Tesco Interest Free credit card 9/12 months

milliecazzie

Hi

Has any one had this problem with the Tesco Credit card?

I took it out in Feb 07 and the agreement was 12ths interest free on Tesco purchases, 9 months interest free on non Tesco purchases. I have been paying the minimum amount each month by direct debit which has been reducing the non Tesco purchases element and no interest charged to date.

Last month I made a lump sum payment by debit card to clear the non Tesco purchases (as 9 months period coming to an end). They allocated it to the Tesco purchases. (?!)

Today I get my statement and it says £44 interest is due to be paid next month if I only pay the minimum amount due. Why? As the balance left is just the Tesco purchases and they are on the 12 month interest free deal.

I rang Tesco and they said they can allocate the money received how they want!!! I said well that is not interest free on Tesco purchases for 12 months then is it?

They said you have to pay it to zero THEN your Tesco purchases after that will be interest free until Feb 08 - but surely that is 9months + 3 months. They offered the card as 12 months interest free on Tesco purchases.

Any advice would be gratefully received, thanks.

Carole

johnmoney05

I thought non-Tesco purchase only got 3 months interest free?

milliecazzie

There are/were various credit card deals with Tesco, mine was specifically 9/12mths for non tesco/tesco purchases.

Has any one had this problem and resolved it or can advise me please?

YorkshireBoy

Most credit cards' order of payments are geared to repay the lowest rate first, leaving higher rate balances to accrue higher rate interest!

The Tesco summary box states...

When we receive a payment we will use it in the following order:

• To pay any interest and/or charges;
• To repay any special offers:
• To repay all balance transfers and purchases (except special offers);
• To repay all advances, money transfers and cheques;
• To repay 'Tesco Buy Now-Pay Later' promotional offers shown on any statement.

Please refer to 2D(b) in your Agreement for further details.

After 3/6/9 (whatever) months your non-Tesco purchases cease to be 'special offers' and so move down the list, meaning the Tesco purchases are now the only 'special offers' on the account...and as such swallow up your minimum payments meaning NOTHING is paid on the non-Tesco purchase balance.

Does condition 2D(b) back up what I've said above?

HannaB

Thanks for the above YorkshireBoy. It really helps to explain things.

Milliecazzie, I am in the same boat as you. I opened my Tesco CC with a 0% balance transfer in June and then had to buy a used car in September! I am due to pay be first lot of interest at the next bill.

Basically Tesco have been using my payments since June to clear the interest-free balance transfer, leaving me with an amount accruing interest. Very cheeky!

It is only interest free on non-Tesco purchases for three months.

milliecazzie

Thanks Yorkshire boy.

Yes 2D(b) says that.

But I don't agree with you, as surely the Tesco purchases are the last item - 'to repay Tesco buy now pay later' promotional offers shown on any statement'.

Anyway, to update you I have just had another (17 minute) call to Tesco. It really does seem to me to depend on who you speak with - the lady this time said I am correct the deal is 12 months and as I have cleared the non Tesco purchases there should be no interest to pay next time. She is going to pass my details on to re pricing team to get them to correct the mis allocation of the cheque - HannaB - please re check your details and phone Tesco credit card if necessary - don't be fobbed off.

The lady I spoke with assured me I have no interest to pay until Feb 08 - fingers crossed, I wait for my next statement!

YorkshireBoy

milliecazzie wrote: »

But I don't agree with you, as surely the Tesco purchases are the last item - 'to repay Tesco buy now pay later' promotional offers shown on any statement'.

These are not to be confused with your normal 'weekly shop', and seem to be restricted to 'selected' purchases only...

Buy Now - Pay Later on selected purchases from Tesco Direct

Buy online and pay NOTHING for up to 18 months

• Order goods online from Tesco Direct and you can Buy Now - Pay Later on selected purchases which means you could pay nothing for up to 18 months.¹
• Visit Tesco Direct at www.tesco.com to see the great value products that you can Buy Now - Pay Later with a Tesco Bonus Credit Card.

Anyway, to update you I have just had another (17 minute) call to Tesco. It really does seem to me to depend on who you speak with...

...which is why you should check your T&C's, and ask for others' experience on boards such as this one.

...the lady this time said I am correct the deal is 12 months and as I have cleared the non Tesco purchases there should be no interest to pay next time.

They're guessing! They're not the people who write the T&C's.

The lady I spoke with assured me I have no interest to pay until Feb 08 - fingers crossed, I wait for my next statement!

I wish you luck, and suspect you'll need it!

aristote33

All that sounds very concerning and complex as I just took a Tesco Credit Card.

I suppose the best way to avoid the troubles you got in with the payments allocation is to use the Tesco Credit Card only for purchases at Tesco. That's what I'm going to do...

Besides, I have a question about setting up the payment type.
The direct debit form on the web interface offers as 'preferred mode of payment' either minimum payment or full payment.

I would like to select minimum payment now to enjoy the 12 month free interest period on Tesco purchases.

However, I am not sure what happens after the 12 months are gone.
Is there an option on the Tesco CC web interface to change my payment option then? Will I have to send a new direct debit form to Tesco as I'm going to do now? Will I have to liaise with the bank who holds my current account used to repay my Tesco CC?

As a premice to understand the situation, I must say I can't have a debit card from my current account bank.

Thank you in advance.

Will

johnmoney05

aristote33 wrote: »

I would like to select minimum payment now to enjoy the 12 month free interest period on Tesco purchases.

However, I am not sure what happens after the 12 months are gone.
Is there an option on the Tesco CC web interface to change my payment option then? Will I have to send a new direct debit form to Tesco as I'm going to do now? Will I have to liaise with the bank who holds my current account used to repay my Tesco CC?

After 12 months, you can call the Tesco CC customer service. They will either change for you or ask you to send them a new DD authorisation. Check your statement untill it clearly says the amount will be collected in full by DD from your bank account.

By the way, you need to clear the balance before the 12 months interest free period expired.

aristote33

:cool: Thanks a lot for that, johnmoney05. Very useful.

When do the 12 months start? Is there a precise starting date for the 12-month period, technically? Like the date of application for the CC?
In other words, is it possible for me to work out the end date of the 12 month period?

Once the CC has been received, is the 12-month period going to be 12 consecutive months in a row, whatever use is made of the card? In other words, does it matter in the 12 months count if the card was not use at all in between CC statements?

YorkshireBoy

aristote33 wrote: »

...is it possible for me to work out the end date of the 12 month period?

Never, ever, ever, work out/guess/assume/think (delete as required) the 0% end date.

If it's not crystal clear (eg Egg's "until 1st January 2009"), then you must always ask the provider. I'd suggest a good time time could be during the activation phone call.

Always note what's said, and note also the CSA's name/ext number and the date & time of the call.