Tesco credit card processed direct debit on 24th Dec for a 29th Dec payment due date

[poolfan]

But having read Dublin Texas post it does seem that I have learned a costly lesson, make sure there is enough money in my account 5 days prior to the date on the credit card statement

 

[DublinTexas]

But having read Dublin Texas post it does seem that I have learned a costly lesson, make sure there is enough money in my account 5 days prior to the date on the credit card statement

Or 6-7 if that day is falling on a weekend.

I had nothing but problems with my Tesco Direct Debit so I have revoked that and since than pay via mybills.ie (usually there 2 days later) or directly via PTSB online banking (with 10 days before the due date just to be sure).

Tesco is really not a good option with their outdated processes, sending the statements from England and no internet banking.

Now what happens if they are moving to SEPA DD rather than IPSO DD it a good question, I noticed that UPC for example using SEPA DD is deducted on a Monday if the due date is Sunday, while under IPSO DD it was Friday with PTSB.

 

[Guinea pig]

I had this exact issue with AIB in relation to an ESB DD 2 years ago.

The last day we were paid from work was the 22nd of Dec, next pay date was the 31st of Dec.

My DD was due to come out on the 2nd of Dec but it was taken out on the 23rd of Dec.

The DD was for more than 1 whole weeks wages, this left me with zero money for the 6 days over Christmas.

By the time the DD was due I should have had 2 weeks wages and a child benefit payment in there, about 3 times the DD, so I felt I was well covered.

I firstly contacted AIB, (who blamed ESB) and demanded they reverse the DD, they finally did this for me over the phone but it didn't hit my account until the next weeks pay date anyway.

I was hit with a fee for a failed DD and an unauthorised overdraft.

I opened a formal complaint with both companies and got all charges removed from both accounts but no compensation for having no money over Christmas.

I cancelled my DD with ESB and

Though it is no excuse, but UPC 'send DDs for payment 7 days before the notified payment date and state that once this file is sent they cannot change the amount to be debited or the date the payment will be taken from the account'

 

[Jazzy]

Sorry guy's but you have got this payment date thing wrong. The five day period is invoked by tesco taking the payment on the 29th of the month. The actuAl 'payment date' is 5 days later, in this case on the 4th January. So, you have every right to complain!

What tesco did here was invoke a 10 day period.... I.e 24/12/13 for actual payment date of 4/1/14.

 

[Brendan Burgess]

Yes thats what it said

Tesco have asked me to get PTSB to provide evidnce that the payment was not taken on the 24th, ( it shows this date on my online banking) ,

poolfan

What is the exact wording on the statement?


I don't think that a credit card company can say Payment Date: 10 February, if their terms and conditions allow them to take the money out 5 business days earlier. In fact, I don't think that they can take the money out a day earlier either if the payment date is a bank holiday. If they can't take the money out on a bank holiday, they should revise the payment date to a working day for the bank.

Brendan

 

[Gulliver]

1 The points at issue here are not covered directly by any banking legislation or by Direct Debit rules or by the Payment Services Regulations 2009. So we are in areas covered by contract law, and banking practice.
2 Under normal banking practice, if a payment is presented for debitting on a non-business day, it will be debitted on the next business day. This has been practice since time began
3 The date for presentation of a direct debit is set by the payee (Tesco in this case). Tesco must not present it for payment on any date prior to the date which has been agreed with the payer.
4 It therefore seems that one party (Tesco or the payers bank) has made a mistake. It is impossible to determine which party made the mistake until one has sight of the instructions which Tesco presented with its bulk file to its bank.

On the question about there being funds in the account, banks are certainly allowed to insist that funds can not be drawn until a lodgement is "cleared for fate". A lodgment is cleared for fate when there is no possibility that it will bounce. This is normally considered as 5 days fopr a cheque drawn on another bank. Not all banks insist on such rules for clearance, and some bankls use different rules for different customers

 

[Jazzy]

Poolfan

Check my earlier post re 'payment date'

Also refer to the direct debit guarantee, it's the uk guarantee which tesco work by and is there to protect customers. This was provided to you at your time of application to them and can be found on the web
(I can't post the link as I have insufficient posts on this site to afford me. The privilege but do a a search under 'direct debit guarantee U.K.'

Point no 2 covers your difficulty. Tesco are to inform you if money is to be taken earlier than advised in their statement

 

[Brendan Burgess]

4 It therefore seems that one party (Tesco or the payers bank) has made a mistake. It is impossible to determine which party made the mistake until one has sight of the instructions which Tesco presented with its bulk file to its bank.

