Tesco credit card - unfair?

summer73

I am a customer of Tesco Mastercard and have a direct debit in place to ensure the balance is paid off in full each month. Last month it was due to go out from 31st July onwards. On 31st July I checked my account and transferred enough money to cover the direct debit. When the next bill arrived I have been charged a late payment fee, return payment fee plus interest amounting to £62. I contacted Tesco who told me they had tried to take the money at 1am on 31st July and there had been insufficient funds. I find this improper, given some people get paid on 31st of the month, and need to know where I stand. Tesco are not being helpful. :mad:

[Deleted User]

Their's nothing improper about it. They told you it would be taken from 31 July and they tried to take it on 31 July.

If the DD date doesn't suit you, then change your payment date to one that does.

Gordon_Hose

Tesco attempted at collecting on the DD on the 31st July, which you were aware of. The only issue here is that you deposited the money too late and you're trying to blame Tesco.

People who get paid on the 31st usually set their DD's up to come out on the 1st, that way the money is definitely there to honor them.

You have no come-back I'm afraid.

_Andy_

"Tesco are not being helpful." - i.e. you mean they're fulfilling their end of the credit agreement whilst you're not?

DCFC79

summer73 wrote: »

I am a customer of Tesco Mastercard and have a direct debit in place to ensure the balance is paid off in full each month. Last month it was due to go out from 31st July onwards. On 31st July I checked my account and transferred enough money to cover the direct debit. When the next bill arrived I have been charged a late payment fee, return payment fee plus interest amounting to £62. I contacted Tesco who told me they had tried to take the money at 1am on 31st July and there had been insufficient funds. I find this improper, given some people get paid on 31st of the month, and need to know where I stand. Tesco are not being helpful. :mad:

In future keep a track of what is due to come out and transfer enough to cover whats to be taken but transfer it in good time.

Cycrow

Gordon_Hose wrote: »

People who get paid on the 31st usually set their DD's up to come out on the 1st, that way the money is definitely there to honor them.

althou every place i've worked at, the money has gone in at midnight so it wouldn't have been a problem anyways.

but if i have anything coming out close to pay day, i always leave enough money to cover it from the previous month

psychic_teabag

I seem to recall seeing something (perhaps correspondence from one of my various current accounts) saying that they're changing things so that they'll make a second attempt to pay a DD later in the day. Can anyone remember if that's a general change, or just one specific bank ?

OP: if you generally have to transfer money to an account specifically to cover the DD, would it be as simple to just pay it directly to the CC company ? Could perhaps also have a DD in place to pay the minimum, to avoid actually missing the payment.

Gordon_Hose

Cycrow wrote: »

althou every place i've worked at, the money has gone in at midnight so it wouldn't have been a problem anyways.

but if i have anything coming out close to pay day, i always leave enough money to cover it from the previous month

Ours is usually around 4am. Anyway, it makes sense that if you get paid on the 31st that your DD's are set up for the 1st. This thread is proof of why lol

pqrdef

DDs aren't instant. The payment claim goes in to BACS two working days before the payment date and the payee has no control over the timing after that.

Most banks pay out DDs soon after midnight. You can't rely on funds being available unless they were in by close of business the previous day.

Some banks give you another chance, they do another payment run in the afternoon, and may send you a text alert. The regulator wants them all to do that.

This may not altogether help, since payees might decide that payments arriving "too late" in the day will be counted as arriving the following day. I think Tesco are known to do this with FPs arriving on the payment date.

In any case, some people will still want to fund the account in the evening and expect the system to wait for the money and then send the DD. But a system like that would be too user-friendly, and much less profitable.

callcentreworker

If you had set up the DD to go out in full, this was taken 5 working days before the due date?

You would have had plenty of time to pay the balance in full manually before your due date and avoid these fees

redpete

callcentreworker wrote: »

If you had set up the DD to go out in full, this was taken 5 working days before the due date?

You would have had plenty of time to pay the balance in full manually before your due date and avoid these fees

Anyone else having trouble understanding what this means and how it is relevant to the OP's situation?