Notice of Variation (March 2008)
The Notice of Variation is used to communicate changes we are making to the terms and conditions of your credit card. The insert you will have received shows you the amended text as well as a summary of why we have made the change.
The Changes to the T&C's
Key information 3(A)
We have amended the wording in relation to the overlimit fee to clarify when it is charged. An overlimit fee is charged if the account is overlimit at any time during a statement period.
Q. Why have you changed the wording?
A. We constantly review our literature to ensure that it is as clear as possible. We charge this fee should you go over your limit at any point in the month.
Q. How much is the fee?
A. The fee has not changed and remains £12 for going overlimit.
Q. Why do you allow customers to exceed the limit of their credit card account?
A. There are several reasons why a customer may exceed their limit.
Depending on a merchant's floor limit i.e. the level at which merchant seeks authorisation for a purchase; a customer may make a purchase that takes them over the Card limit, miss a payment causing the interest payment and or fee to take them over their limit.
We have to balance responsible lending with flexibility for our customers. Where a transaction would take a customer over their limit, we use our discretion to decide whether to allow the customer that facility.
Q. Can this be reversed if it was a bank error? How?
A. If an over limit fee is applied to your account in bank error, the fee will be refunded, and any interest from the additional amount will be adjusted.
General Condition 8(A)
Q What exactly do you mean “our credit assessment of you”?
A. Our credit assessment of you will be based on one of 3 things at present - credit reference agency information (e.g., defaults), the performance of your other RBSG credit facilities (e.g. credit cards, personal loans, overdrafts and mortgages) or the performance of the credit card account.
Q What would prompt you to reassess my credit position?
A. We review all customers using automated triggers (e.g. if certain events take place such as a missed payment or excess on a credit limit / agreed facility) to identify potential deterioration. We do likewise to offer credit limit increases. We would also review the credit position if the customer asked for more credit.
Q What might happen to a customer as a result of your credit assessment of them changing?
A. An increase or decrease in their credit limit. Customer’s circumstances change and the Bank’s aim is to offer flexible lending but ensure it is in-line with a customer’s affordability.
General Condition 10(B)
Q. Why have you changed this?
A. Our customers value the different channels to change address and we have acknowledged that writing is not always the most convenient means of doing so. We are always looking at ways to give customers more flexibility towards managing their accounts.
Please note, you must have your card present with you if changing address via the telephone.
General Condition 11
Q. What has actually changed here - not clearly discernible from the text?
A. They have been re-numbered accordingly, as previously bullets were removed, but the ordering of the letters was not amended.
General Conditions - Tariff of Charges Changes
Q. Why are you increasing the cash advance fee?
A. We regularly review our pricing to ensure it is appropriate and in line with the market.
Q. How can you justify this increase?
A. Cash advances are higher risk transactions and have been repriced to reflect this. The change moves us in line with the credit card market (Capital One, Abbey National, MBNA, HBOS, Virgin, Egg, RBS and Natwest all charge 3%, £3min)
Q. When did you last increase it?
A. September 2006.
Payment Protection Insurance
Q. What Payment Protection Insurance has actually changed?
A. The exclusion that has been removed is as follows: Your wilful or deliberate acts during the period of cover, including suicide within 12 months of the commencement date.
Additionally the repayment wording has been updated to reflect that payments will occur for a maximum of 12 months in order to clear down any outstanding balance
eStatement Customers
Q. Why have you sent me a statement when I opted to receive statements online?
A. We are making some changes to the terms and conditions relating to your Tesco Credit Card. The detail of these changes has been documented in a special insert enclosed with your statement; to ensure you received this we have given you a paper statement as well as your usual eStatement.
Q. Why can't you send me this information online or via email?
A. We strive to provide the best service to our customers but unfortunately in this occurrence system limitation has meant that we cannot provide a non-paper version of this information. We are looking in to ways to overcome this restriction for future communications of the same nature.
Q. Will I always get paper statements from now on?
A. No. Occasionally, when we send out a Notice of Variation with a copy of your Terms and Conditions, we may be required to provide this in paper format.You will continue to receive eStatements as per usual, however in March you will have received a paper based version as well.
