Tesco CC - Unfair Terms & Conditions

ajax_2

I have a Tesco CC and recently made a payment late by 1 day. So I got charged interest on the items on that statement(which I had to accept). When I received the next statement I noticed that there was another amount for interest, apparently for the items on this statement as I had not paid the previous balance on time. So effectively I got charged for 2 month interest for items on the 2 statments, even though I was only one day late in payment of the first bill.

Apparently its in the T&Cs, that you have to have paid the previous months balance in full to avoid interest on the items in current months statement.
This seems to be quite a strange condition, I have never had this problem with Barclaycard.

Any suggestions?

Thanks

Ajax
:mad:

dmg24

As far as I'm aware that is the case with most cards. There was a recent discussion along the same lines relating to the M&S &More card.

Bisoy

"On credit cards use mistakes are there to learn be smart next time."

The_Boss

My suggestion would be to leave plenty of time before the due date to pay next time.

Astaroth

setting up direct debit for the minimum payment ensures that you are never late for the payment and you can always make later additional payments to the card if you want

Rafter

I think the credit card companies call this trailing interest.

As well as getting charged interest on items on your previous statement, you also get charged on the next on the basis that your account was not 'paid in full' when the items were purchased.

Not fair. But not illegal and as you point out Barclaycard do not use this particularly sneaky trick..... yet.

Gorgeous_George

You need to decide if the card is so good that it cannot be replaced by another.

Ask them to refund the charge or close your account. It's likely that most other cards are just the same but at least you will have made your point with Tesco.

If you close, make sure you use all your clubcard points first.



GG

sdj25

Now that title is interesting ....

Unfair Terms & Conditions

How can they be unfair? They are available to you before you take out the CC, or a loan, or a mortgage. And you signed your agreement to them - so how is it classed as "unfair"

This is not a dig at you ajax, but it's interesting that you called it that.

ajax_2

How can they be unfair? They are available to you before you take out the CC, or a loan, or a mortgage. And you signed your agreement to them - so how is it classed as "unfair"

I titled it unfair as with most things like this , is that this is not highlighted when you take the CC out. It is buried deep in the T&Cs which I did not (and most people) do not read.

We have seen this in the past with other financial products that some times T&Cs are unfair and in my opionion I think this is.

I know it is my mistake and as some said, you learn from it.

Ask them to refund the charge or close your account. It's likely that most other cards are just the same but at least you will have made your point with Tesco.

I have asked them and they have refused to do as they rightly state that I had broken the T&Cs, but they do not believe in customer service. I spend quite a lot on the Tesco CC so I thought they would like to keep me as a customer, but I do not think that they are bothered.

Time to look for another CC.

Anwen_2

From the Summary Box of their Bonus CC:

Interest Free Period

Maximum 56 days for purchases if you pay your balance in full and on time, and have paid the previous month's balance in full and on time. There is no interest free period on cash and advances, cheques or money transfers. Interest free period on balance transfers only applies during the introductory period.

(the clubcard credit card says much the same, but 46 instead of 56 days). Hardly buried!

The_Boss

sdj25 wrote:

Now that title is interesting ....



How can they be unfair? They are available to you before you take out the CC, or a loan, or a mortgage. And you signed your agreement to them - so how is it classed as "unfair"

This is not a dig at you ajax, but it's interesting that you called it that.

And interesting that they thought they were unfair at the time, but still decided to take advantage of the benefits of signing up for the card with no quibble.