- An M&S Bank customer transferred to banks after it stopped offering current accounts
- Showing up with M&S Bank after he paid off his overdraft
- Despite giving money, he was constantly asked about the money.
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In early June I received a letter from Marks & Spencer Bank saying it would no longer offer current accounts and so I had to find an alternative bank.
I called and was told to use Switch service, which I did. I opened a new joint bank account at Lloyds with my wife – as she had a separate account with it – and completed the required online forms.
During this phone conversation with M&S Bank I was told that I have to arrange a fresh overdraft on the new joint account to cover the old account. My overdraft limit was £800 and Lloyds provided it without any problems.
Fast forward to the switching date in July, I could see that my direct debit had been transferred, but the balance in my old account with M&S Bank was still showing as minus £636.75. I tried to contact M&S Bank regarding this but got disconnected.
Problem: An M&S Bank customer was repeatedly asked for money which he had already transferred
Then I got a call from M&S Bank asking me to clear the dues which I did. It immediately showed up as ‘pending’ and the money was deducted.
Since then, I have been called several times by the bank, asking me to give the money despite doing so. Where’s my money – and why isn’t M&S Bank getting it? CD, via email
Grace Gosden, This Is Money’s consumer expert, answers: You didn’t feel the spark after M&S Bank managed to thwart your switch to Lloyd’s.
The firm announced in March that it was shutting down its banking services to focus on credit cards and digital payments.
The bank, which is half-owned by supermarkets and HSBC, said only a small percentage of its 3 million customers would be affected by the change at the time, closing all accounts in August.
This was because not many people used it as their primary account.
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Also, it revealed that it will be closing 29 of its in-store branches.
Once you got to know that your account was about to be closed, you asked M&S Bank how to switch to another bank as it was something you had never done before.
You have decided to open a joint account with your wife at Lloyds.
Initially, all seemed fine, your direct debit was transferred, however you could see that your outstanding overdraft amount was not transferred to your new bank.
You tried calling M&S Bank to explain it but you say there was no response.
However, then you received several calls from the bank asking you to pay the amount.
You have paid the amount in the same manner as you were advised that it will not be transferred automatically.
Despite this, you – in your words – continued to be ‘bombed’ with letters and phone calls from M&S Bank chasing money.
Although you explained that you paid for it, you were told that the payment was not visible because it was made recently and there was not enough time for it to reflect on the system.
M&S Bank customers who had to switch providers say they lost money they transferred
You also sent bank statements to prove that you had paid it as M&S Bank said it did not receive the money.
Unfortunately, you say you’ve spent hours on the phone trying to locate the money and are worried it could affect your credit score.
I contacted M&S Bank to see why it is having so much trouble finding your payment and why it keeps asking for money from you.
Luckily, he realized his mistake and has now offered you an apology and a £75 goodwill check.
A spokesperson for M&S Bank said: ‘On this occasion, the payment was not implemented correctly in the customer’s account, which meant that the debit balance on their overdraft was still visible. It has since been corrected and overdrafts have been approved.
‘We have also contacted the customer to apologize that the service experienced on this occasion fell below our normal high standards and to confirm that their credit file was not impacted.’
You are not the only one to have experienced this problem, another reader has also contacted to say that he/she experienced something similar.
Ms D set up a new account with Starling Bank and transferred all the money from her M&S Bank current account over time, but could not switch as her M&S account was a joint one and she was a single individual. Wanted to set up an account. .
After paying off his total balance on 30 August, he received a message on the 31st saying that another direct debit had been paid that day, so he had been drawn over £40.
At 11.15 pm on 31 August, Ms Dee transferred £40 from Starling to M&S Bank to zero out the balance and assume the account had been closed.
However, M&S Bank did not close the account as it said it never received a payment of £40 and therefore it was an overdrawn account. However, it paid £40 to the bank on 3 September into a Starling account, but could not explain why.
Between 3 and 6 September it made three more direct debits, again taking Ms. D into an overdraft and then demanding £180.
Fortunately, the customer managed to resolve the situation after talking to M&S Bank with account closure and overdraft written off, but this reflects some of the problems experienced by customers while switching accounts.
While these two issues have now been resolved, M&S Bank may need to ensure that they are on their mark to avoid further problems in future.
If you have faced similar problem with M&S…