Real Issue with Tesco Bank loan - please help! Affecting credit score!

1212Bill

Hi guys,

Ive had a bit of a shock with my credit score recently, Im as a default very careful with making sure any account I have are paid off in time and usually have a very good credit rating.

I have about 7 settled accounts and 12 open accounts on my credit file.


All of those, bar one lender, has never had a late payment. I have credit cards, and one Tesco loan.

The Tesco loan is giving me real problems. It looks like once in a while a direct debit to them has bounced, it happens right? Every other lender seems to be able to re-claim the Direct Debit a few days later and we're all good.

Tesco however seem to leave it weeks before trying again, and in between this time they report to the credit ref agencies that it has gone unpaid. Now, I think this is really unfair, they should attempt it again right before submitting to Experian. Anyway, I called them about it, which was like trying to platt !!!!, honestly painful trying to get through or getting any answers from them. They have no online payment portal for you to be able to top up your account if you have missed a payment etc. SOO.. bare with me and thanks if you got this far... If you look online it says you can make payments if you miss a payment using a bank account and sort code specific to your loan. So I had two missed payments within around 3 months last year, so I made payments the same day it was missed to this sort code. Without my knowing Tesco returned these payments to me, each time and then reported me for non payment.

Since then Ive "missed" 3 more payments. I really feel like the way they work, is really affecting my credit and Im really at a loss as to what to do. I have tried to challenge this using credit expert but I've not got far. Have I got any grounds to have them removed from my file as I made payments and can prove so on my bank statement? I didn't notice they returned the payments for a while.

In short, ive never missed a payment from any other lender Yet Tesco bank has reported 5-6 times in the last few years that ive missed a payment
My credit score is 800 and there are no other negative factors influencing my score, just Tesco

[Deleted User]

1212Bill wrote: »

The Tesco loan is giving me real problems. It looks like once in a while a direct debit to them has bounced, it happens right?

Shouldn't do, no.

Is this due to some kind of error? Or do you have insufficient funds to make your contractual payments?

Ignore your score. You don't know what's affecting it and it doesn't matter.

If you believe you have not missed payments, then raise a complaint.

Willing2Learn

Hi 1212Bill and welcome to the forum

Unfortunately, as you have stated "once in a while a direct debit to them has bounced", they are factually correctly reporting the data.


Some lenders, as a matter of goodwill, will allow a few days leeway. For example, Barclaycard allow a payment to made 14 days late and will not mark the payment as 'late' on your credit file. They do however still charge the late payment fee.


You need to contact Tesco and ask them for a little goodwill. Explain that the missed DDs were your fault, that you accept full responsibility, that you accept a late payment fee, but could they remove the negative markers from your file. I do not think they will comply. But there is no harm in asking. I do not think that Tesco have acted unfairly.

badmemory

Most banks will accept an oops once, more than that & you are pushing your luck. You need to make sure this cannot happen again or it may seriously effect your financial future for the next few years.

sourcrates

The majority of the major banks/lending institutions, will automatically re-attempt a failed DD within 10 working days, they usually write to you and confirm this is the case.

However, this is not generic across the board, and some lenders seem incaperble of doing this, in a world where you can talk to someone on the otherside of the globe, in real time from your wrist watch, it really is poor show, its quite possible Tesco fall into this catagory.

Is it worth complaining ?

Its always worth a written complaint, the systems they run may not be set up to re-attempt payment twice, in the same payment cycle, but if one lender can allow 10 days grace, why can`t all of them ?

You may not get anywere, but then again you may get a goodwill gesture, stay off the phone, written complaint is best.

1212Bill

Deleted_User wrote: »

Shouldn't do, no.

Is this due to some kind of error? Or do you have insufficient funds to make your contractual payments?

Ignore your score. You don't know what's affecting it and it doesn't matter.

If you believe you have not missed payments, then raise a complaint.

- I mean it happens where cash flow wise, on that particular day I mustn't have had enough in that account to cover it. I didn't manage to transfer money from another account in time. Unfortunately I'm not flush, working all hours god sends to provide for a young family and its tough for me at the moment.

- Id love to ignore my score but im trying to apply for our first mortgage at the moment. It is having an impact and its only Tesco doing this.

[Deleted User]

If you don't ignore your score, you"re going to waste a lot of time and energy on something that doesn't matter.

It's not a factor in lending and will have nothing to do with you getting a mortgage. It's the contents of your credit files that matter.

Willing2Learn

1212Bill wrote: »

...Id love to ignore my score but im trying to apply for our first mortgage at the moment. It is having an impact and its only Tesco doing this.

You are confused. A mortgage lender is primarily interested in how you manage you credit files. They want to see data that is clear of missed payment, late payments, over limit marker or any other negative marker. They want to see that you are able to adhere to your contractual obligations. They definitely do not use your 'credit score'.

enthusiasticsaver

You need to get more on top of your finances if you are having missed payments due to insufficient funds. Your credit score doesn't matter but late payments do and will have an affect on any mortgage application. Do you use any money software or spending tracker so you can keep on top of what bills are due and how much you have in your account?

YorkshireBoy

1212Bill wrote: »

- I mean it happens where cash flow wise, on that particular day I mustn't have had enough in that account to cover it. I didn't manage to transfer money from another account in time. Unfortunately I'm not flush, working all hours god sends to provide for a young family and its tough for me at the moment.

So get yourself a simpler life...put all your cash, or at least an extra months worth of bills, in your bills account. Problem solved.

BoGoF

So your complaint is that you have missed more than one payment due to not having enough money in your account and you think it's unfair that Tesco are reporting missed payments.

Seriously?

Get a grip of your finances.