Discussion:
Tesco & Mastercard scams - beware!
(too old to reply)
Clive
2009-03-01 14:45:06 UTC
Permalink
Customers of Tesco Personal Finance / Mastercard be aware of a new scam
being operated. This is an example of what is happening and how they are
deliberately putting information on credit records that is false.

Take for example a Mastercard issued by Tesco with a £5000 limit per month.
The Billing period runs from 10th to the 10th of the following month. If
you were to make transactions between those dates of say £4000 and the Bill
sent through the post shows this, you would think you were below the monthly
credit limit. You would be ONLY if you did not spend anything from the 10th
of the month until the direct debit payment had cleared in a few days after
the statement was sent.

If you spent the £4000 between 10th January and 10th February, then spent
£2000 on 15th January - Tesco would try it on with a £12 charge by claiming
you had gone over your monthly limit. This is wrong because Tesco state
clearly (tape recorded) that they define a "month" as the dates within the
Billing Period. So they class their "month" as in this example from 10th
January to 10th February but for adding charges they class a "month" as a
calendar month.

Very very misleading ! If you have been misled like this give Tesco a
call, also email the press office at Mastercard to complain and you will
have the £12 refunded.

The next scam operated by Tesco was concerning collection of the unlawful
charge. If they said you had exceeded your limit in January, they would put
the charge on the Bill in February, then send a letter asking for payment
and warning about 14% interest charges. You would think it is OK to leave
it until the direct debit is taken for the February Bill it was on. WRONG,
they say because you didn't pay it within so many weeks of the date the
overspending was noticed in January it would attract interest.

After reading the longwinded terms and conditions Tesco are wrong on both
counts and will refund the fee, but you need to be polite on the phone,
don't shout, just ask for what they class as a month and explain each Bill
with the start and end date. Mastercard should be ashamed of allowing Tesco
to run such a scam to deliberately mislead customers and try it on with
unlawful charges.
Andy Pandy
2009-03-04 22:55:05 UTC
Permalink
Post by Clive
Customers of Tesco Personal Finance / Mastercard be aware of a new scam
being operated. This is an example of what is happening and how they are
deliberately putting information on credit records that is false.
Take for example a Mastercard issued by Tesco with a £5000 limit per month.
Per month?? Since when do credit cards have a limit "per month"??

Credit cards invariably have a *credit limit*. That's the maximum which can be
outstanding at any time, and includes unpaid previous statements, and is not
*monthly*. This is standard practice.
Post by Clive
The Billing period runs from 10th to the 10th of the following month. If
you were to make transactions between those dates of say £4000 and the Bill
sent through the post shows this, you would think you were below the monthly
credit limit.
Unless the Tesco credit card is very unusual it won't have a "monthly" limit,
it'll have a TOTAL credit limit.

In fact, a quick check on the Tesco web site confirms that Tesco follow standard
practice:

http://www.tescofinance.com/personal/finance/finance/creditcards/glossary.html

a.. "Credit limit - the most you are allowed to owe on your account at any time
"
Post by Clive
You would be ONLY if you did not spend anything from the 10th
of the month until the direct debit payment had cleared in a few days after
the statement was sent.
If you spent the £4000 between 10th January and 10th February, then spent
£2000 on 15th January - Tesco would try it on with a £12 charge by claiming
you had gone over your monthly limit.
What monthly limit? The limit isn't monthly.
Post by Clive
This is wrong because Tesco state
clearly (tape recorded) that they define a "month" as the dates within the
Billing Period. So they class their "month" as in this example from 10th
January to 10th February but for adding charges they class a "month" as a
calendar month.
Irrelevant - the *credit limit* makes no mention of month.
Post by Clive
Very very misleading ! If you have been misled like this give Tesco a
call, also email the press office at Mastercard to complain and you will
have the £12 refunded.
It would have been a goodwill gesture because either they CBA arguing with you
over £12 and they want to keep your custom, or the call centre droid was too
thick to understand their own T&C's.
Post by Clive
The next scam operated by Tesco was concerning collection of the unlawful
charge. If they said you had exceeded your limit in January, they would put
the charge on the Bill in February, then send a letter asking for payment
and warning about 14% interest charges. You would think it is OK to leave
it until the direct debit is taken for the February Bill it was on.
Why would you think that?
Post by Clive
WRONG,
they say because you didn't pay it within so many weeks of the date the
overspending was noticed in January it would attract interest.
After reading the longwinded terms and conditions Tesco are wrong on both
counts and will refund the fee, but you need to be polite on the phone,
don't shout, just ask for what they class as a month and explain each Bill
with the start and end date. Mastercard should be ashamed of allowing Tesco
to run such a scam to deliberately mislead customers and try it on with
unlawful charges.
Tesco should be ashamed to have call centre staff who don't seem to understand
their own T&C's.

--
Andy

Loading...