Tesco shoppers hit by credit card bill shock

TESCO BANK credit card customers are being stung by shock interest charges on their Christmas shopping.

In October, the bank told customers they’d receive an interest payment holiday until March on purchases made in Tesco stores between November 1 and December 31, 2016.

Usually the only way of avoiding interest is to clear your balance each month; other spending would still accrue interest. Customers believed that, if they repaid these purchases in full at the end of the month, leaving only Tesco transactions on the card, they’d still benefit from the special offer.

However, they have since found that Tesco has charged them interest regardless.

The bank says it made it clear it charges interest daily on outstanding balances.

A spokesman for MoneySavingExpert says that customers who complain are being refunded.