Tesco Bank Master Card Sting

abandonded

In order to avoid paying interest, we always pay off our credit card on the last day of the month. At one time it was by phone but nowadays we transfer the money by e-mail. So it was that on Friday 31 May, my wife sent off the required balance and even added an extra £200.00 for spending made in May but not yet included in the bill.
We were surprised therefore when £13 was added to our account for late payment. Phoned Tesco Bank and was told that because the money was transferred on a Friday (1 day before the due date), it would not go through until the Monday and was therefore classed as a late payment. And she wouldn't budge. This has never ever happened before and so we have decided to change our card.
Has anyone else had such an experience?

Herbalus

There are lots of people who have had that experience on here. Essentially, they all say the same thing: the payment didn't reach the account by the due date and therefore there was a charge. The poster always says they paid before the due date, and the company always says the payment didn't arrive in time.

It's important to understand that an electronic payment (usually a faster payment - definitely not an email), has to arrive by the end of the next working day. That would be Monday, or Tuesday (if you sent it after 5pm), so it's too late for Saturday.

Normally payments are faster than this, but don't rely on it, because there can be delays. I suspect that any other company will act exactly the same way, so don't worsen your card to spite them, as they are acting under the terms and conditions.

The official prevailing advice from MSE is that you have a direct debit set up to pay IN FULL (they always capitalise it as well). That way it is the banks fault, and not yours, if there is an issue.

P.S. did you mean a £12 late payment fee, not £13?

abandonded

Sorry, it wasn't a late payment fee- it was interest

socrates

When I had a problem with them I emailed the CEO - the very next day a lady from his office got back to me - within 2 hours the matter was dealt with and £40 Tesco Vouchers in the post

leeroy2009

abandonded wrote: »

Sorry, it wasn't a late payment fee- it was interest

well you quite clearly have not paid off the balance in full to be charged interest.

Herbalus

Clearly something isn't quite right.
- if the full payment was late and you were charged interest, why is there no late fee?
- if you paid off in time the balance plus £200 extra, why were you charged interest?

Did you pay any other amount to the card after your statement was produced i.e. in the two preceding weeks?

abandonded

leeroy2009 wrote: »

well you quite clearly have not paid off the balance in full to be charged interest.

Sorry, but the full balance was paid off plus an extra £200!

abandonded

Herbalus wrote: »

Clearly something isn't quite right.
- if the full payment was late and you were charged interest, why is there no late fee?.......... Tried asking the Tesco Bank woman the same question but she just kept repeating that the payment made on the friday wasn't received until June 3rd.

- if you paid off in time the balance plus £200 extra, why were you charged interest? .........No idea.

Did you pay any other amount to the card after your statement was produced i.e. in the two preceding weeks?.........Yes another £200 because we had used the card in May to pay the deposit on a holiday.

???????????????

dzug1

abandonded wrote: »

This has never ever happened before and so we have decided to change our card.
Has anyone else had such an experience?

Loads of people with loads of banks have had the same experience

You won't necessarily do any better by changing your card - many (??all) of them operate the same way. Some may be more amenable to a one-off refund if it's a first offence

Buzby

Brinkmanship remains a gamble, and you lost! You were extremely lucky that it has taken until now before before you got hit!

Anything could happen to delay a payment over and above a weekend & BH. I always ensure my 'faster payment' is instructed within 4 days of the cut-off to cover such eventualities.

abandonded

dzug1 wrote: »

You won't necessarily do any better by changing your card

I dont expect but this fact is far outweighed by the feeling of satisfaction we get from leaving Tesco Bank.:j

PS. In all the years that we have been with TB, until now, we have never paid a single penny of interest or had a late payment charge.