Declined for a John Lewis credit card despite excellent credit scores

Sue Peters thought nothing of it when she was told to re-apply for the John Lewis credit card she had used for almost a decade.

Like thousands of loyal John Lewis and Waitrose shoppers, the 79-year-old from Battle, East Sussex, uses the card for almost all her everyday needs so she can build up reward points to spend in store.

Plus, she has never missed a payment and clears her balance every month without fail.

John Lewis explained in his letter that there was nothing to worry about – the retailer had simply switched card providers from HSBC to a company called NewDay. All customers had to do was fill out a form and a brand new piece of plastic would arrive in the mail.

However, despite Sue’s fiercely loyal custom, her application was rejected.

Even more disconcerting is that she has since discovered she was turned down despite having an impeccable credit score: a 999 rating on credit reference agency Experian.

“I’m very disappointed,” says Sue. “I use my card for everything – petrol, food, household expenses and utilities – and I had a limit of £12,000.

“I buy from John Lewis, not Amazon, and my average spend is £4,000, which I pay every month. I was very shocked that I was not approved.”

NewDay told Sue she must provide three months’ worth of bank statements and other confidential information before considering a review of her case, which she said was rejected because it initially failed to verify her income.

Sue is far from alone. Money Mail has received complaints from loyal John Lewis and Waitrose customers with high credit scores who say they are either being turned down for a new John Lewis credit card or given lower limits on the amount they can spend on it.

A number of furious customers have told us they have perfect or near-perfect credit scores, with some so frustrated they are threatening to stop shopping at John Lewis and Waitrose altogether.

Long-time customer: Mary Thomas says she was denied a loan for the first time in her life despite having an excellent credit score

Launched in 2004, the John Lewis credit card is popular for its generous rewards. Customers can earn five points for every £4 spent with the card at John Lewis or Waitrose, which can then be exchanged for vouchers to spend in store. Over the past five years, the company has issued £230 million worth of vouchers to cardholders.

Existing cards (provided by HSBC) expire on 1 November. Customers have been told they must re-apply for their NewDay card by December 31 to transfer their reward points – or they could lose them.

Those who switch will be able to earn triple points in the first 90 days for shopping at John Lewis and Waitrose.

Anyone with more than 500 points who does not register a new partnership card will receive a £5 voucher. But those with less points will lose a lot.

David Martin, 79, and his wife, Janet, have been cardholders for more than a decade. The retired air traffic controller, from Farringdon, London, says John Lewis and Waitrose were their main stores.

But that will soon change. The couple have just signed up for a credit card with Lloyds Bank after being told their credit limit will be reduced on a new John Lewis card.

“My existing card had a credit limit of £7,000, but when I re-applied online I was given an estimated credit limit of £1,000, which I thought was completely inadequate,” says David.

“When I asked why, I was told it was just a forecast, but they would give a final limit when the application was complete.”

With the John Lewis Credit Card, customers can earn five points for every £4 spent with the card at John Lewis or Waitrose, which can then be exchanged for vouchers to spend in store

When David tried to contact John Lewis, he claims he waited 45 minutes to speak to a counselor, and when he finally got through, he was transferred to another member of staff and put on hold for another 30 minutes, by which time he hung up.

He says, “I’m really annoyed. I can’t remember a time when I didn’t have a John Lewis card, but it seems that customer loyalty doesn’t matter. I went online to Lloyds, asked for a credit card and five minutes later I was given one with a credit limit of £7,000.

“John Lewis and Waitrose have completely lost their way and seem to be doing everything they can to alienate their customers.”

Mary Thomas, 74, a retired programmer from Swindon, Wiltshire, says she has been turned down for a loan for the first time in her life despite having a top credit rating.

Mary, who has had a John Lewis Partnership credit card for the past five years, says: “I’m on a good income and I’m retired so it’s regular. I have paid off my mortgage and have excellent credit. There is no clear reason why they turned me down.

“I respect John Lewis as a good company and I am disappointed that they are not giving me a reason why I was turned down.”

After Money Mail contacted the firm, it contacted Mary and accepted her application after “reviewing her documents”.

Losses of John Lewis in the first half of this year amounted to 99 million pounds.

Money Mail has asked the company to take your complaints directly to boss Sharon White so she can understand how frustrated loyal customers have become. Instead, John Lewis said Amir Goshtai, director of John Lewis Financial Services, was “best placed” to answer questions.

He says: “About 96 people who applied were accepted and 84 were offered the same or higher credit limit.

“We’re very sorry that any customer was disappointed and we’re listening to feedback and working with our new loan provider, NewDay, to do everything we can to help by continuing to lend responsibly.”

A spokesman for John Lewis says the company has trained more than 400 “partners” in its branches to help customers with applications and has significantly increased the number of advisers in its call centres.

The spokesperson added: “There are many reasons why customers are turned away [for a card]including changes in their financial circumstances since they first took out the card, because they have had difficulty demonstrating their affordability, or the information held about them by the credit bureau may be incorrect.

“We are constantly looking at customer feedback and would encourage anyone who feels they should have been approved or would like help with their application to contact us and we will do our best to help.”

If you’re having trouble applying for a new card, you can contact the dedicated customer service team on 033 0165 4868. They say the average waiting time for a call in October is 1 minute 44 seconds.

a.cooke@dailymail.co.uk