Payment holidays and Loan repayment deferrals

Cards

From 1 August 2021 you're no longer able to request a new or extend a payment holiday on your M&S Credit Card, M&S Budgetcard, Chargecard and Personal Reserve.
If you have any questions about a payment holiday you've taken previously, please read the information below.

How did your payment holiday work?

Your payment holiday meant you didn't need to make monthly payments over the payment holiday period.

If you usually pay by Direct Debit, we won't have collected any payments from you over this period. If you usually pay by Standing Order, we asked you to cancel this at the start of the payment holiday.

As your payment holiday has now ended, you'll continue to see your minimum payment and the due date on your monthly statement as normal. You may have noticed this is higher following your payment holiday. This is because your minimum payment is based on the amount you owe, which will take into account any increase due to interest or use of your card during the payment holiday.

If you cancelled your Direct Debit or Standing Order at the start of your payment holiday, you'll need to set up a new one if you haven't already. Until then, you'll need to make payments another way. For help with ways to pay, including how to set up a Direct Debit, please visit ways to pay your credit card. You can also find information about ways to pay on the back of your monthly statement.

Did interest and charges apply during your payment holiday?

Interest continued to apply at the usual rates during your payment holiday, as well as standard charges (for example, if you used your card to withdraw cash). We didn't apply any charges for going over your credit limit during the payment holiday. There were also no charges for paying late, as there were no minimum payments due over this period.

As you didn't have to make any payments during the payment holiday period, you may not have paid off all the interest added to your account. This means there'll be interest charged on that interest, as well as on transactions added to your account.

Your balance may also have increased if you continued to use your card during the payment holiday, so you could be paying interest on a higher amount and you may have noticed your minimum payment is higher following your payment holiday.

If you usually make the minimum or fixed payments, it's worth considering whether you can afford a higher amount. This will reduce the extra time it could take to clear your balance and the interest you'll pay.

Did your payment holiday affect your credit file?

Taking a payment holiday didn't impact your credit file, but providers may consider other information when making future lending decisions.

Why aren't payment holidays available any longer?

This is in line with guidance provided by the Financial Conduct Authority. However, there's still support available which will be tailored to your individual circumstances. The options we have available are likely to impact your credit file.

If you need our help, find out how you can get in touch.

Loans

From 1 August 2021 you're no longer able to request a new or extend an existing loan repayment deferral.
If you have any questions about a loan repayment deferral you've taken previously, please read the information below.

How did your loan repayment deferral work?

Your repayment deferral gave you a break from making your monthly loan repayments over the deferral period.

If you usually pay by Direct Debit, we won't have collected your repayments over the deferral period. If you usually pay by Standing Order, we asked you to cancel this at the start of the deferral.

As your deferral has now ended, you'll need to resume making your usual monthly repayments if you haven't already. We'll have written to remind you of when your repayments were due to restart.

If you pay by Direct Debit, we'll continue collecting your repayments. If you pay by Standing Order, please make sure you've set up a new one.

What are your options for making the deferred repayments?

You can continue making your usual loan repayments until you've repaid your loan. This means it will take you longer to repay the loan overall, but the total amount you repay won't change as there won't be any charges or additional interest.

If you wish, you can arrange to pay any part of your outstanding balance sooner. This will reduce the extra time it takes to repay your loan.

Did your repayment deferral affect your credit file?

Taking a repayment deferral didn’t impact your credit file, but providers may consider other information when making future lending decisions.

Why aren’t repayment deferrals available any longer?

This is in line with guidance provided by the Financial Conduct Authority. However, there’s still support available which will be tailored to your individual circumstances. The options we have available are likely to impact your credit file.

If you need our help, find out how you can get in touch.