I have been with Tesco Bank for quite a few years. During that time I have had a few of there cards with their 0% deals.
Today I open an envelope and find a letter with a default sum notice for an overlimit.
I called Tesco for clarification. It turns out this particular account has been closed for a year and a half and when it was closed it had a positive balance. A few months after it was closed I noticed the positive balance and called Tesco bank to have the positive balance moved to my current account (Amazing they never automatically do this, but keep your money!). Anyway the positive balance was moved to my current account. My balance was 0 and the I was assured the account was closed.
The lady explained to me on the phone (after investigating) that after the positive balance was removed the system automatically applied a small charge (i dont know why) and has been generating £12 charges every month for the past year. I logged into my online banking and can see the £12 DD’s coming out every month.
I have also checked my credit file and can see the transaction on my credit file but it does not appear to have any negative effect on my credit file (maybe I am wrong ?)
I explained that I was not happy with what has happened and Tesco have agreed to refund all the charges and correct my credit file to remove this information. This is not enough, so I have asked for compensation.
They have offered £50 in compensation.
I have escalated my complaint and advised I would be happy to accept a 12 month interest free period on my other Tesco card (interest free period has just expired) so it has been escalated to the relevant department to be investigated.
I am angry as this was their fault and they have been taking my money from my account wrongfully.
Could I make a complaint to the financial ombudsman or somewhere else ?
Should I just accept the £50 and let them refund the wrongfully applied charges and correct my credit file ?
If I had made a mistake they would have penalised my alot more than £50, so I find this a joke.