Tesco credit card issues
Discussion
Basically, i have been using a Tesco 0% credit card for a while, but a company computer error has caused a number of issues.
After sending a bank transfer of £25, their computer did something weird and sent me back my £25, but 21 times.
The next month i receive a letter from my bank informing me that have transferred £500 back to Tesco.
The issue is that i have now incurred a £12 'late payment penalty' and my interest rate has skyrocketed. Tesco are being very unhelpful. Where do i stand legally?
I'm going to clear the balance and cut up the card, but can i refuse to pay the £12 fee and all interest charged?
After sending a bank transfer of £25, their computer did something weird and sent me back my £25, but 21 times.
The next month i receive a letter from my bank informing me that have transferred £500 back to Tesco.
The issue is that i have now incurred a £12 'late payment penalty' and my interest rate has skyrocketed. Tesco are being very unhelpful. Where do i stand legally?
I'm going to clear the balance and cut up the card, but can i refuse to pay the £12 fee and all interest charged?
marshalla said:
Can you show that you made the payment on time and that Tesco are responsible for the error ?
I can supply a statement of an attempt to send them £25, then receiving £525 back from them.The thing that concerns me is whether an "Attempt to pay" is grounds to contest a late payment penalty...?
I fell out with Tesco CC, booked some flights for the whole family, then paid couple of other things a week or so later which took me over credit limit by about 12 quid. They let it all go through, but rather than refuse the last small transaction which took it over, then charged me some sort of penalty.
They could have easily phoned me or stopped it, but they allowed it, then said nothing till after the month end, so the penalty then spanned two months, and was charged twice! Plus interest.
When I phoned the guy was an aggressive wee s
te, told me to refer to the T and Cs, wouldn't budge on any of it. Hard work.
Account paid in full and closed there and then.
(I run a wee business myself, and view credit limits as something I offer and I manage, not the customer)
They could have easily phoned me or stopped it, but they allowed it, then said nothing till after the month end, so the penalty then spanned two months, and was charged twice! Plus interest.
When I phoned the guy was an aggressive wee s
te, told me to refer to the T and Cs, wouldn't budge on any of it. Hard work.Account paid in full and closed there and then.
(I run a wee business myself, and view credit limits as something I offer and I manage, not the customer)
H22observer: I would make a complaint and put it in writing.
I'm afraid you are mistaken, your credit limit is not a hard limit. Retailers sometimes process transactions offline (particularly small transactions) - this means that the amount available to spend isn't checked beforehand and there is nothing that Tesco can do to stop the transaction.
fridgedoctor said:
I fell out with Tesco CC, booked some flights for the whole family, then paid couple of other things a week or so later which took me over credit limit by about 12 quid. They let it all go through, but rather than refuse the last small transaction which took it over, then charged me some sort of penalty.
They could have easily phoned me or stopped it, but they allowed it, then said nothing till after the month end, so the penalty then spanned two months, and was charged twice! Plus interest.
When I phoned the guy was an aggressive wee ste, told me to refer to the T and Cs, wouldn't budge on any of it. Hard work.
Account paid in full and closed there and then.
(I run a wee business myself, and view credit limits as something I offer and I manage, not the customer)
Oh dear, it's up to you to manage your spending not Tesco. It was your mistake/mis-management that caused you to go over your limit (and technically this is a breach of your agreement with Tesco).They could have easily phoned me or stopped it, but they allowed it, then said nothing till after the month end, so the penalty then spanned two months, and was charged twice! Plus interest.
When I phoned the guy was an aggressive wee s
te, told me to refer to the T and Cs, wouldn't budge on any of it. Hard work.Account paid in full and closed there and then.
(I run a wee business myself, and view credit limits as something I offer and I manage, not the customer)
I'm afraid you are mistaken, your credit limit is not a hard limit. Retailers sometimes process transactions offline (particularly small transactions) - this means that the amount available to spend isn't checked beforehand and there is nothing that Tesco can do to stop the transaction.
