Many longstanding bank card prospects of John Lewis indignant after being informed their credit score restrict can be slashed by as much as 96%
Many longstanding bank card prospects of John Lewis are indignant after being informed their credit score restrict can be slashed by as much as 96 per cent.
Various cardholders have aired their grievances on overview web site Trustpilot and Twitter. In some situations, cardholders have been informed they may now not have the ability to use their card after the top of October.
The backlash comes a fortnight after John Lewis confirmed it had appointed finance firm NewDay to switch HSBC to handle its card. NewDay has 5 million prospects and is the supplier behind Amazon’s bank cards.
Swap: NewDay will handle the John Lewis card
John Lewis cardholders have been informed they will maintain utilizing their outdated playing cards – which earn them rewards to spend within the division retailer and Waitrose – till 6pm on October 31. To stay a buyer after this date, cardholders should reapply and be authorised.
Retired Stephanie Buchanan, 69, from Suffolk, has had a bank card with the retailer for 16 years and ‘is lower than impressed’ by being requested to reapply.
‘Nevertheless they wrap it up, they’re asking me to use for a brand new bank card,’ she says. ‘I might by no means open a brand new account with an organization I’ve by no means heard of, particularly after the opinions I examine NewDay had been universally terrible.’
NewDay has been round for 20 years and says it is among the UK’s largest suppliers of shopper credit score. Its manufacturers embrace Aqua and Bip – and it has partnership agreements with Argos in addition to Amazon. The cope with Amazon is because of finish in January.
Stephanie, who retailers on the Waitrose retailer in Bury St Edmunds, asks: ‘What are John Lewis taking part in at?’
Others have been equally crucial. Cardholder Garth Pollard left a overview on Trustpilot saying NewDay had supplied him half his earlier credit score restrict. ‘I’ve a really excessive credit standing and repay [my card] in full every month,’ he stated. ‘There was no change in my monetary state of affairs. I can not imagine they’re treating loyal prospects on this means.’
Sue Falkner additionally complained, saying she has all the time paid her card stability in full and has by no means had any credit score points prior to now. ‘A paltry £250 credit score approval given towards the £7,000 I’ve at the moment. What a joke,’ she wrote.
One other buyer, David, wrote that NewDay had rejected him for a brand new card and ‘could not provide any rationalization’.
‘Doubtlessly this leaves me with no bank card, because the normal recommendation is to not apply for a brand new card should you’ve been declined within the final 30 days,’ he added.
NewDay informed The Mail on Sunday: ‘The overwhelming majority of shoppers transferring to the brand new John Lewis bank card are being supplied the identical or a better credit score restrict.’
It stated the rate of interest on uncleared balances would stay the identical as utilized by HSBC – 18.9 per cent.
NewDay added: ‘Candidates are assessed based mostly on their present affordability and creditworthiness, in keeping with business finest apply and Monetary Conduct Authority necessities. If there have been any latest important adjustments to a buyer’s monetary state of affairs, it might imply they would not qualify for the brand new card.’
Trustpilot does carry constructive opinions for NewDay, with 52 per cent of submitted opinions rating the corporate ‘glorious’ – in comparison with 31 per cent who rank it ‘dangerous’. John Lewis claimed that suggestions from the overwhelming majority of its card prospects had been ‘extraordinarily constructive’.
It stated: ‘We’re very happy with our Partnership bank card and we’re working extremely laborious to handle points raised by lower than one per cent of shoppers.’ The retailer’s monetary arm, John Lewis Monetary Companies, started buying and selling in 2016 and presents a spread of merchandise together with investments, bank cards, overseas foreign money, cash switch providers and residential, automobile and pet insurance coverage. In April, the division reported income of £18.4million for the yr to January 29, 2022, up £5.8million from the earlier yr.
Clients who’ve considerations about their partnership card can contact the John Lewis buyer providers workforce on 0345 300 3833. Strains are open 8am till 8pm, seven days per week.
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