Tesco Loan Overpayment

SteveyJC

Hi all,

I have taken out a Tesco Loan. They permit overpayments and ideally I would like to do this - some months with a large payment of a few hundred, other months with smaller amounts - say £30 for example.

They say you have to phone up to make an overpayment, and decide whether you want the future payments reduced or the time taken to pay off reduced. I would always want it to be a shorter term to get it paid off quicker.

Is there an easier way to make an overpayment than phone them everytime? I probably would be less inclined to make a smaller overpayment if I had to phone them every month.

Thanks, Stevey

[Deleted User]

You can make payments online. But it seems that they would put it into a holding account until they could speak to you to establish your preference.

They don't suggest there is a default treatment for overpayments.

SteveyJC

Thanks. Frustrating, but perhaps they do this on purpose to put people off overpaying?

[Deleted User]

No - sounds like a rubbish system issue.

Never assume deviousness when incompetence is always the far more likely answer.

Helvetica_Van_Buren

SteveyJC wrote: »

Thanks. Frustrating, but perhaps they do this on purpose to put people off overpaying?

Unless I'm mistaken, they are under no obligation to allow partial over-payments. The fact that they do is quite a useful feature of your loan. Having to call up to do this appears to be common (I've just checked at the Sainsbury's Bank website) and shouldn't really be an issue for a functioning adult.

dano17439

I do the same. First time I made an overpayment by phone, they asked me what scenario I wanted. I told them reduce term and the lady said she would put a note on my account for any future overpayments to be treated this way. I know then send overpayments through my current HSBC account to Tescos no problems

SteveyJC

Helvetica_Van_Buren wrote: »

Unless I'm mistaken, they are under no obligation to allow partial over-payments. The fact that they do is quite a useful feature of your loan. Having to call up to do this appears to be common (I've just checked at the Sainsbury's Bank website) and shouldn't really be an issue for a functioning adult.

It's not this functioning adult I'm worried about, its the one on the other end of the phone.

SteveyJC

dano17439 wrote: »

I do the same. First time I made an overpayment by phone, they asked me what scenario I wanted. I told them reduce term and the lady said she would put a note on my account for any future overpayments to be treated this way. I know then send overpayments through my current HSBC account to Tescos no problems

Thanks, that's great to know. Much easier this way.

C.M.

I started overpaying my tesco loan in May, and after calling up 2 weeks in a row they advised about the online method, using the sort code and account number shown in your online loan account.

They asked if I wanted overpayments to always reducce the term and I said yes...easy as that - I then overpaid every Friday (I am paid weekly) until this week, when they took my final normal monthly payment.

One thing to be aware of is that although the over payment will appear on your account within minutes, the interest rebate usually took 3-4 working days to appear in the app / online, and then I would receive a letter giving the new final payment amount / date around 1 week later.

SteveyJC

Thank you. Do you think there is an appropriate minimum amount to overpay?

chanz4

I had them, just call them once and say all payments to reduce term. You can then pay as little as 1p via online banking and they reduce the intrest everytime