Warning for Tesco loan customers/potentials (includes UNAUTHORISED payment taken)

The_Boss

Hi all,

I've had nightmares over the past year or so with Tesco bank relating to overpayments on my account. The first few were applied correctly, with appropriate interest rebates when I overpaid. Then one month, instead of going down, my monthly repayment jumped up instead of reducing despite the fact the term was the same. The amount was not the same as Tesco had written to me advising that they would take. This was sorted but the same problem occured three more times with further overpayments and the third time it happened nothing changed even when I contacted them.

I wrote to them as staff on the phone were not helpful. They just sent me a loan statement (even though I'd already sent them a copy explaining why this was wrong as the final 3 loan payments to be taken were all after my account had a balance of £0). I wrote to them again and once more they sent me a statement. I then sent copies of my original statements, letters confirming change to monthly payments and asked for it to be escalated.

At this point, customer complaints contacted me and advised that their systems are not properly set up to accept overpayments on loans and that I should contact the complaints team each time I want to overpay so they can correctly calculate the interest rebate and monthly fee. They also advised that each time I overpay, I will receive a letter from Tesco Bank confirming my new monthly payments but these would be wrong and to go with the figures quoted on the phone (which were the sums taken from that point on! I find it astonishing that their systems are set up to not be able to accept overpayments and calculate them correctly when they offer it as a service. This is not acceptable.

I got to the point where I was so fed up that I carried out a super balance transfer from MBNA and made a lump payment to the point I had three payments left. One in April, one in May and one in June. The figures for each month were equal and confirmed over the phone. They wrote to me confirming what I would pay and on what dates. Then they took the final payment, unauthorised, along with my May payment last week, leaving me around £100 overdrawn on that account (I only use it to make payments for this loan so only transfer in a bit more each month than I pay out). I'll no doubt be hit with a fee by NatWest for that too, which will ruin my unblemished record of recent years (and only one late payment many years ago on an old credit card).

So there you go - a warning to all.

KingElvis

A warning so great you need to post it twice?

The_Boss

Sorry, started a new thread as didn't subscribe to the old one - just trying to delete it. Thanks for your valuable input.

MonkeyMad

So if the last payment was unauthorised ask for it back and ask NatWest to reverse the charges - presumably a DD? I don't see the earth shattering problem to your credit record if you just get it sorted?

The_Boss

MonkeyMad wrote: »

So if the last payment was unauthorised ask for it back and ask NatWest to reverse the charges - presumably a DD? I don't see the earth shattering problem to your credit record if you just get it sorted?

The main point of this thread is the fact that Tesco Bank staff admitted that they do not have their systems set up correctly and this should be a concern for all current and potential customers.

I'm waiting to see if a charge is applied to my account and will then of course be contacting NatWest if so. I don't fear damage to my credit report, just have a feeling of pride in not being irresponble and disorganised with my finances. I would ask for the money back from Tesco Bank but the hassle it takes to get through to them, including holding for average of roughly 15 minutes and the cost of the call, is just not worth it and by the time the money is returned it will be around two weeks before it is due to be taken again. Plus I don't want to risk them making further errors that need sorting out. But that's not the point - the extra money was unauthorised and should not have been taken.