Tesco Bank - Credit Card Late & Over Limit Charges

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They are telling her she doesn't qualify for any payment freeze at all (FCA or Covid)
She's asked them to put that in writing  

[AndyOrch]

Given that she is 3 months arrears Its hardly surprising.....the agreement is beyond repair unless all arrears are paid in full and the default rectified.I would imagine they are close to terminating the agreement.

[slick132]

Hi Ads,

 

Here's an updated template so YF can try to reclaim the charges, or have them withdrawn to reduce the o/s balance - https://www.consumeractiongroup.co.uk/topic/422823-legal-reclaiming-credit-card-charges-informal-request/

 

 

Because the £12 charges are relatively recent and no higher than the limit set by the OFT in 2006, Andyorch has warned that the bank is not oblidged to refund or withdraw the charges.

 

Having said that, YF has nothing to lose in trying to get her balance reduced by reclaiming..

 

I suggest you use the letter to reclaim the full amount of each charge plus 8% interest as per the spreadsheet. When you open the spreadsheet again, it will auto-update the interest so print it out the day you date the letter and keep a copy of the printed spready with your copy reclaim letter.

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Thank you.

 

From looking at her statements she's paid the minimum requested payments (late by 24-48hrs) but then the Late Payment send her overlimit and then incurs an overlimit charge.

 

There are occasions where she's purchased fuel (not via the pump) and the transaction has been accepted despite not enough funds being available. (Her debit card is with Halifax and she says she just pulls out the blue one).

 

Thanks again I'll get her to send this off weekend

[dx100uk]

the penalties are still unlawful though. and those are now the remaining balance

 

a credit or debit card with £1 or more on it on any petrol pump will allow more than that £1 to be spent .

 

 

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She said she'd never used pay at the pump.

 

Only ever gone into the petrol station as she's always bought some other items (milk, bread) 

 

Would that be the same?

[dx100uk]

should be no 

thsts interesting.

 

if the limit balance was not there the transaction should not go thru.

 

dx

 

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Hi all,

Can I quickly check something with yourselves.
I've finally been able to pick up all the correspondence she's received and I have a question.

There is no "Notification Of Default Fees Charged" letters. am I right in saying that where a Default Charge/Fee/Penalty has been applied they should also provide a notification of the this and not just have it on the statement?
 

correction..
There is a note on the end of the statement that states:

"Notice of Default Sums - This notice is being given to you under the Consumer Credit Act 1974 because you have incurred one or more default charges ("Default Sums"). The default charges are displayed within the transnational section above. This Notice does not take into account default sums, which we have already told you about in another Default Sum Notice, whether or not those sums remain unpaid"

Is this enough or should it be separate notice?

[AndyOrch]

http://www.legislation.gov.uk/ukpga/2006/14/section/12

 

http://www.legislation.gov.uk/ukpga/2006/14/section/11

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Damn.

I always thought that they had to provide with Notice of default prior to a charge being applied and not apply the charge and we will also include it on the statement.

 

Another clutching at straws question, seeing as the blurb in the statement does not mention "notice under section 86" and just quotes "under the Consumer Credit Act 1974", be another reason to dismiss charges? 

[AndyOrch]

It should be provided as a separate notice...not on the statement.

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6 minutes ago, Andyorch said:

It should be provided as a separate notice...not on the statement.

Oh cool so 3pts to me

It does state on http://www.legislation.gov.uk/ukpga/2006/14/section/12 the following:
(3)The notice under this section may be incorporated in a statement or other notice which the creditor or owner gives the debtor or hirer in relation to the agreement by virtue of another provision of this Act.

so just to be sure that statement does not apply

[AndyOrch]

Providing the statement (notice) is served within 6 months of the default charge/s....so technically yes  I suppose they could serve notice that way providing that said statements are given promptly ...monthly bi monthly etc.

 

I really wouldn't be digging too deep into the legislation...keep your claim to a general holistic claim

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Reply to complain has been received via email:

 

hanks for your patience while I've looked into your complaint. Based on what I've found, I think we've acted fairly, so I won't be upholding your complaint. I've explained why below.

 

Your Complaint

You let us know you're unhappy with the Late Payment Fees (LPF) and Over Limit Fees (OLF) applied to the account of xxxxxx account since July 2018 and want these refunded. When you spoke to us on 30 June, you were refused the email address for Customer Relations and no complaint was raised for you. The account wasn't frozen as discussed and you want to know why xxxxx could buy fuel at a kiosk taking you over your agreed credit limit.

 

My Findings

I've reviewed xxxxxx account and listened to your call of 30 June to get a better understanding of what's happened.

When you spoke with my colleague, you requested an email address to make a claim against the LPF and OLF applied to xxxxx account. Whilst we appreciate the email address for Customer Relations is available online, my colleague followed the correct process.
A business decision was made that email address' for business areas such as Customer Relations aren't provided over the phone.

Towards the end of the call my colleague offered to raise a complaint on your behalf, this was rejected by yourself as you confirmed you would use 'Resolver' to contact us, as you wanted a communication chain.

During the call, my colleague explained the Payment Break to you. It was explained that he could apply a 3-month break to your account and backdate this and refund the last 2 months of fees.
At this point you confirmed this could affect your claim, so no further action was taken.  

