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

poolfan

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I pay the balance of my credit card in full every month

The credit card balance was due to be taken on 29th of december

The credit card company tried to take the payment on the 24th of december,

I didnt have the necessary amount in the account at the time, so the payment bounced and I have been charged interest

Do I have fall back the fact that they tried to take the payment early?
 
Where does it say that the paymente date is 29th Dec? On the November statement, I presume. They should not have tried to take it out on 24th.

Which bank was it?

Does each bank have the same payment date for all its customers? If so, others may have been affected by this?

If you paid the balance in full quickly, they will usually waive the interest if you ask them.
 
The 29th was a Sunday, so the money would have been taken on the last business day before that, however due to the "bank holidays" over Christmas the last bank working day before Sunday 29th was Tuesday 24th because banks did not open on 25/26/27.

So you bank took the money on the correct day even if that is just another example how funny the Irish system is.
 
Yeah credit card company ( tesco) said they tried to take payment on 29th

It looks like the issue is on the bank side due to the christmas

Is it just the Irish system that is like this or all over europe
 
Poolfan,

For the last ten years I have been in charge of submitting DD files to the bank for the company I worked for.

If I were you I would formally complain to Tesco. I don't believe that what they are telling you is the truth.

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.

I would complain to Tesco and report them to IPSO.
 
The person you spoke to in Tesco is just going to say they tried to take the money on the 29th because that is what is printed on the bill. They have no idea what date the IT department were instructed to put on the file that was actually sent to the bank.
 
In all the years I processed DD's I often saw the money being taken from a customers account a few days after the date we had specified. This was due to a bank being a bit slow or having internal problems. But I never once saw a DD being processed earlier than the date specified even on bank holidays.
 
The 29th was a Sunday, so the money would have been taken on the last business day before that, however due to the "bank holidays" over Christmas the last bank working day before Sunday 29th was Tuesday 24th because banks did not open on 25/26/27.

So you bank took the money on the correct day even if that is just another example how funny the Irish system is.

Hi DT

I had wondered about this but I fogot that Friday 27th was a Bank Holiday also.

I presume that the general rule, is that they take the money out on the first business day after a bank holiday? This is the rule in the UK

[broken link removed]

If the payment due date falls at a weekend or on a bank holiday the organisation is obliged to debit your account just after the due date, not before, unless they notify you in advance of a change of date.

Its tesco credit card and ptsb

I presume that means your current account is with ptsb, who have no role in this matter.
 
It is a common enough occurrence.

DD files are sent to the bank a few days before the date specified. This is entirely normal.

Banks have a fixed number of processing days each week. Items such as automated credits, DD, and SO are processed in batches usually in the very small hours of the morning. Most banks run batches Tuesday to Saturday. So if a DD is due on a Monday or a Tuesday following a bank holiday it is always taken on the previous Saturday. It will appear on your statement dated for the Monday. Same with money due into your account on a Monday, it will be there on the Saturday available to be used.

In the instant case the DD date was the 29th of December. The DD file would be with the paying bank well before the 23rd of December. What happened here is the DD file was processed on the 24th as it was the last batch processing date before the 29th. There were no batches processed in the morning of the 29th as the banks were closed for the previous few days. In the case of the OP it would still be on the statement as processed on the 29th.

Also most banks now say it is a term and condition of paying DDs that the money must be cleared at the close of business the day before the DD is due. The OP failed to do this. I fail to see any grounds for complaint here.
 
Hi Time

Very interesting.

Even if they are technically within their rules, I think it's very shoddy.

They knew when they sent out the November statement that they would be taking the money on 24th and not the 29th. They should have alerted customers to this.

Does anyone else have a Tesco credit card with the same payment date?
 
OK, Tesco have a right to claim it 5 working days before the payment date according to this.

Payment Method 1. Direct Debit* There are 2 choices:
  • Minimum payment - claimed on your payment date
  • Full payment - claimed 5 working days earlier than your payment date


I pay my AIB Visa card in full by direct debit, and I have never tried to do anything other than make sure the money was there on the actual date. There is no mention of this 5 days on the AIB Terms and Conditions





Brendan
 
I had the same problem with dd on 24/12/13 and insufficient funds in my aib to meet payment. Aib honoured the payment but that left me with no money between the 24/12/13 and 4/1/14 so great Xmas for us!!! I had a negative balance on my account for this period.

Anyway on the 24/12/13 I contacted both aib and tesco and f€();d both of them out of it. Solved no probs but at least I released some energy.

Aib put all blame on tesco. So on the 27/12 and for the following three days I contacted tesco. I invoked the direct debit guarantee and they sent the full amount debited back to my a/c. Problem was with Xmas period and irish banking hours it was the 4/1/14 before I received this. I then paid my credit card on this new date by debit card. Received bill yesterday with no interest charges.

I have opened a complaint with tesco as their bill stated that the money would not be debited until the 29/12/13 OR NEXT WORKING DAY THEREAFTER. They have undertaken to meet my bank charges with aib for having insufficient funds and I have also requested compensation for the difficult Xmas I had as a result. The complaint has to be made in writing. It has also been copied to the financial regulator. I have cancelled my dd to tesco as a result.

Word of warning.... Tesco call centre do not appear to have knowledge of their irish office which has a complaints section and will request you to write to them in glascow.
 
I have found out to my cost that simply lodging the money on the due date was not good enough. I have been hit with fees because the DD was processed in the wee small hours before I could get to the bank. The bank told me to have the money in before the COB the day before to avoid such problems.
 
I have opened a complaint with tesco as their bill stated that the money would not be debited until the 29/12/13 OR NEXT WORKING DAY THEREAFTER.

Hi poolfan

Did your card statement say this?

Brendan
 
I pay my AIB Visa card in full by direct debit, and I have never tried to do anything other than make sure the money was there on the actual date. There is no mention of this 5 days on the AIB Terms and Conditions
Brendan
Today 06:25 PM

My situation is exactly as Brendan states above.

I have Mortgages also with AIB and the DD never comes out of my account until the Monday after where the due date falls on Sunday.
 
Are you sure it is actually the Monday? I bet it is actually gone around 5am on the Saturday.
 
In my opinion Poolfan has unfortunately no reason to complain as Tesco clearly points out that it takes full amounts 5 working days earlier than the actual payment date in the T&C.

As to a DD that is supposed to be taken out on Sunday, I know that my bank (PTSB) is always taken that amount on Friday from the account and my DD's that were due on 29/12 also were taken on the 24/12.

Similar to Time my understanding is that I need to have funds in the account the business day before the the DD is due, I can't find the notification that PTSB send about that a while ago.

For Tesco I really can only recommend to use mybills.ie for payments, its the quick and easy.
 
Hi poolfan

Did your card statement say this?

Brendan

The Tesco credit card statements say the same as their website.

Next Business day only applies to part-payments and not full payments.

If Tesco are taking the money 5 days in advance, which is completely unnecessary in a SEPA next day payment world, then they should change the payment date back 5 days to make the process clearer for the consumer.
 
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