High street bank pays compensation to thousands of customers after credit card delays left them waiting up to TWO MONTHS
THOUSANDS of M&S banking customers have been offered compensation after facing eight-week delays, The Sun can reveal.
It is understood a large number of M&S customers who applied for credit cards over the last few months were left waiting up to two months to hear back.
The banking arm of the high street giant has been inundated with credit card applications since November last year.
M&S Bank has some of the most competitive 0% credit card offers in the UK.
Martin Lewis's Money Saving Expert (MSE) rates its 0% card second among its top recommendations, as you can earn M&S points on spending and it offers up to 20 months at 0%.
However, the surge in recent applications is understood to have created a backlog, leaving thousands of customers waiting months to hear whether their application was approved.
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The delays meant many households were left in the lurch over the Christmas period.
This is because when you apply for a credit card, you shouldn't apply for another one straight away as each application leaves a "hard search" on your credit report which can damage your credit score - particularly if you then don't get accepted.
M&S Bank usually states customers should hear back within five working days, although many customers receive an instant acceptance.
A spokesperson for the bank, which has around four million customers, advises that customers should typically receive their new credit card via the post in under two weeks.
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However, The Sun has heard from a number of customers who have waited as long as eight weeks to hear anything at all after submitting an application.
Many of those who applied towards the end of last year were hoping to get their credit card to use over Christmas.
But the backlog meant many didn't hear back until well into the New Year, meaning they were stranded without credit over the festive season.
One customer said: "I applied for a credit card and now I’ve been told there’s a backlog of 4-6 weeks, which is no good to me.
"Trying to apply with a different company now could be problematic, as they’ve already done a search on my credit file. I should have been told this at the point of application."
Another said: "I applied around six weeks ago and heard nothing at all, then out of the blue received an email stating I’d been accepted and would receive my card shortly. Definitely not impressed with their admin!"
M&S Bank is now contacting affected customers to apologise and offer them compensation for the long delays.
In an email to one customer, seen by The Sun, the bank offered them an additional 500 M&S Rewards Points to make up for the delay.
This is equivalent to around £5 worth of cash to spend in-store.
The email said: "We're very sorry your recent credit card application took longer than it should have.
"To thank you for your patience, we're adding 500 extra M&S Rewards Points to your M&S Credit Card account, worth £5 to spend in M&S."
A spokesperson for M&S Credit Card said: "The M&S Credit Card continues to be extremely popular, and the majority of customers whose application is successful will typically receive their new card via the post in under two weeks.
"However, the time it takes to complete an application can sometimes vary depending on the information needed and how soon it is received and processed.
"We apologise if some customers have experienced a delay to their application.
"While we always aim to keep customers updated throughout the process, our live chat team are also available to support with any questions."
How can I get compensation if delays have left me out of pocket?
If you feel you've been left out of pocket by delays by a business, first take your complaint to them.
Say in writing that you're making a formal complaint so that they take it seriously and explain how you think you've been treated unfairly.
It's a good idea to keep evidence. For example, if you're given an expected time frame to hear back after applying for a credit card and it's been far longer, you can show the original correspondence to the company.
Say how you would like the issue to be resolved - for example, if you would like some compensation to cover any money you may have lost because of delays.
If you're not happy with the firm's response, you may be able to escalate your complaint.
If your gripe is with a financial company, you can usually take it to the Financial Ombudsman Service (FOS) for free.
The FOS will look at all the evidence and decide whether you lost out as a result of a mistake or unfair treatment by the business.
You must complain to the company before you can take it to the FOS, as it needs to give you a "final response" letter. This is where it makes a final offer to resolve the situation.
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If you receive this and aren't satisfied, you need to complain to the FOS within six months.
You can make a claim online by visiting financial-ombudsman.org.uk/make-complaint or call 0800 023 4567 to give the details of your complaint over the phone.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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