Hi Gulliver

See Jazzy's post

I had the same problem with dd on 24/12/13 and insufficient funds in my aib to meet payment.

So it does look as if it was Tesco who made the mistake?

Surely the bank would have a very limited role? The bulk file would have been set up automatically by Tescos. It's unlikely that AIB or ptsb would have any involvement with it in terms of setting the date?

 

[DMcL1971]

Poolfan,
The normal procedure for all direct debits is that a bill is issued to you by the originator (Tesco in your case). The payment date is specified by Tesco on the bill. This is a notification to you to inform you that you need to have sufficient funds in your account on that day. The originator will then request the bank to take the money from your account on that date. If the date is not a bank working day then the bank will take the payment on the next bank working day after that date. The DD originator is not allowed to specify a date to the bank which is earlier than the day of which they have notified you.

The originator chooses the date and the bank processes payment either on that date or on the next bank working date. If the DD was taken early it was because Tesco told the bank to take it early.

As above the date is decided by Tesco not the bank. Jazzy's post proves the error is with Tesco as at leas two different banks processed the payment on the 24th.

 

[poolfan]

poolfan

What is the exact wording on the statement?


I don't think that a credit card company can say Payment Date: 10 February, if their terms and conditions allow them to take the money out 5 business days earlier. In fact, I don't think that they can take the money out a day earlier either if the payment date is a bank holiday. If they can't take the money out on a bank holiday, they should revise the payment date to a working day for the bank.

Brendan

Your nominated bank account will be debited with the full balance on 29/01/2014 or soon after

 

[poolfan]

Thanks Jazzy I'll follow them up again on monday

Thankfully its a freephone number!

 

[Brendan Burgess]

Your nominated bank account will be debited with the full balance on 29/01/2014 or soon after

You can't get any clearer than that. This completely overrides any terms and conditions. Someone seeing that must ensure that their bank account is in funds on 29 Jan. They took it out early and should now sort you and all the other affected customers out.

Brendan

 

[Jiblet-run]

I have a Tesco credit card and the same happened to me.
My bank is with Ulster.
Normally I clear my balance using mybills.ie but I let the direct debit go through in December.
I observed Tesco taking the money from my account on Dec 24th which I thought was a bit cheeky as I knew the payment date was the 29/12. However I soon realised that the next business day was Monday 30th December.
I've noticed that direct debits and also standing orders, with Ulster Bank, which fall on a non business day are taken from my account from the closest business day prior. For example my rent, which is set up as a standing order by myself, was taken on Jan 18th even though the payment date is Jan 20th. But as Jan 20th is a Sunday, I guess banks policy is to take the money on the business day before rather than after.
Unfortunately OP I don't think you have a case here as from experience and what has been quoted by other posters, Tesco have T&Cs to take the money 5 days in advance - I didn't know this myself either! Still by all means complain as I have found the personnel on the Tesco Call Centre reasonably understanding and flexible - so maybe they might let this one slide.
Good luck!

 

[Jiblet-run]

Apologies I got my days wrong. Monday is the 20th. I have to say I am surprised that Ulster Bank couldn't wait till Monday 20th - the day of the S/O - to take the money from my account. They took it on Friday 17th but on my statement online its dated as Jan 20th.

I might give them a call and just query this.

 

[Time]

If it is Ulster they took it around 2am on the Saturday the 18th with a date of Jan 20th on it.

 

[Brendan Burgess]

Unfortunately OP I don't think you have a case here as from experience and what has been quoted by other posters, Tesco have T&Cs to take the money 5 days in advance - I didn't know this myself either!

I don't agree with you. The following line on the statement overrides the Tc&Cs

Your nominated bank account will be debited with the full balance on 29/01/2014 or soon after

 

[llgon]

Unfortunately OP I don't think you have a case here as from experience and what has been quoted by other posters, Tesco have T&Cs to take the money 5 days in advance - I didn't know this myself either! !

I think there is some confusion over this point. The date given for the DD to be taken i.e. 29th Dec would have been 5 days before the payment date. If not paying by DD you have a few days extra to get payments in.

I don't think Tesco should have taken your payment early though I have a Tesco CC and think this is normal practice for them.

 

[poolfan]

Just update, sent on my bank statement showing where the payment was taken out on the 24th december,

Tesco have refunded their interest charge as well as fees incurred from the bank

Thanks for all the help

 

[DMcL1971]

Just update, sent on my bank statement showing where the payment was taken out on the 24th december,

Tesco have refunded their interest charge as well as fees incurred from the bank

Thanks for all the help

Good result poolfan.