Tesco Credit Card Over Limit Fee

sqster123

Im hoping someone can help as this has confused me. I have a Tesco credit card with a small credit limit £250.

In my Nov statement produced 13th Nov I was charged a £12 over limit fee. Unfortunately the massive £3.67 interest took me £1.61 over my limit and therefore was charged £12. Making my outstanding balance £263.61

On the 24th Nov I paid the card off in full so I made a payment for £263.61.

So for the rest of the month my balance was £0, When my December statement was produced I had £1.67 interest charged and ANOTHER £12 over limit fee.

I couldn't understand how they could charge me an over limit fee again? So I wrote to Tesco and complained. They have replied and said

A £12 over limit fee was automatically applied at the end of the statement cycle. As you account remained over the limit at the beginning of the next cycle a £12 fee will also be applied at the end of that statement cycle.

So basically for going over your limit you get charged £24 not £12 as according to their justification how could you bring your account into order as when the statement is produced the start of the next period is going to be the day so you are bound to still be over the limit??

Is this right or should I call Tescos back?

noh

You have been charged in accordance with their T+Cs
See 7.2 of https://www.tescobank.com/assets/sections/credit-cards/pdf/general-conditions.pdf

Chrysalis

yeah basically the over limit spread across two cycles.

PeacefulWaters

Stop running your card so close to your limit.

It's not a spending target.

Fireflyaway

It seems really unfair but it was the timing. If you were over at the end of one billing period and still over at the start of the next that's why. I got into a similar mess with an old capital one card. I got it to improve my credit and it made it worse! I closed it in the end.
I second the advice to not go so close to the limit. Using a high percentage of available is deemed poor management and will lower your credit score.

chattychappy

Seems unfair and possibly unenforceable. Just because something is in the T+Cs doesn't make it valid unless they can demonstrate they were £24 out of pocket because of your breach.

But I wouldn't quote the law at them and get shirty. Just ring up nicely and say you feel it a bit disproportionate considering you put the account back in order when you realised the problem and you were only £1.61 over anyway.

Certainly life is simpler if you don't run things so tight. Try to estimate what interest will be if you don't pay in full.

sqster

PeacefulWaters wrote: »

Stop running your card so close to your limit.

It's not a spending target.

Very helpful... not

jonesMUFCforever

sqster wrote: »

Very helpful... not

Why not - you read it and it must have stuck in your throat to comment like you did.
If it means you don't run the card so close to the limit then you will benefit going forward.

Two things I would do 1 Think that the limit is £200 not £250 so that this does not happen again and 2 Ask for a higher limit even if it is only a few hundred pounds then go back to 1 again.

Lizabeth21

jonesMUFCforever wrote: »

Why not - you read it and it must have stuck in your throat to comment like you did.
If it means you don't run the card so close to the limit then you will benefit going forward.

Two things I would do 1 Think that the limit is £200 not £250 so that this does not happen again and 2 Ask for a higher limit even if it is only a few hundred pounds then go back to 1 again.

Hear hear to this. Absolutely spot on advice.

Samsung_Note2

PeacefulWaters wrote: »

Stop running your card so close to your limit.

It's not a spending target.

Very true...just like Speed Limits..its a Limit not a target,get caught exceeding and you get stung with a fine.;)

PeacefulWaters

Samsung_Note2 wrote: »

Very true...just like Speed Limits..its a Limit not a target,get caught exceeding and you get stung with a fine.;)

Although you can get done for driving to slowly. So not the perfect analogy!