Edited by bugmenot on Sunday 20th April 11:53
Bugmenot
The offline thing isn't it though, because there was over a week between the flights, then the other thing that topped it.
Then, when the limit was breached, they could've phoned me to sort it, but didn't, it was left until after the statement date, it came up, and conveniently straddled two bills, so double penalty.
It really isn't how I treat my customers, they wouldn't have it, nor will I.
(The guy on the phone really was the clincher though, I only rang in to see if they would knock one penalty thing off as it came to much more than the amount I'd breached the limit by, and seemed a little sharp due to the intervals involved. I was pleasant and apologetic. He was an utter dick from the get go)
The offline thing isn't it though, because there was over a week between the flights, then the other thing that topped it.
Then, when the limit was breached, they could've phoned me to sort it, but didn't, it was left until after the statement date, it came up, and conveniently straddled two bills, so double penalty.
It really isn't how I treat my customers, they wouldn't have it, nor will I.
(The guy on the phone really was the clincher though, I only rang in to see if they would knock one penalty thing off as it came to much more than the amount I'd breached the limit by, and seemed a little sharp due to the intervals involved. I was pleasant and apologetic. He was an utter dick from the get go)
fridgedoctor said:
Bugmenot
The offline thing isn't it though, because there was over a week between the flights, then the other thing that topped it.
Then, when the limit was breached, they could've phoned me to sort it, but didn't, it was left until after the statement date, it came up, and conveniently straddled two bills, so double penalty.
It really isn't how I treat my customers, they wouldn't have it, nor will I.
(The guy on the phone really was the clincher though, I only rang in to see if they would knock one penalty thing off as it came to much more than the amount I'd breached the limit by, and seemed a little sharp due to the intervals involved. I was pleasant and apologetic. He was an utter dick from the get go)
It doesn't matter how long it was between the transactions. If the retailer processes a transaction offline then Tesco can't stop it.The offline thing isn't it though, because there was over a week between the flights, then the other thing that topped it.
Then, when the limit was breached, they could've phoned me to sort it, but didn't, it was left until after the statement date, it came up, and conveniently straddled two bills, so double penalty.
It really isn't how I treat my customers, they wouldn't have it, nor will I.
(The guy on the phone really was the clincher though, I only rang in to see if they would knock one penalty thing off as it came to much more than the amount I'd breached the limit by, and seemed a little sharp due to the intervals involved. I was pleasant and apologetic. He was an utter dick from the get go)
Even if the transaction was processed online and Tesco had the ability to decline your transaction they are not obliged not. When making card payments they are simply acting on your instructions. You might want them to decline the transaction but some people won't mind going over their limit (perhaps in an emergency).
I don't know of any credit card company that will phone you when you go over your limit. Why are you under the assumption that they would? You have the capability of checking your statement online or on the phone so it's a good idea to do so.
Most of the card companies will be quite sympathetic if this is a first time "offence" though. Maybe Tesco aren't? Maybe the guy you spoke to on the phone isn't?
I get the concept that I'm responsible for the spend, but I though a limit would be as you called it, a hard limit
(It is for me, I offer credit to other companies up to the limit I've decided upon. Any more, I speak to them, and either proceed if happy, or get a payment first. It's easy enough)
I really think me and the guy on the phone just didn't hit it off.
(It is for me, I offer credit to other companies up to the limit I've decided upon. Any more, I speak to them, and either proceed if happy, or get a payment first. It's easy enough)
I really think me and the guy on the phone just didn't hit it off.
fridgedoctor said:
I get the concept that I'm responsible for the spend, but I though a limit would be as you called it, a hard limit
(It is for me, I offer credit to other companies up to the limit I've decided upon. Any more, I speak to them, and either proceed if happy, or get a payment first. It's easy enough)
I really think me and the guy on the phone just didn't hit it off.
You keep going on about offering credit to companies but unless this credit you offer is by way of a credit card then it's not comparable.(It is for me, I offer credit to other companies up to the limit I've decided upon. Any more, I speak to them, and either proceed if happy, or get a payment first. It's easy enough)
I really think me and the guy on the phone just didn't hit it off.
