Tesco unknown default

Techbe

Hello all,

I had a Tesco credit a few years ago. I was making payments on the online portal rather than have a DD set up. Some of these payments were classed as late due to the time taken to process the payment. For example paid January’s on 27th but wasn’t processed until February. These were then marked as late payments unknown to me at the time as their website was making me informed off the delay in the funds getting to them or them marking them as late payments.

At the time due to my job and issues with my employer not paying my expenses on time I was struggling financially so spoke to Tesco about reducing payments or freezing % to help me out. They agreed to reduce my payments.

I’ve looked on my credit report and they have in fact reported as a default of 3 missing payments and never told me. 

Can I have this investigated? And is there evidence I would need to back my claims?

also if I can’t query this. Does anyone know the likeliness of this effecting me getting a mortgage. The default was registered as 2 years ago and final payment made last year.

[Deleted User]

If full payment wasn't made, then it's correct that they are reported as missed. They could have been reported as an arrangement, but there's no practical difference.

After how many missed payments was the default registered? The best you can hope for is for it to be recorded as early as possible.

Techbe

Deleted_User said:

If full payment wasn't made, then it's correct that they are reported as missed. They could have been reported as an arrangement, but there's no practical difference.

After how many missed payments was the default registered? The best you can hope for is for it to be recorded as early as possible.

I made the full payment online within the date but then due to the payment being processed it was delayed a few days. If I’d have been alerted to this I’d have ensure i paid earlier than the deadline.

3 missed payments. Recorded the default from when I asked for a reduction but never sent anything formally to this fact either. Hard lessons learnt here clearly 

MalMonroe

The best way to pay off any credit card is by direct debit. Then there is NO argument and you can take the credit card company to task if they do it wrong. Most CC companies allow you to change the date you pay your direct debits (Tesco do, I have a card with them). There's no excuse really for a late payment. Then if you want to pay any extra, you can at any time and you will not be charged a late fee and your lateness will not be recorded on your credit reports. Sadly, they won't let you know that you have made late payments because they expect you to keep an eye on your statements. You can open your online Tesco credit card account and you can also download the app to your phone. Then you get an accurate, up to date picture of your account. I know they're up to date because I have one, why would yours not be the same?

It IS a hard lesson to learn I know, that's how I learned so I'm sorry if I'm sounding a bit harsh here. It turned out that my financial education started with a DRO a few years ago, so I was in a much worse position than you. Just keep an eye on all your statements and remember that direct debits are your friends.

If you ever are struggling financially, you can contact one of the free debt help agencies, I used StepChange, who put me on the straight and narrow and helped me to get my DRO. https://www.stepchange.org/

The fact that you say you spoke to Tesco about reducing payments or freezing % to help you out and they agreed to reduce your payments may have affected your credit reports. Reducing payments indicates that you are not able to keep up the payments you should be making. Which could affect your application for a mortgage.

The only way to really find out about that I guess would be to approach a mortgage lender to ask, or do one of those online mortgage calculations. 

Techbe

MalMonroe said:

The best way to pay off any credit card is by direct debit. Then there is NO argument and you can take the credit card company to task if they do it wrong. Most CC companies allow you to change the date you pay your direct debits (Tesco do, I have a card with them). There's no excuse really for a late payment. Then if you want to pay any extra, you can at any time and you will not be charged a late fee and your lateness will not be recorded on your credit reports. Sadly, they won't let you know that you have made late payments because they expect you to keep an eye on your statements. You can open your online Tesco credit card account and you can also download the app to your phone. Then you get an accurate, up to date picture of your account. I know they're up to date because I have one, why would yours not be the same?

It IS a hard lesson to learn I know, that's how I learned so I'm sorry if I'm sounding a bit harsh here. It turned out that my financial education started with a DRO a few years ago, so I was in a much worse position than you. Just keep an eye on all your statements and remember that direct debits are your friends.

If you ever are struggling financially, you can contact one of the free debt help agencies, I used StepChange, who put me on the straight and narrow and helped me to get my DRO. https://www.stepchange.org/

The fact that you say you spoke to Tesco about reducing payments or freezing % to help you out and they agreed to reduce your payments may have affected your credit reports. Reducing payments indicates that you are not able to keep up the payments you should be making. Which could affect your application for a mortgage.

The only way to really find out about that I guess would be to approach a mortgage lender to ask, or do one of those online mortgage calculations. 

This was 3 years ago, I was didn’t see the option to change the DD. I actually paid on time in the portal but the transaction time was a few days so they would accept as the next month. The online portal acknowledged it as on time but the system didn’t? That’s why I’ve asked if I can query it. They also never sent any formal communication to the late payments or defaults. 

At the point I couldn’t put it on a dd as I was paying my work expenses and then claiming them back but my previous employer were poor at actually paying them which at this point but in my financial difficulties hence why I asked for a freeze or reduction. After 6 months in the job the company owned me 5k in expenses and I couldn’t afford the constant catch up I was playing. 

Now left the job for a much better paying job and somewhere you don’t need to beg for them to pay for things they should of paid out right themselves. 

wiseonesomeofthetime

Just looked at the reverse of my Tesco Credit Card statements from 2017 and for the majority of the payment methods, excluding DD and Post it states:

• We recommend you allow 2 full working days for debit card payments 

• We will credit the funds to your account as soon as we receive them from your Bank.

When was your payment actually due, that you made on that 27 January? If you left it too close to the end date, then there is your error. 

The downside to not having a DD set up unfortunately.

born_again

Techbe said:

This was 3 years ago, I was didn’t see the option to change the DD. I actually paid on time in the portal but the transaction time was a few days so they would accept as the next month. The online portal acknowledged it as on time but the system didn’t? That’s why I’ve asked if I can query it. They also never sent any formal communication to the late payments or defaults. 

How did you make the payments?
As the above post if by debit card then they do take a couple of days to come through, maybe longer if it is over a weekend.

But strange as they say "as soon as we receive them from your Bank" as they take the funds, not your bank send them.

TBH. If it was 3 years ago, it's not going to have a massive impact on you. Unlike going into a arrangement due to being unable to pay.

Techbe

born_again said:

Techbe said:

This was 3 years ago, I was didn’t see the option to change the DD. I actually paid on time in the portal but the transaction time was a few days so they would accept as the next month. The online portal acknowledged it as on time but the system didn’t? That’s why I’ve asked if I can query it. They also never sent any formal communication to the late payments or defaults. 

How did you make the payments?
As the above post if by debit card then they do take a couple of days to come through, maybe longer if it is over a weekend.

But strange as they say "as soon as we receive them from your Bank" as they take the funds, not your bank send them.

TBH. If it was 3 years ago, it's not going to have a massive impact on you. Unlike going into a arrangement due to being unable to pay.

My mortgage broker has said due to this the best rate I can get is 3.4% which isn’t ideal