Tesco Xmas offer

Codlingfamily55

Hi I'm new here, but just wondering if anyone else with a tesco credit card has had an issue with the interest free Xmas offer. I always pay my card off in full, I use this card for all food n petrol purchases each month but pay it off. So this month I had £200 which showed up under the 0% deal so paid everything but that. On my new statement I have been charged £42 interest. When I rang up to query it they are saying that the interest free entitlement only works if all your monthly transactions are at tesco so you just pay nothing? This doesn't seem right to me? As my statement definitely splits the transactions into the special offer and what's attracting interest. They have waived the interest but in effect are saying that now £500 I've spent at tesco over Xmas period will have to be paid in full if I don't want to attract Interest. Anyone else had this? I've had an issue a few times this year with tesco charging interest even though balance paid by due date, it's only started happening since I manually startedi paying my bill and they always credit it back. Sorry for long post anyone any ideas? Thanks

molerat

Are you sure it is not because you did not pay the card off in full ?

If you do not pay the whole balance, even though part of the balance is at 0%, the remainder will attract interest from the date of purchase until paid off. A common trap for the unwary.

thecoffeehouse204

I always thought than any payments made to credit cards were automatically put to those transactions which were carrying the lowest apr. So in your case you've made the payment but instead of being put against the interest earning transactions they have put it towards the 0% purchases. Therefore you still owe interest on the £200 of interest earning purchases. This is why I never take up any of the 0% offers I get on our tesco card as we use it so much for day to day purchases it wouldn't be worth it

Dandytf

Xmas offer as I understood it was valid @Teso stores and Tesco online/direct etc.

I recently used a home delivery though a few quid short of clearing my balance before end Feb.

premierfella

thecoffeehouse204 wrote: »

I always thought than any payments made to credit cards were automatically put to those transactions which were carrying the lowest apr. So in your case you've made the payment but instead of being put against the interest earning transactions they have put it towards the 0% purchases. Therefore you still owe interest on the £200 of interest earning purchases. This is why I never take up any of the 0% offers I get on our tesco card as we use it so much for day to day purchases it wouldn't be worth it

That changed quite a while ago for most if not all cards (probably under direct or indirect pressure from the regulators). Payments on the Tesco credit card are applied to the highest APR first.

As already mentioned above, the interest will be for the standard rate items up to an including the date they were fully repaid - because the statement balance wasn't cleared in full.

Tesco's explanation of that is pretty poor, as if they had explained it correctly the OP would have finished the call understanding that any further interest charge on the next statement should be nil or close to it (depending on payment timings, entire >0% balance having been paid off, etc) unless there are some hidden terms to it that I haven't noticed.

The Christmas offer wasn't exactly earth-shattering in the first place really, given that the 0% only applies until the March statement.

20aday

From their website:

Applies to existing Tesco Bank credit card customers as at 30 September 2016. Excludes customers with an existing introductory 0% interest offer that expires between November 2016 and March 2017 and introductory 0% interest purchase offers expiring after March 2017. Also excludes Business card and Republic of Ireland customers.

Excludes purchases at Tesco Opticians, Tesco Mobile, Tesco Photo Labs, Tesco Travel Money, Tesco Bank (including Insurance), Costa at Tesco, Esso Petrol Filling Stations, Tesco staff canteen and all purchases made outside the UK.

Any purchases and balances outside the offer period will be charged at your standard interest rate.

The offer period expires on the statement date as detailed in the offer, after which any remaining balance(s) will revert to the relevant interest rates, as stated in the 'Summary of Balances' section of your statement. Your statement date is the date your statement was produced, not your payment due date.

The offers are personal to you and are not transferable. You do not need a promotional code to take up this offer. You must continue to comply with the terms and conditions of your credit card at all times during this offer period.

So, by rights, OP shouldn't be charged ANY interest on their qualifying spend in Tesco surely on the next statement?

Nebulous2

20aday wrote: »

From their website:

Applies to existing Tesco Bank credit card customers as at 30 September 2016. Excludes customers with an existing introductory 0% interest offer that expires between November 2016 and March 2017 and introductory 0% interest purchase offers expiring after March 2017. Also excludes Business card and Republic of Ireland customers.

Excludes purchases at Tesco Opticians, Tesco Mobile, Tesco Photo Labs, Tesco Travel Money, Tesco Bank (including Insurance), Costa at Tesco, Esso Petrol Filling Stations, Tesco staff canteen and all purchases made outside the UK.

Any purchases and balances outside the offer period will be charged at your standard interest rate.

The offer period expires on the statement date as detailed in the offer, after which any remaining balance(s) will revert to the relevant interest rates, as stated in the 'Summary of Balances' section of your statement. Your statement date is the date your statement was produced, not your payment due date.

The offers are personal to you and are not transferable. You do not need a promotional code to take up this offer. You must continue to comply with the terms and conditions of your credit card at all times during this offer period.

So, by rights, OP shouldn't be charged ANY interest on their qualifying spend in Tesco surely on the next statement?

I think the point others are trying to make is that they aren't being charged interest on their qualifying spend.

What maybe happening, in line with the bit in bold, is that they are being charged interest on everything else from the date of purchase, because they haven't cleared their previous statement in full.

It emphasises for me, as is often repeated on here, that most people just shouldn't mix promotional offers and spend on the same card.

Codlingfamily55

This is what I have assumed as well, otherwise there is no point to the offer. I paid off everything but the amount that had 0% attached to it, which was the tesco stores purchases, and o. My new statement it still lists this amount as being on Promotion at 0% until march. Thanks

York_Rose

I have also been conned by the offer after paying the whole balance, less the Tesco purchases of £98, and being charged over £20. They also told me that even if I pay of the whole January balance in full, I will have another interest payment due in February. I was furious, but they have offered to refund me the interest on the January statement, and again in February. Massive miss-selling, and there must have been a huge outcry from customers. They told me it would have been fine if I had only used the card on Tesco shopping, but that's really a nonsense to assume people understand that, especially at Christmas.

[Deleted User]

York_Rose wrote: »

that's really a nonsense to assume people understand that, especially at Christmas.

Why would people understand things less at Christmas?

Is it because of the excess alcohol?

Codlingfamily55

I actually rang back as I had made a formal complaint but wanted clarifications. They said they had actually reviewed it themselves and realised it was badly worded so they gave me interest free for whole spend thats on the card till march 23rd. Plus they are refunding the interest. It maybe worth another call back to them.?