Sue

They are not easy to monitor at all.  I now want to increase my direct debit to get rid of the balance quickly but it’s looking like I need to contact them to do this and can’t just adjust it online.  They definitely have less available information/card management tools online than other credit card apps I have.  

Brie

I wouldn't increase the DD as that means you don't get the full advantage of being 0% interest.

I wait til the day before the payment is due to be cleared and do a online faster payment to clear the 12 month BT.  

Or you should be able to do a one off payment online on the M&S website.

When doing these things I also always do an online message to get them to confirm what day and how much I need to pay.  That way if something goes wrong you can bounce it back to them as being their fault for giving you wrong information.

Spendit_Sue

Thanks, Brie, I’ll do that.  Still feel gutted that the initial BT still had another 6 mths to run at 0% but because of the extra I was paying in repayments it’s almost completely cleared and now I’m  just left with the full £1,400 BT which no longer has the 0% (23.9% now!)  however I’ll be reorganising other outgoings to clear it ASAP though. 

eskbanker

Spendit_Sue said:

Thanks, Brie, I’ll do that.  Still feel gutted that the initial BT still had another 6 mths to run at 0% but because of the extra I was paying in repayments it’s almost completely cleared and now I’m  just left with the full £1,400 BT which no longer has the 0% (23.9% now!)  however I’ll be reorganising other outgoings to clear it ASAP though. 

Would your credit status withstand getting a BT with another provider?  Not normally recommended to keep rotating BT deals over to defer the day of reckoning, but a short term arrangement to mitigate a cashflow issue would be a different story.... 

Spendit_Sue

Yes, I possibly could qualify for a BT with another provider but tbh I’m trying to reduce the number of cards I have and cancel them as I go.  One of the reasons I slipped up on the end date for the 0% offer this month is because I’ve too many to keep track of .  I now plan to reduce overpayments on another card to pay off M&S quickly as this is now the card with the highest interest rate at 23.9%.  I should manage to clear it within a month or two.   

Thank you both for your support.  I just needed to vent my frustration.  I’ve made some stupid choices over the years but determined to clear these debts myself and not go down a debt repayment route, etc. 

[Deleted User]

Spendit_Sue said:

They are not easy to monitor at all.  I now want to increase my direct debit to get rid of the balance quickly but it’s looking like I need to contact them to do this and can’t just adjust it online.  They definitely have less available information/card management tools online than other credit card apps I have.  

Every statement would show the balance that was going down and the other balance not changing, as much of a pain as it is that they allocate funds in this way, rather than to the transfer that runs out sooner, it is easy to monitor.