Credit card charges

gadcam

Let me start by saying, I always pay off my credit card on full, that was, until June.
In May, I paid for a new kitchen using two credit cards. I transferred the money out of my ISA and paid Lloyds in full and on time. However, before leaving to go to France for a weeks motor sport, I couldn't place my Tesco Statement, so I setup a payment for £4400 to leave my account a few days before the due date and then forgot all about it. I knew this was approximately the balance and thought I'd simply sort the balance in July.
I've now received July's statement and have been charged interest. However, the charge is for full purchase price and not just the money outstanding as I under paid by £41.68. Total charges are £94.58. Tesco told me that if I had just paid the extra £41.68, interest would have been zero. This is in their information, but as I always pay on full, it's not something I had realised happened.
Is this normal for all credit cards? Has anyone encountered this before?
As I was being told this by Tesco, I was breaking my card in two. It may be correct, but I do not agree with this policy so I shall not be using Tesco's again.

YorkshireBoy

gadcam wrote: »

I couldn't place my Tesco Statement

You could have phoned them? Or if you'd been registered for online banking you could have checked online.

Is this normal for all credit cards?

Yes.

Has anyone encountered this before?

Many people report the same issue on these boards.

As I was being told this by Tesco, I was breaking my card in two.

A bit hasty!

It may be correct, but I do not agree with this policy so I shall not be using Tesco's again.

As stated above, all providers operate the same way*, so leaving Tesco was a waste of time...and has created you more work. Will you get a better reward package with your next provider?


* All purchases attract interest from day one. If, and only if, you clear the entire statement balance by its respective payment due date they waive this interest charge.

thenudeone

Every card works in exactly the same way and every card would have charged interest in these circumstances.

You did not pay the statement balance in full, so interest is charged on the daily balance from the date of each transaction. This is absolutely normal.

If you had set up a direct debit to pay the statement in full, there wouldn't be a problem.

Many people don't like DDs because they aren't "in control".
This is fine as long as you are prepared to actively check balances, statements, and due dates yourself. If you aren't able or willing to do that, let the bank take care of it and set up a direct debit.