Tesco Bank - Credit Card Late & Over Limit Charges

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An update.
Complaint has gone into FoS, yet to be assigned a case number.
Whilst I've been waiting I contacted the company (Morrisons) where she purchased fuel.

Two replies came back, both stating that when purchasing from a Kiosk, it's an online transaction, not pre-authorised and also that you need to have sufficient funds available else the card will be declined. 

With this, I went  back to Tesco, as it made the statement they based the rejection for refund completely untrue.
I also added that a section of their own T&C's states "In certain circumstances, we'll need to suspend or restrict the use of your card. We'll only do this for a good reason, including when: (d) The transaction would take you over your limit or you are already over limit"

In less than 24hrs they responded with yet another excuse not to refund:
"After looking at the further information you provided, my decision remains unchanged. The reason for this is Tesco Bank can decline transactions that would take you over your agreed credit limit if we receive an authorisation request from the retailer. However, retailers have a floor limit and the merchant can approve a transaction that is lower than this limit without the authorisation request being sent to us. It is therefore not possible for us decline every transaction that may exceed your limit."

So they are saying that, you've tried your hardest to prove us wrong, lets try it this way; it's the Merchants issue, not theirs; despite Morrisions saying the funds must be available they deny this; you can run up a debt with Tesco Bank as they don't hold you to a credit limit.

How can a company be so underhanded and lie, cheat and steal. Not abide by their own T&C's 
Surely this contravenes some sort of code of ethics/standards?

Has anyone come across this before?

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Update from FOS.

They have sided with Tesco Bank.

Their main reasoning for this is due to "floor limit's"

 

Thee statement the FOS put is as follows:

"Regardless of who the retailer is, it’s not unusual for stores to have the aforementioned ‘floor limit’ in place. And if the store doesn’t request authorisation from Tesco for the transaction to be approved then it doesn’t have the opportunity to decline it, and once the transaction goes through Tesco has an obligation to pay that amount even if it takes the consumer over the agreed limit.

 

So based on the information that I currently have I can’t find that Tesco’s done anything wrong because it’s correctly applied the over limit charges as per the terms and condition of the credit card.

 

And while these same terms and conditions state Tesco has the ability to stop transactions and prevent consumers going over their limit, again this is only possible if the retailer requests authorisation for the transaction.

 

But there’s also no obligation on the business to stop these transactions, the terms and conditions say that it can or may stop them but don’t state that they will.

 

It’s important to remember that ultimately it’s always the consumer’s responsibility to manage their account and make sure that they stay within the agreed credit limit. It’s not the business’ responsibility to manage the consumer’s account for them and stop them from going over the limit."

 

If all merchants have floor limits then what's to say for example Currys having a floor limit of £500 and someone with a credit limit less that £500, does this mean the transaction goes through?

 

It seems like this so called floor limit is an excuse for Tesco's to make money.

[dx100uk]

yep did warn of this before.

 

let it run

they'll sell it on.