Beware 0% tesco bank offer nov-dec 2016 if you usually pay balance in full

abri123

BEWARE 0% TESCO BANK OFFER NOV-DEC 2016 IF YOU USUALLY PAY BALANCE IN FULL

Misleading offer - Tesco Bank offered 0% interest on purchases until March 2017 at Tesco from 1st November to 31st December 2016.
On January's statement, I got charged interest.

Very misleading offer as apparently unless the balance was paid in full (including any 0% element) that interest would be charged on all non-tesco purchases.
Also, the offer was 'purchases from 1st November...', and the email offer was not received until 22nd November, making it impossible to utilise the offer as there would already be non-tesco purchases on the account during the time between 1st and 22nd November.

Why am I paying interest at all as surely the allocation of payments should have taken payment to all chargeable charges 1st?

For clarity, I had £87 of Tesco purchases at 0% and £257 of non-Tesco, so I paid off everything (£257) except the 0% element.
Apparently the only way to avoid being charged interest on the non-tesco bits would have been to pay off my full balance in December, making the offer irrelevant and redundant to everyone that pays their balance in full each month (inc. myself) unless the card is only used at Tesco for from November 2016-March 2017.

The offer encouraged me to spend more than I normally would have, and incurred interest charges where I normally would not have any (full payer).
To avoid more interest charges I therefore now have a bigger than expected bill to pay in January, when I thought that the majority of the balance would not be liable until March.

I have had the interest charge credited back to me in a future statement, but as purchases are charged interest daily until repaid in full, does that mean that;
1: I'm still going to accrue another interest charge as the statement payment date isn't until 28th Jan?
2: Will my credit score have been affected as I now have incurred interest due to a 'non-full balance payment' for the first time ever?

Nowhere in the offer terms was this explained and I am generally very knowledgeable regarding maths/figures etc.

anythingbutordinary

I would suggest that based on what you're telling us, there's something that you're not telling us (not purposely), or that they've made a mistake, hence the interest refund.

1) depends when you cleared the remaining balance, you'll probably have to pursue another refund.
2) No, as long as you made the minimum payment.

abri123

anythingbutordinary wrote: »

I would suggest that based on what you're telling us, there's something that you're not telling us (not purposely), or that they've made a mistake, hence the interest refund.

The Tesco Bank man on the phone said that "the offer terms were not very clear, and he would have read it the same way, as it's useless if you're one of the few people that pays in full, which wasn't who the offer was intended to be directed to" so refunding the interest payment due to that. Also, reading about there's many in the same situation that have challenged it.

anythingbutordinary

There you go - they've made a mistake and not been clear with their offer and are therefore refunding the interest charges.

Shakin_Steve

https://forums.moneysavingexpert.com/discussion/comment/71901584#Comment_71901584

boo_star

Shakin_Steve wrote: »

https://forums.moneysavingexpert.com/discussion/comment/71901584#Comment_71901584

Yep.

Another person who doesn't understand how these things work and doesn't read the offer. It's quite clear.

abri123

boo_star wrote: »

Yep.

Another person who doesn't understand how these things work and doesn't read the offer. It's quite clear.

Which bit states where it was clear? Feel free to quote the section.

boo_star

abri123 wrote: »

Which bit states where it was clear? Feel free to quote the section.

Nothing.

The sooner you accept that customer services will pander to you and give in, the better.

Superscrooge

abri123 wrote: »

anythingbutordinary wrote: »

I would suggest that based on what you're telling us, there's something that you're not telling us (not purposely), or that they've made a mistake, hence the interest refund.

The Tesco Bank man on the phone said that "the offer terms were not very clear, and he would have read it the same way, as it's useless if you're one of the few people that pays in full, which wasn't who the offer was intended to be directed to" so refunding the interest payment due to that. Also, reading about there's many in the same situation that have challenged it.

I agree the offer was no use to anyone that always clears the balance in full. The only benefit is to those that regularly pay interest each month.

From previous posts Tesco seem to have now realised this and appear to be willing to refund interest charges in situations similar to yours.

I wouldn't expect any adverse effect on your credit file