 

Information regarding charges, fees and interest are detailed within the Terms & Conditions (T&C's) which you agreed to at account opening.
As a customer when XXXXXX entered into the Credit Card agreement, they agreed to these terms, which also include making at least the minimum payment to the account and remaining within the agreed Credit Limit to prevent any fees being applied to your account.

When payments have been late or the agreed credit limit has been exceeded, we notify in writing with Late Payment letters and Default letters being issued to xxxxx home address. As a customer it is xxxxxx responsibility to ensure that they manage the account correctly and within the T&C's.

We consider our over limit, returned and late payment charges of £12 to be fair and transparent as they are outlined within the terms and conditions of the credit card. 

A detailed independent analysis of the costs associated with our fees shows that this is fair and justified. Therefore, I will not be able to refund these to xxxxx.

 

When buying fuel at a kiosk this is an offline transaction and the merchant doesn't come to the bank for approval. Prior to the kiosk processing the fuel a pre-authorisation is done it checks it's an active card with an active credit facility before completing the transaction.  It's the customers responsibility to know there is enough funds to clear the amount the spent, as it is pre-approved, we need to accept it.  

My Decision

Based on this, I won't be upholding your complaint as I'm unable to evidence any error made by Tesco Bank. 

You have the right to refer your complaint to the Financial Ombudsman Service, free of charge - but you must do so within six months of the date of this letter."
 

Things I note -
"At this point you confirmed this could affect your claim, so no further action was taken."  I said I would like to put the complaint in myself -- If I had already mentioned financial impacts surely they should of applied holds / and refunds?
Paying for fuel, they have stated KISOK and not pay at pump. Kiosks should be treated the same as when purchasing items at a shop surely?

I guess the next step is the long waiting game of the FOS?
Any tips, guidance to ensure I can get this refunded and closed for her?

[dx100uk]

the fca did not ever say that £12 was an acceptable level for any penalty charge.

something being in T&C's does not make it legally enforceable , just like PPI and the previous round of bank charges reclaiming in the 2000's that created CAG.

 

 

 

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Do I need to reply to them or is it now FOS.

 

The kiosk bit is a bit of lie.

Ive gone to a garage kiosk and purchased fuel before and tried to pay with the wrong card and the card gets rejected if there is insufficient funds available.

[dx100uk]

the fos rarely side with consumers upon charges reclaiming.

 

dx

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Best tell her the bad news that she's going to have to pay it.

 

Cheers for your help

[dx100uk]

why?

 

dx

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You said FOS don't rarely side with the consumer.

Then again it costs nothing to try.

[dx100uk]

so what if they don't agree?

 

can't see why you are recommending paying a debt solely made of penalty charges??

the OC won't ever goto court, they never do...

 

they'll default the debt (if it's not already subject to a defaulted date noted on  her credit file?) and sell it on as a lemon debt to a debt buying DCA

and when that happens there still exists a serious dispute ...

 

and a dca would be really stupid to goto court re the above.

9/10 they drop these debts like a hot coal.

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Hi ya.
Little update
She received a default notice for £302. (C/Limit of £250)
In arrears total £83.00

She rang them as they were supposed to put her on the COVID payment break freeze thing.
They said a freeze was applied 6th July but as it's gone past the 90 days, collection letters commence - she pointed out that 90days would mean Oct.

 

Bit of a track back by the agent who said the account was placed on a temp hold whilst complaint was investigated and not the covid freeze (despite originally stating that she was struggling back in June)

Now this is the part I'm having trouble understanding.

The agent has told her to prevent the account being Terminated & Defaulted she would need to do an arrangement.
For some stupid reason she's told them she can afford £25 pcm.

They have told her that based on that they will freeze the account at 0% interest and not accrue any charges.

Now for the bit i dont understand

- they have the arrangement would be £25 pcm, then she would have to pay £110 lump sum to clear the arrears.

She did not understand this and neither do I

- the agent stated that the system generates the minimum payment (£25) due and they can not do anything about that, so the £110 will be the arrears of the minimum payment due.

Surely if she accepts this £25pcm for 4mths would bring the balance below the £250 credit limit - so no arrears outstanding. - the person is insistent that their calculator is right.

She has asked for it to be put in writing before she accepts

-- she said she told the agent multiple times that she did not understand, and that the agent was insistent of accepting. in the end the agent agreed to place the account on hold for 20days so the information could be sent through.

Am I missing something on the lumpsum / arrears

- if a repay plan is in place at £25 and is paid monthly, then how can arrears increase?
That would mean that she would need to pay £50+ pcm to clear arrears?

Once this letter comes through I'm going to DSar them for the telephone call, as Tesco state all calls are recorded as she should not be pushed into accepting something she didnt understand.


 

[dx100uk]

SAR them anyway.

 

just remember - it's a toxic debt made solely of unlawful penalty charges so she shouldn't pay anything anyway...

 

about time you told her to STOP using the phone.

writing ONLY put the phone down.

 

dx

 

 

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DSAR Sent.

She received details of this payment arrangement and it doesn't still seem right.
OverDue amount: £87
Overlimit amount: £55

Proposed plan = £25.00 for the next 4 months. After the 4 months the account will be in Arrears by £110 which would require a lump sum?

Current Credit Limit = £250
Current Balance = £305

Now, my maths tell me that £25 x 4 = £100, deduct that from the Balance and then that leaves £205, £45 below the Credit Limit.
So why would a lump sum be required? This is what I'm not understanding.

[dx100uk]

 

dont worry about it.

 

dx