The reason for not having a hard limit is very sensible and is for the customer's benefit.
fridgedoctor said:
I fell out with Tesco CC, booked some flights for the whole family, then paid couple of other things a week or so later which took me over credit limit by about 12 quid. They let it all go through, but rather than refuse the last small transaction which took it over, then charged me some sort of penalty.
They could have easily phoned me or stopped it, but they allowed it, then said nothing till after the month end, so the penalty then spanned two months, and was charged twice! Plus interest.
When I phoned the guy was an aggressive wee ste, told me to refer to the T and Cs, wouldn't budge on any of it. Hard work.
Account paid in full and closed there and then.
(I run a wee business myself, and view credit limits as something I offer and I manage, not the customer)
They are a business not a charity, they are their to make money.. A fool and his money are easily parted.They could have easily phoned me or stopped it, but they allowed it, then said nothing till after the month end, so the penalty then spanned two months, and was charged twice! Plus interest.
When I phoned the guy was an aggressive wee s
te, told me to refer to the T and Cs, wouldn't budge on any of it. Hard work.Account paid in full and closed there and then.
(I run a wee business myself, and view credit limits as something I offer and I manage, not the customer)
As for the OPs problem I'd be arguing that I made the payment (it does appear on your statement right?) and that you have no idea why the other 21 unauthorised reverse payments were made without your consent. To be fair it might not be Tesco's (well the company that runs their credit card) fault and perhaps the blame falls squarely with your bank.
Foliage said:
They are a business not a charity, they are their to make money.. A fool and his money are easily parted.
As for the OPs problem I'd be arguing that I made the payment (it does appear on your statement right?) and that you have no idea why the other 21 unauthorised reverse payments were made without your consent. To be fair it might not be Tesco's (well the company that runs their credit card) fault and perhaps the blame falls squarely with your bank.
I filed a visa dispute about a week ago. My bank said that Tesco had behaved badly but were legally entitled to snatch the money back even if they were at fault for whatever reason.As for the OPs problem I'd be arguing that I made the payment (it does appear on your statement right?) and that you have no idea why the other 21 unauthorised reverse payments were made without your consent. To be fair it might not be Tesco's (well the company that runs their credit card) fault and perhaps the blame falls squarely with your bank.
I'm hoping that i can argue that Tesco are incompetent and had temporarily lost control of their computer system. i double checked the account number and sort code and the fault was definitely not at my end. I refuse to make any online payments now. All payments are going via a good old fashioned cheque.
H22observer said:
I filed a visa dispute about a week ago. My bank said that Tesco had behaved badly but were legally entitled to snatch the money back even if they were at fault for whatever reason.
I'm hoping that i can argue that Tesco are incompetent and had temporarily lost control of their computer system. i double checked the account number and sort code and the fault was definitely not at my end. I refuse to make any online payments now. All payments are going via a good old fashioned cheque.
If that's the case id suggest you ditch both your bank and Tesco, don't give them any more of your money they are incompetent, its clear that your intention was to make the payment but the system failed. Try someone else. Ive found moving bank these days to be remarkably easy. I am guessing though that its as much your banks fault as it is Tesco's they should have spotted this strange activity and given you a call.I'm hoping that i can argue that Tesco are incompetent and had temporarily lost control of their computer system. i double checked the account number and sort code and the fault was definitely not at my end. I refuse to make any online payments now. All payments are going via a good old fashioned cheque.
Foliage said:
If that's the case id suggest you ditch both your bank and Tesco, don't give them any more of your money they are incompetent, its clear that your intention was to make the payment but the system failed. Try someone else. Ive found moving bank these days to be remarkably easy. I am guessing though that its as much your banks fault as it is Tesco's they should have spotted this strange activity and given you a call.
I'm a premium customer as well. I pay £10 per month for supposedly better service.I reckon if i push hard enough, my bank will pay any charges for failing to inform me of a bounced payment...
Gassing Station | Finance | Top of Page | What's New | My Stuff