'I'm worried about my credit score after my bank's missed payments'

25 May 2018

Moneywise helps a reader tackle a payment error

I have had a Tesco credit card for more than a year. I have a direct debit set up to pay the amount owed in full every month. In February, the payment wasn’t taken. I rang Tesco and it said the payment date had been changed and advised me not to worry and that it would be taken out in March as usual. The adviser said it was all sorted, there would be no late fee and it wouldn’t affect my credit rating.

Then the payment was not taken in March. I rang again and was reassured by the adviser that it would be taken in April. I was told not to worry as there would be no late payment fee and no effect on my credit score.

But then it wasn’t taken in April either. I rang up in tears. Again, the adviser told me it would be sorted, which I didn’t believe. So I decided to transfer the money and pay off the balance myself. I’m really worried that this has affected my credit score. What can I do?

NJ/Anglesey, Wales

I contacted Tesco Bank on your behalf to seek some reassurance that things will be put right and your credit score won’t be hit.

The bank responded promptly and positively. It said: “We apologise that NJ’s direct debit payment was stopped in error, which resulted in the payments between February and April not being collected. We have confirmed that no fees have been applied as a result, and that the customer’s credit file will not be affected. We apologise for any inconvenience this may have caused.”

“My payment wasn’t taken. I rang up in tears”

I pointed out that you suffered some distress because of the situation and asked if it could give you a gesture of goodwill by way of apology. Tesco Bank told me it has offered you £250 as compensation.

I asked you if you were happy with the outcome. You told me: “I’ve asked Tesco Bank to close my credit card account as I no longer want anything to do with the company.”

I don’t blame you. Despite calling every month, the error wasn’t dealt with, leaving you concerned about your finances. But I’m confident that your credit score won’t have been hit and hope that the compensation goes some way to easing your anger.

OUTCOME: Reader gets £250 compensation for payment error


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