Tesco credit card - unfair?

callcentreworker

redpete wrote: »

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

If the DD was set up to take the full payment, this is normally taken 5 working days before the due date.

5 working days to check the account, check if payment was made and if not, then make a manual payment to avoid late fee and interest.

Sorry if its not relevant, just pointing out how it works.

MisterMotivated

Hmmm, whenever I've switched DD amount from minimum/other to full payment, the full payment has still come out on the usual payment date, not 5 days before

Herbalus

callcentreworker wrote: »

If the DD was set up to take the full payment, this is normally taken 5 working days before the due date.

5 working days to check the account, check if payment was made and if not, then make a manual payment to avoid late fee and interest.

Sorry if its not relevant, just pointing out how it works.

I hope you don't work in a credit card call centre. None of my direct debits are taken 5 days before the due date.

CLAPTON

Herbalus wrote: »

I hope you don't work in a credit card call centre. None of my direct debits are taken 5 days before the due date.

indeed not

but some CC have different due dates for minimum payment and full payment : 5 days difference is typical

I don't work in a call centre but I do read the writing on my monthly statements occasionally

StuC75

!!!!!!? The OP states there Direct Debit was set for the Full Balance.. so might just be a call centre worker not listening to what has been asked..

Generally DD's are a 'later' method of paying the bill anyway, since they tend to come out of the account and be credited to the account on \ nearest to the actual date.

Therefore to make a manual payment in time for the due date then it would need to be paid several days earlier so as to be cleared with the card company in time.. Which is also pointless for OP since that times with payday of the 31st\ last day..

Speak to the card provider to see if possible to adjust the Statement and Due date - making it fall around the 1st of each month would ensure that this doesnt happen - since would have a clear day difference..

Do wonder how many more of this kind of questions there will be next week following the bank holiday..

callcentreworker wrote: »

If the DD was set up to take the full payment, this is normally taken 5 working days before the due date.

5 working days to check the account, check if payment was made and if not, then make a manual payment to avoid late fee and interest.

Sorry if its not relevant, just pointing out how it works.

CLAPTON

StuC75 wrote: »

!!!!!!? The OP states there Direct Debit was set for the Full Balance.. so might just be a call centre worker not listening to what has been asked..

Generally DD's are a 'later' method of paying the bill anyway, since they tend to come out of the account and be credited to the account on \ nearest to the actual date.

Therefore to make a manual payment in time for the due date then it would need to be paid several days earlier so as to be cleared with the card company in time.. Which is also pointless for OP since that times with payday of the 31st\ last day..

Speak to the card provider to see if possible to adjust the Statement and Due date - making it fall around the 1st of each month would ensure that this doesnt happen - since would have a clear day difference..

Do wonder how many more of this kind of questions there will be next week following the bank holiday..

this is not the case with Tesco CC

if you pay by DD for the full amount it comes out 5 days before the 'due' date

System

Why use DD at all? Send a FP from cleared funds once a month.

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:

Gentoo365

callcentreworker wrote: »

If the DD was set up to take the full payment, this is normally taken 5 working days before the due date.

5 working days to check the account, check if payment was made and if not, then make a manual payment to avoid late fee and interest.

Sorry if its not relevant, just pointing out how it works.

That is not quite how it works. Full details are governed by the direct debit rules (and also the payment services regulations).

While the instruction can be 'set up' in advance it is not actually sent to the bank until the day before the debit is requested, it goes through the old BACS system. It is then processed in the morning of the day it is due. So a direct debit due 31st July will be processed on the morning of 31st July. So that is when the balance, or available overdraft, or shadow limit needs to be sufficient. As someone mentioned some banks may start to re-request payment later on in the day. However that can add additional problems if someone believes it has been rejected, pays a bill via another method, and ends up paying twice.

What the OP in this situation should have done is paid Tesco directly using 'faster payments' so that they get the funds that day.

If Tesco then argued about 'clearing time' or some such delay then the OP would then point out payment services regulations whereby a payment has a value date as per the date it is received.

It is worth noting that often credit card companies and banks will reverse off charges if someone is just a few days late and contacts them. However this is less likely for the companies that have the big promotional rates, as they need to be a bit more strict given their business models.

Gentoo365

Heng_Leng wrote: »

Why use DD at all? Send a FP from cleared funds once a month.

I find that the best (safest) option for most people is to set up a direct debit for the minimum payment. Then pay the rest by Faster Payments via internet banking. Unless of course you are paying the full balance every month (in which case DD for that) or you are paying a fixed amount (then a Standing Order is probably best).

The reason is that if you forget, or internet goes down, or you block your passwords, or some other reason means that you do not manage to set up the FP, then you know that at least the minimum payment is going out.

In addition, I would always set any payments to be at least 2-3 days after payday, and I would always make sure the most important payments go first.

I just thought of something actually. In the OP situation there would not be any problem if the 31st was payday. As nowadays all banks process the automated morning payments in before the direct debits, and most companies payroll is processed in such a way that it is paid in the morning it is due.

osprey221

I to have just had a problem with charges on my Tesco Credit Card for paying too early! They have charged me £24 for two late payments when in fact the payments were set up by standing order to be paid earlier than the statement date. Thought I was being good to Tesco by paying them early, obviously not.
Used to have a Halifax Credit Card and cannot remember them doing this?
I set up a standing order 2 days after the latest payment date on my first statement after paying the first payment by direct transfer from my bank, so no payments have been missed, just charges levied against me for paying early.
Phoned to complain but not very helpful and stood by their charges.