How to get money back from House of Fraser
New Help to Save account, get paid to shift debt to 0%, 25% off Habitat, and advice for House of Fraser bankruptcy victims – these are our Money Saving Expert Martin Lewis’ Quick Deals.
Remember, deals can change quickly, even while I’m on the programme. So always double-check the terms and conditions before spending. Plus, while I hope these deals will save you cash, don’t spend if you can’t afford it, don’t need it, or won’t use it.
New Help to Save account gives up to £1,200 bonus
The Government has just launched the long awaited ‘Help to Save’ savings, for those on low income. With it you can save from £1 to £50 each month (you don’t have to put money in every month), and at the end of the two years you’ll get a 50% bonus (max £600) paid automatically. You can then decide to close the account, or continue saving for another two years, again saving up to £50/mth, and potentially get another bonus (max £600) paid at the end of the four years.
To get one, you need to be a UK resident (or posted overseas with the armed forces) and:
Entitled to working tax credit and receiving working/child tax credit payments. Claim universal credit and have an individual/household income from employment of £543 or more for the last monthly assessment period. If you’re eligible you can open the account until September 2023, online via the Government website. You'll need a Government Gateway account, but if you don't have one you can set one up during the application process.
At first I was concerned this account would encourage people to save when they should instead be paying off debts, including some extremely expensive ones like payday loans. Yet a clever structure enables people possibly to have the best of both worlds. The bonus you’re paid, is based on the highest amount you have saved, rather than the amount that you actually have in there. Which means you can build up your savings until you have an emergency that you would otherwise have borrowed for and then use your savings instead of borrowing, but you'll still be rewarded for the fact that you saved in the first place.
For example if you saved £50/mth for ten months, so have £500 in there. But the next month you have an emergency and need that £500, so your savings balance drops to £0. You will still get a bonus of £250 at the end of the two years.
If you choose to save longer, then you get another bonus after four years if the maximum saved later was higher than the maximum in first two years. E.g. you maxed out at £500 in the first two years, so got a £250 bonus. Then maxed out at £800 in the last two years you’d get a £150 bonus (as this is £300 more than the maximum in the first two years).
It's a very clever scheme and one that will work for many people. Of course though, if you have extremely expensive debts, rather than saving, it's best to try and clear those first.
Get PAID £20 to shift £2,000+ debts to 0% interest free card for up to 24months
This is all about a balance transfer card - where you get a new card that pays off the debts on old cards for you – so you owe it instead but at a lower rate, usually at 0%. This means all your repayments clear the actual debt rather than covering the interest – so you’re debt free quicker.
However many cards charge a one-off fee to do this, up to 3% of the amount you’re shifting. Right now though if you shift debt not only will it be fee-free you’ll be PAID to do it. Yet before getting into the detail, it’s worth saying don’t just apply for cards in hope you’ll get them, that’ll hit your credit file. Use Martin’s free ‘Balance transfer eligibility checker’ to find your chances of getting each card, so you can hone in on your winner.
Currently, apply to Barclaycard and if accepted you’ll get ‘up to’ 24 months 0% for no BT fee and it’ll credit £20 into your account if you transfer £2,000+ in the first 60 days – so you’re actually being paid to do it (note though it initially charges a 2% fee of the amount transferred but refunds it within 28 working days). But this is an ‘up-to’ card which means some get a shorter 0% length. If this worries you, Santander gives a guaranteed longer 27 month 0% if accepted, also no fee, but there’s no cashback.
If you need even longer to repay, then you can get up to 33 months with Barclaycard with a 1.95% fee. This card also gives £20 cashback when you transfer over £2,000, which’ll help reduce the fee. Or Tesco gives a longer up-to 36 months 0%, with a higher 2.69% fee.
Always follow my balance transfer golden rules…
The same brands have many similar cards, check you’re applying for the right one.
Repay at least the monthly minimum or the bank can end the 0% deal.
Clear the card in full by the end of the deal or the rate rockets to 18.9%-20.9% rep APR.
Never withdraw cash or spend on the card as it’s not at the 0% rate.
25% off Habitat
Go online to home furnishings retailer Habitat and until 11.59pm Sunday 23 September, you’ll get 25% off almost everything when you enter the code HAB25. Everything's included, except gift vouchers, fitted kitchens, installation and furniture assembly. For example you can get a two-seater sofa for £450 (was £600), a pair of copper lamps for £15 (was £20) and a cotton throw for £34 (was £45). The discount will also be applied automatically at the till in Habitat's stores, as well as concessions in Argos and Mini Habitat stores in Sainsbury's until closing time on Sunday.
House of Fraser bankruptcy victims – how to get a refund now if it won’t give you one
Last month House of Fraser went into administration, and many customers have been left in limbo as to whether they’ll get their orders delivered, or at least a refund. At first it said customers would receive a refund, but now it’s backtracked and told customers who have been waiting weeks for a refund that they will have to go to the administrator, EY. Even if you do this, it’s very unlikely you’ll get much back, as you'll be in a long queue behind many other creditors.
But depending on how you paid, there may be other routes you can try to get your money back.
· Paid on a credit card and the item cost more than £100? Try Section 75. Under Section 75 of the Consumer Credit Act, if you pay on your credit card for an item (not the total order value) costing more than £100, the card company's equally liable and you may be able to claim from it. If your credit card provider won't help, then contact the Financial Ombudsman to make a complaint.
· Item cost less than £100 on a credit card – or any amount on a debit card? Try chargeback. This involves asking your debit card provider to ask House of Fraser for your money back as you have not received the service. Unlike Section 75, chargeback isn't a legal requirement. It’s Visa, MasterCard (£10 min on this) and Amex rules, to do it you'll need to claim via your bank. As a general rule the Financial Ombudsman Service says you've 120 days to submit a claim from when you first became aware of the problem, and 540 days from when you bought your item, but do it ASAP.
· Have a gift card? After Sports Direct purchased House of Fraser, customers with gift cards were told to send them to House of Fraser's head office for a replacement. But now, weeks later, many customers still haven't heard anything and despite my team asking Sports Direct several times, we've not been given any update on the situation. Unfortunately it looks like the money’s lost on those. This is why I always warn against giving gift cards as gifts. You may be able to get the money back via chargeback or section 75, but not until House of Fraser officially says it won’t honour them.