Tesco Bank sending contradictory messages on overdraft - anyone else?

K_W_the_Second

I've just had a slightly worrying if not threatening letter from Tesco Bank headed (in red) "PLEASE READ - THIS IS A FORMAL DEMAND FOR REPAYMENT OF YOUR OVERDRAFT" and ending (in bold) "This is extremely serious. Please do not ignore this letter. You must get in touch with us immediately to avoid further damage to your credit file." It's that little word "further" that troubles me, and may result in my raising a formal complaint if my file has indeed been damaged.

It's all about a £500 o/d I took out in July to take advantage of their interest-free offer, which expired on 31 October, the day I received the letter. As it happens I had paid in £500 the day before in case Saturday payments didn't get credited until Monday. My arranged o/d limit was (and still is for now) £2000, though the £500 was the maximum interest-free amount. The letter tells me they are withdrawing the limit ("permanently removed", they put it) on November 24. I have no problem with this other than the tone, and the suggestion I have done something wrong. (Btw, I don't make much use of the account any more and would have closed it had the interest-free offer not come along.)

An earlier letter a few weeks back had advised me to phone them, which I duly did, only to reach someone who couldn't deal with it and who passed on a message for someone who could to ring me back - which, of course, never happened. While waiting for an answer a pre-recorded message told me something to the effect that their o/d letters were a formality that could be ignored, so I didn't commit to another long wait trying to ring them again.

I still fail to understand why they are so troubled by my actions and am worried that they have messaged my credit file beyond presumably recording that I have used £500 of the £2000 o/d facility.

So - is it just me, or have others been treated as financial deviants too?

King Weasel

[Deleted User]

K_W_the_Second said:

I still fail to understand why they are so troubled by my actions and am worried that they have messaged my credit file beyond presumably recording that I have used £500 of the £2000 o/d facility.

Check your credit files to see if they have been 'messaged'.  There is unlikely to be anything on there that you're not expecting.

Chino

I would want Tesco Bank to explain in what way a "credit file" can be "damaged". If Tesco Bank means that it will report unrepaid overdrafts to credit reference agencies then it should say that and nothing more. The use of the word "damaged" is clearly intended to frighten and intimidate the recipient of the letter. That alone is worthy of a complaint.

onlyfoolsandparking

Does appear a little heavy handed although I've never liked Tesco because of the way they conduct business (ruthless). They are of course well within their rights to demand immediate repayment of the overdraft same as any other bank. If it were me I would get it dealt with and close the account, vote with your feet that's my motto.  

K_W_the_Second

Thanks for your prompt messages. I certainly intend to check my Experian records. I was going to close the account in any case. Tesco haven't actually demanded immediate repayment - they've given me until November 24 though I cleared it before their interest-free period expires, as I always intended. I agree the whole tone of the letter is intimidating, for no obvious reason.

I hope anyone else getting this treatment posts on this thread.

King Weasel

IvanOpinion

Probably just an automated letter, maybe at the time they thought 'hey we can just use this template that already exists' without realising that it was not the most appropriate for certain circumstances.

sheramber

Letters like that  are usually processed days in advance and will not necessarily apply to the current circumstances.

K_W_the_Second

But the letter was never appropriate to my circumstances, current or past.

King Weasel

Thrugelmir

Did you use the account for any other activity or just borrow the money? 

YorkshireBoy

I've previously stoozed 0% overdrafts when limits and savings interest rates were both more favourable than now, eg £10K with Santander and £7.5K with Nationwide and both returning circa 3-4% (those were the days!).
However, I wouldn't want a £500 (Covid lifeline freebie) overdraft usage reported to my credit file when all I was making was 1.xx% for 3 months, which must be somewhere close to £1.25
And if it was for a purchase I'd rather have used my savings.

K_W_the_Second

Thrugelmir said:

Did you use the account for any other activity or just borrow the money? 

I only used it occasionally to pay in and then withdraw small amounts to keep the account active, so the answer is effectively no. But how might this have a bearing on Tesco's behaviour?

King Weasel