Tesco credit card late payment without knowledge
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ForeverAwake
Posts: 59 Forumite
Tesco credit card missed payment without knowledge
I’ve had a Tesco credit card for over 2 years now to build my credit history. Always made payment on time via direct debit. Last month I switched my debit amount with from fixed to the full amount. Thought this was a good step.
Yesterday, I was horrified to receive a letter from Tesco saying my account is in arrears, they sent no emails or texts beforehand. I immediately logged into my Tesco account and payed the full outstanding balance of £30.00.
I rang up and Tesco said because I changed the direct debit amount it caused my payment to not be collected for that month, which I no idea about. I should also mention I have Autism, so the small print can sometimes be confusing to me.
There is a late payment from Tesco marked on all 3 of my credit reports. I’ve raised a complaint over the phone to try get the late payment removed and they’ll be in touch within 14 days.
Is there anything I can do? Seems unfair to me and they need to review their direct debit scheme. It’s disheartening to know I’ve messed up, considering how badly I’ve been trying to build my history and now this late payment will stay for 6 years?
I’ve had a Tesco credit card for over 2 years now to build my credit history. Always made payment on time via direct debit. Last month I switched my debit amount with from fixed to the full amount. Thought this was a good step.
Yesterday, I was horrified to receive a letter from Tesco saying my account is in arrears, they sent no emails or texts beforehand. I immediately logged into my Tesco account and payed the full outstanding balance of £30.00.
I rang up and Tesco said because I changed the direct debit amount it caused my payment to not be collected for that month, which I no idea about. I should also mention I have Autism, so the small print can sometimes be confusing to me.
There is a late payment from Tesco marked on all 3 of my credit reports. I’ve raised a complaint over the phone to try get the late payment removed and they’ll be in touch within 14 days.
Is there anything I can do? Seems unfair to me and they need to review their direct debit scheme. It’s disheartening to know I’ve messed up, considering how badly I’ve been trying to build my history and now this late payment will stay for 6 years?
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Comments
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They would usually say you should make manual payments upon changing until you see the dd on a staement as going to be collected.
Something like that.
Do you not have a nice spreadsheet with a shedule of payments to make? Helps avoid things like this.
It's going to be down to goodwill. Did you not ask them to refund, they probably will if it's the first occurance.
I assume you have online billing and did not notice. I'm sure they sent emails out. If your anything like my OH everything goes into spam becuase al legitimate things that could be unsubscribed to go there because they were clicked as such rather than unsubscribing. So into the spam folder and correct it from time to time. I'm sure they sent emails. I get texts also. But obviouly for all of these they need your correct details.
Nothing wrong with asking nicely and saying you did not get X if you can confirm it is not your fault!
1 late payment means nothing and it will mean even less the further away it gets. But do ask nicely anyway, nothing to lose!0 -
They can't review their direct debit scheme, as the regulations prohibit it. They can't collect an amount that has not been advised to you.
You're relying on their goodwill, so speak nicely to them.
Worst case scenario though, one isolated late payment will have minimal impact.0 -
From my use of the Tesco direct debit payment option it does warn that the first payment may not go through or not on time, and I have had this happen to me before, so it's a good idea to keep an eye on it for the first payment.
The only thing you can really do now is make an official complaint and if that doesn't resolve it after eight weeks you can refer it to the Ombudsman.Retired at age 56 after having "light bulb moment" due to reading MSE and its forums. Have been converted to the "budget to zero" concept and use YNAB for all monthly budgeting and long term goals.0 -
Had a similar late payment charge from the Post Office credit card. The account had a £12 credit on which had been there for about 2 years as I hadn't used the card so I decided I'd start using the card for my Netflix monthly payment. I unfortunately presumed that the outstanding monthly payments would be taken by the DD I'd originally set up a few years ago but this wasn't the case as the DD was cancelled (not by me) as it hadn't been used because the card hadn't been used for two years. Long story short, after contacting the PO ( Bank of Ireland) they refunded the late payment charge. I was also on paperless billing but had received no emails concerning my account or the late payment.0
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They’ve refunded the late payment of £12, however I’m more concerned about the late payment mark on my credit history especially after it was completely unintentional and an honest mistake.0
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ForeverAwake wrote: »They’ve refunded the late payment of £12, however I’m more concerned about the late payment mark on my credit history especially after it was completely unintentional and an honest mistake.
Was it even a mistake? What you did seemed perfectly reasonable. Why should a change in the DD amount result in an effective cancellation of the arrangement followed by a reinstatement? It doesn't make sense.0 -
Because that’s the way the Direct Debit system works.0
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Thanks Johnsmith1980,
I’ve got direct debits set up to my all my bills on time, and i’ve changed the payment amount before on other cards, and I’ve never had any problems with any, only Tesco.
To be honest I might just cancel the card, Tesco have put a flaw in my credit history without good reason and without giving me a chance to correct it in time with no email, text or alerts. Just a manual letter that took 7 days to arrive after the late payment was added.0 -
Cancelling the card wouldn't aid your credit history in any way - rather, it would make it look slightly worse.
Think carefully before reacting too emotionally to what is simply a contractual issue.0 -
That is correct. The way Direct Debits operate is that any changes must be made no later than 14 days before the due date for that change to apply to the next direct debit, this isn't a decision the banks etc agreed on, it is one that was made mandatory by the financial authorities for the Direct Debit Scheme. If you made the change within 14 days of the direct debit being due then they wouldn't have been able to take it under direct debit rules. They should have advised you to make a manual payment but they didn't.ForeverAwake wrote: »I rang up and Tesco said because I changed the direct debit amount it caused my payment to not be collected for that month, which I no idea about. I should also mention I have Autism, so the small print can sometimes be confusing to me.
If they've credited you the £12 it is worth contacting them, ideally in writing, to request that they also remove the late payment marker.
If the late payment marker isn't removed then a single late payment marker on its own on your credit file won't have much, if any impact.0
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