Menu
08/10/2003
M&S backtracks over &More credit card after OFT probe
Marks and Spencer Financial Services (MSFS) has changed the way it will offer to replace its store cards by the &More credit card after action by the Office of Fair Trading.
MSFS had sent out letters to many card holders saying that its store card would automatically be replaced by the &More credit card unless card holders objected. Under section 51 of the Consumer Credit Act 1974, it is "an offence" to send a credit token to a consumer unless it has been requested in writing, the OFT said.
MSFS considered that it was not contravening the law because it was not supplying a new credit token but sending a replacement card as a result of a variation to the existing store card agreement. The OFT view was that MSFS did not have the right to change one type of card into another in this way.
MSFS has agreed to make changes to its plans, and all store card holders being sent the new &More card will now be told that, if they wish to keep their store card, they need take no action.
In addition, the OFT has challenged a standard term in the MSFS store card agreement that purports to give MSFS an "unrestricted unilateral right" to change the terms of the agreement. The OFT considers that this term was legally unfair and M&S has, without accepting the OFT's view, given the OFT an undertaking that it will amend the challenged term to limit its applicability.
John Vickers, OFT Chairman, said: "Inertia selling of credit can have damaging consequences for consumers. In this case Marks and Spencer Financial Services has agreed to take practical steps so that consumers will move from store card to credit card only if they positively make that choice."
(gmcg)
MSFS had sent out letters to many card holders saying that its store card would automatically be replaced by the &More credit card unless card holders objected. Under section 51 of the Consumer Credit Act 1974, it is "an offence" to send a credit token to a consumer unless it has been requested in writing, the OFT said.
MSFS considered that it was not contravening the law because it was not supplying a new credit token but sending a replacement card as a result of a variation to the existing store card agreement. The OFT view was that MSFS did not have the right to change one type of card into another in this way.
MSFS has agreed to make changes to its plans, and all store card holders being sent the new &More card will now be told that, if they wish to keep their store card, they need take no action.
In addition, the OFT has challenged a standard term in the MSFS store card agreement that purports to give MSFS an "unrestricted unilateral right" to change the terms of the agreement. The OFT considers that this term was legally unfair and M&S has, without accepting the OFT's view, given the OFT an undertaking that it will amend the challenged term to limit its applicability.
John Vickers, OFT Chairman, said: "Inertia selling of credit can have damaging consequences for consumers. In this case Marks and Spencer Financial Services has agreed to take practical steps so that consumers will move from store card to credit card only if they positively make that choice."
(gmcg)
Related UK National News Stories
Click here for the latest headlines.
05 April 2006
OFT clamps down on credit card charges
The Office of Fair Trading has slammed credit card charges, saying that they have generally been set at "a significantly higher level than is legally fair". Credit card default charges are imposed when customers fail to make the minimum payment on the credit card on time or exceed their credit limit.
OFT clamps down on credit card charges
The Office of Fair Trading has slammed credit card charges, saying that they have generally been set at "a significantly higher level than is legally fair". Credit card default charges are imposed when customers fail to make the minimum payment on the credit card on time or exceed their credit limit.
22 August 2013
Customers To Be Reimbursed Following Mis-Sold CPP Card Protection
The Financial Conduct Authority (FCA) has reached an agreement with Card Protection Plan Limited (CPP) and 13 high street banks and credit card issuers, that will pave the way for redress to be paid to customers who were mis-sold CPP's Card Protection and Identity Protection policies.
Customers To Be Reimbursed Following Mis-Sold CPP Card Protection
The Financial Conduct Authority (FCA) has reached an agreement with Card Protection Plan Limited (CPP) and 13 high street banks and credit card issuers, that will pave the way for redress to be paid to customers who were mis-sold CPP's Card Protection and Identity Protection policies.
19 October 2010
E-crime Officers Arrest Suspected 'Money Mule'
Ahead of National Identity Fraud Prevention week, Metropolitan Police Service (MPS) Police Central e-crime Unit (PCeU) has arrested a suspected counterfeit credit card manufacturer.
E-crime Officers Arrest Suspected 'Money Mule'
Ahead of National Identity Fraud Prevention week, Metropolitan Police Service (MPS) Police Central e-crime Unit (PCeU) has arrested a suspected counterfeit credit card manufacturer.
18 March 2004
Competition Commission to examine Store Cards
The Office of Fair Trading has referred the supply of store cards to the Competition Commission following a study of the sector worth over £4.8 billion a year in the UK.
Competition Commission to examine Store Cards
The Office of Fair Trading has referred the supply of store cards to the Competition Commission following a study of the sector worth over £4.8 billion a year in the UK.
17 November 2011
Car Fuel By Credit Card 'Costs More'
Nearly two thirds of domestic petrol purchases are made by credit card, according to new research by a credit group. The findings by Equifax reveal that more that 58% of us use credit cards to pay for our fuel, just as a further rise in petrol prices is to be debated by MPs in the House of Commons.
Car Fuel By Credit Card 'Costs More'
Nearly two thirds of domestic petrol purchases are made by credit card, according to new research by a credit group. The findings by Equifax reveal that more that 58% of us use credit cards to pay for our fuel, just as a further rise in petrol prices is to be debated by MPs in the House of Commons.
-
Northern Ireland WeatherToday:It will be cloudy again throughout the day. Mainly dry in the morning, but patchy drizzle in places, becoming more widespread and persistent in the afternoon. Freshening southwesterly winds. Maximum temperature 12 °C.Tonight:Cloudy with a spell of heavy rain pushing south through late evening and the early hours, followed by some clear spells. Minimum temperature 6 °C.
