Tesco Credit Card

DilbertJones

I have an outstanding balance on my CC at 0% this will be settled in full when I move house in the next 2 months (hopefully)

With that in mind I decided to no longer pay my fixed amount per month this month and only pay the minimum required as per the card terms. My reasoning is to save as much spare cash as possible prior to the move rather than pay off the debt which will be paid by the proceeds of my house sale.

When I tried to amend the DD online it was too close to the payment date and as such wouldn't have worked. I called their helpline to ask if what I was intending to do was ok, to which I was told this would be fine, I asked what would be the minimum required payment so I could pay by card.

I was advised to pay around £25 by card payment to cover the minimum required, I decided to play it safe and pay £35 This arrived several days before the required date.

I have checked today online and I have been charged a late payment fee of £12 and the website is telling me my minimum required payment was my fixed rate!!

This has really upset me now as I have just applied for a mortgage & would be mortified if I receive a mark on my credit record for this and end up having the mortgage rate increased or worse rejected!

Surely they cannot have the min payments be set to my fixed rate? This was £170.

Clive_Woody

DilbertJones wrote: »

I have an outstanding balance on my CC at 0% this will be settled in full when I move house in the next 2 months (hopefully)

With that in mind I decided to no longer pay my fixed amount per month this month and only pay the minimum required as per the card terms. My reasoning is to save as much spare cash as possible prior to the move rather than pay off the debt which will be paid by the proceeds of my house sale.

When I tried to amend the DD online it was too close to the payment date and as such wouldn't have worked. I called their helpline to ask if what I was intending to do was ok, to which I was told this would be fine, I asked what would be the minimum required payment so I could pay by card.

I was advised to pay around £25 by card payment to cover the minimum required, I decided to play it safe and pay £35 This arrived several days before the required date.

I have checked today online and I have been charged a late payment fee of £12 and the website is telling me my minimum required payment was my fixed rate!!

This has really upset me now as I have just applied for a mortgage & would be mortified if I receive a mark on my credit record for this and end up having the mortgage rate increased or worse rejected!

Surely they cannot have the min payments be set to my fixed rate? This was £170.

Best thing to do is phone them and get them to sort this out. Also check the T&Cs, in there should be what % your minimum payment should be, check whether the £35 was enough, if it was complain.

This is probably some sort of computer glitch,

DilbertJones

T's & C's state 1% of the balance, which was around the £2580 mark i believe.

I will call them up to clear my head I think

DilbertJones

All cleared up, £12 refunded, head free of worry

YorkshireBoy

DilbertJones wrote: »

All cleared up, £12 refunded, head free of worry

Just because a 'human' has given you some goodwill (ie the £12 refund), it doesn't mean their 'computer system' won't automatically report the breach to the CRAs.

Unless you've confirmed with the 'human' that it won't be reported?

DilbertJones

Yes the 'human' said nothing would happen regarding my credit file, and also confirmed my £35 payment was more than enough for a minimum payment.

MisterMotivated

Hmmm, interesting. I've just reduced the fixed payment on mine (not to minimum), but I did wonder what might happen as the last statement showed minimum payment as my previous fixed amount rather than 1%. I made sure to change it just after the last payment to give plenty of time to go through before the next statement is generated. Fingers crossed minimum now equals new fixed payment

DilbertJones

I think you maye have the same issue as me.

Their system is flawed IMO

StuC75

Theres no breach to report to the CRA's since the 'due date' is just for avoiding interest (and reduces down the potential maximum interest free dates that is available with a card). Late payment is only when it isnt received by the Statement date.

So a customer could pay 'late' between the due date and statement date, incur the late payment charge but still be reported as on time on the credit file..

Often Direct Debits are debited 'later' from the account holder - i.e. Due Date 20th, will be requested 'on' the 20th, but may not leave there account until a few days later - but will be credited on the due date and be on time.

What may have happened here is that the OP paid manually around the due date - but was received between the 2 dates hence the charge..