Tesco Credit Card overcharge warning

MFWannabe

A quick warning to anyone who has a Tesco credit card. I checked my online statement this morning and it said i had £16 in purchse interest charges. I clear this card in full every month.
When i rang them they said they couldn't see why i'd been charged it and they'd had some system changes which may have caused this to be charged!!
They will make a lot of money out of people who don't check and don't question it

Waterbabies

I've regularly had charges added by telco CC, for no reason - I always pay it off in full, and well within time. They have always removed the charges when I've rung, but you need to watch them every single month - they just slip them in, and hope you won't notice I think. But in all fairness, their customer service is pretty good, and I've always had them refunded.

Buzby

By extension, automated DD payments are a bad move if you blindly trust the card company to take what BR need.

Be vigilant, as the only person who cares about you being treated fairly.... Is you!

giblet10

Could be teething trouble with their new system - they MIGHT be telling the truth..but like all credit card providers, don't trust them and keep an eye on your statement entries like a hawk..

rb-one

We missed one payment by a week on the CC and I have been informed that I will continue to be charged interest for the next two statements! So you get charged 3 times for one missed payment. You cannot clear it untill you have paid in full two statements. It may offer points, but the charges are now outstripping the benefits!.

Gromitt

rb-one wrote: »

We missed one payment by a week on the CC and I have been informed that I will continue to be charged interest for the next two statements! So you get charged 3 times for one missed payment. You cannot clear it untill you have paid in full two statements. It may offer points, but the charges are now outstripping the benefits!.

On your next statement don't wait until the due date, pay it off as soon as you receive it. If you wait until the due date, you will be charged more interest.

rb-one

Apparently this has no impact, you are still charged interest for three statements. First hit miss the statement, second hit even if you pay off in full and then a third hit even if you pay off in full. After that you are then interest free. I am waiting for an explanation in writing, because the help line found it hard to explain the process...... It is difficult to understand how you get penalised 3 times for one missed payment.

rb-one

It is also based upon the average outstanding daily balance that means the amount is far higher than anticipated.

Gromitt

It's called trailing interest, and is why you should pay the next statement as soon as you receive it, to minimise the amount of interest. If you wait 20 days (before statement date and due date), you could have another 20 days of interest on the next statement.

See https://forums.moneysavingexpert.com/discussion/1251129
and http://www.extracreditcards.com/trailing-interest/

Scooby31

The experience and level of "service" I am currently receiving from Tesco credit cards is so shockingly bad that I would urge anyone to rethink using them. Long and short it that they have added £2000 onto my account that is not my spend (it is their error by their own admittance) and are now sending me letters to add on charges, reduce my credit limit and to add insult to injury I have also now been advised by excellent credit rating has been downgraded. I have been trying to sort this issue out with Tesco since March. They do not return phone calls and do not answer letters. The call centre staff clearly have no information to hand and are, frankly, so disinterested it's not true. Looks like my next port of call is the financial ombudsmen. They are scandalously incompetant. This is both distressing and stressful and they couldn't care less!!!

Voyager2002

rb-one wrote: »

We missed one payment by a week on the CC and I have been informed that I will continue to be charged interest for the next two statements! So you get charged 3 times for one missed payment. You cannot clear it untill you have paid in full two statements. It may offer points, but the charges are now outstripping the benefits!.

Ask them to give you a "settlement figure". They can then calculate all the interest that you have incurred but that has not yet been added to your account, and the interest on the interest... and give you a figure including everything. So long as you pay that figure within the time-frame they give you (generally a couple of days) that stops the whole process. Otherwise, of course the interest continues to mount up over the next couple of months, and the eventual cost is rather more than the "settlement figure".