Tesco Bank credit card customers have been hit with unexpected interest charges on their Christmas shopping – contrary to information given about the length of an interest payment holiday in October 2016.
In October, the bank informed customers that they would be in receipt of a payment holiday until March 2017, on all purchases carried out in Tesco stores, from the 1st November up to 31st December 2016.
The normal course of action for credit card users is to clear your balance if interest payments are to be avoided.
Although Tesco said customers would enjoy an interest payment holiday on Christmas purchases (within guidelines) up to March 2017, customers were still charged.
Customers were under the impression that if they made repayments on purchases not covered under the interest offer terms and conditions – leaving remaining Tesco transactions on the card – that the interest payment holiday offer would still be applicable.
However, it has since emerged that the unexpected costs are because the bank clearly stated that it charges interest on a daily basis – on the entirety of outstanding balances.
Helen Saxon, MoneySavingExpert.com’s chief product analyst, explains: “Tesco Bank hasn’t broken any terms and conditions here, but the fact remains that a lot of people have been caught out by its 0 per cent offer.”
“We’ve heard it’s refunding people who call to complain about being charged interest when they’ve paid off all their non-0 per cent purchases, which does suggest an acknowledgement from Tesco Bank that this offer could have been better explained.”
“If you’ve been tripped up by this, it’s worth a call to Tesco Bank to ask for your interest back.”