Tesco CC, Refund Issue

masweetpea

I have a tesco credit card, I pay my balance off every month in full.

I had bought some items on it (£150 in value). I returned some of the items and therefore was given a refund (£100, so I had only kept £50 worth of goods). I then paid the remainder of the balance to tesco (the £50), so I believed my card was paid off in full for that month. The refund showed on my statement for that month.

Tesco have charged me interest on the £100 as apparently a refund is not classed as a "credit". So I have been told I should have paid them the full £150 as well as getting the £100 refund on the account which would put the account £100 in credit (ie I'm paying off more than I think I should).

Is this correct? Are all credit cards like this? I can't quite believe that they dont count a refund towards the balance.

Any help appreciated!

lisyloo

The refund showed on my statement for that month

Which month.
Can you give us some dates.
Transaction date, refund date, payment due date, payment date, statement date.
Sorry, but that will help make it clear.

as apparently a refund is not classed as a "credit".

It's certainly not always counted as a "payment" so you need to make payment by the DUE date to aboid interest, although of course it comes of your balance.
A list of dates and order of events will help clarify if you slipped up on a payment.

So I have been told I should have paid them the full £150 as well as getting the £100 refund on the account which would put the account £100 in credit

If a payment was DUE before the redund appeared then this is correct (again the dates and order of events will clarify).
If £150 is DUE on x/x, then that is what needs to be paid to occur no interest.

If Tesco's refund was "late" and by that I mean after you payment date then yes you have to pay what is DUE.

I can't quite believe that they dont count a refund towards the balance.

They do count towards you balance.
The most likely explanation is that payment was DUE before the refund appeared. That's unfortunate but yes all credit cards work like that.

please post the dates and sequence of events to clarify futher eg.

1) purchase date
2) statement date
3) payment due date
4) refund date
5) actual payment date

The curx is whether 3 or 4 came first.

masweetpea

Hi,

my statements at home so I've gone from memory, but they were around these dates.

1) purchase date - end of March ish?
2) statement date 27 March
3) payment due date 16 April
4) refund date 9 April
5) actual payment date 12 April

Basically I worked out the amount owed minus the refund and then paid the rest of the balance (thereby the balance was at zero).

I ensured that everything was in (refund and payment) before the due date of 16 April and the statement does show that.

Thanks.

redpete

lisyloo wrote: »

<refunds> do count towards you balance.
The most likely explanation is that payment was DUE before the refund appeared. That's unfortunate but yes all credit cards work like that.

Tesco (and maybe others) have the odd situation where refunds do reduce the balance but do not count as normal payments. So even though the order of events might be:

1 - £150 transaction
2 - statement produced with balance = £150
3 - refund of £100
4 - payment due

You will still be expected to make a payment of £150 to avoid paying interest.