Credit card overlimit fee

xbox-widow_2

Can someone give me some advice please?
My husband has gone over his limit on his Tesco credit card and quite rightly was charge £12 for doing so. However we paid enough to bring the card well within the limits and the next month he had another £12 charged to the account as "over limit fee". I queried this and was told it was because the brought forward balance was overlimit. - Yes it was from the previous statement, but the account had been paid before the due date and the current balance was no longer over limit. The brought forward balance is surely there for continuity purposes and it seems a little unfair to effectively be charged twice for going over limit once. Any thoughts greatfully received. Thanks Katie

chexum

xbox-widow wrote: »

The brought forward balance is surely there for continuity purposes and it seems a little unfair to effectively be charged twice for going over limit once. Any thoughts greatfully received.

It's very common for over-limit fees to apply for a statement period, so if you receive a statement with an over-limit balance, you're in it for the second time. The assumption is that you should really stay on top of your financials.

It should be in the detailed terms and conditions when can they charge you for it, but it's not easily available to review for me on the tescofinance pages. If you can't find it specified, you really should ask them about it.

If you still think it's unfair - and I personally would agree somewhat - you should certainly mention that you did not have a chance to correct the over-limit condition before you received the statement.

Just make sure to not abuse anyone on the other side of the phone, if you have a genuine concern, they *may* be able to remove at least one of those charges, if this is the first time you bumped into the limit. If not, you can still ask them how to complain formally about the charges.

The bad thing about leaving the account over-limit when the statement is due, that it may be reported to the CRAs with the account being overlimit, so even if they remove the charges for you, every lender in the next three years will be able to see that you went over limit

chocolatetabby

xbox-widow wrote: »

Can someone give me some advice please?
My husband has gone over his limit on his Tesco credit card and quite rightly was charge £12 for doing so. However we paid enough to bring the card well within the limits and the next month he had another £12 charged to the account as "over limit fee". I queried this and was told it was because the brought forward balance was overlimit. - Yes it was from the previous statement, but the account had been paid before the due date and the current balance was no longer over limit. The brought forward balance is surely there for continuity purposes and it seems a little unfair to effectively be charged twice for going over limit once. Any thoughts greatfully received. Thanks Katie

Complain in writing, my credit limit was lowered by the card company ensuring I would be over my credit limit but they advised I make an extra payment which I did, the following month they again informed me I was over my credit limit, charged me a fee and suggested I make an extra payment! I am still waiting for a reply but I only sent the letter this week.

Thrugelmir

xbox-widow wrote: »

Yes it was from the previous statement, but the account had been paid before the due date and the current balance was no longer over limit.

As soon as a statement is issued you enter a new period. The due date of the regular payment required has no relevance. The account had entered a 2nd month of being over limit. Hence the 2nd charge of £12.

Rather than complain at TPF as your card T&C's will clarify these charges. Better to tackle the reason that the credit limit was exceeded.

xbox-widow_2

Thank you everyone for your quick replies. It does seem to make sense (although I still think it's a little unfair) - I may just have to hide the credit card from my Husband for a while as he spends on it not realising he's at his limit. At the end of the day, he did go over his limit so is only fair he was charged for doing so.