Tesco pay 1 million for 6 bikes!

AnonoBoy

Every little decimal point helps I suppose.

Tesco in £1m cycles payment blunder

Britain's biggest retailer is taking legal action after mistakenly paying almost £1 million for six bicycles which should have cost less than £1,000, sources said.

Tesco is seeking restitution of the overpaid monies following the error by its finance team.

The supermarket chain should have paid Universal Cycles, a subsidiary of Sports Direct which is controlled by Newcastle United owner Mike Ashley, £984 for six Muddy Fox Suspension Bikes but paid £984,000 instead.

Universal, an Essex-based company majority-owned by Sports Direct, has paid back £863,000 but Tesco claims it is holding on to more than £121,000 in outstanding funds, sources said.

It has launched legal action at the High Court to recover the remaining money, legal costs and a further £1,783 - the sum the retailer claims it is owed in interest at 8% a year.

The error was made on August 13 and Universal was asked to repay it 15 days later. Universal then repaid some of the funds on September 29, but £121,412 is outstanding, sources said.

It is understood a meeting will be held between the two parties in a bid to resolve the dispute out of court.

A Tesco spokesman declined to comment on the ongoing case.

http://uk.news.yahoo.com/21/20091125/tuk-tesco-in-1m-cycles-payment-blunder-6323e80.html

DrumSteve

i would have told them to get on their bike.

still though... for a finance team thats some error to make.

biko

They must have though Tesco wouldn't notice.

Spore

The difference is.... Tesco's dumber

GavRedKing

If you work in finance and you cant figure out where to put a deciml place and that your after over paying by that much you should be fired on the spot for being a dumbass.

Although it might explain alot of our bank problems:pac:

fonda

Wonder how much the bikes will be selling at in stores?

about 166000 to break even

rizzee

Every little helps

jenny2hat

Lol their fault anyway.

Kipperhell

Very easy for a computer systems being used to allow accidental entry and to be missed. Errors happen but normally the company receiving such over payments are quick to point out the issue.

Some of the comments above show a complete lack of understanding of how these systems work and the flow of so much data.

It is nearly unheard of for a company to try to keep the money. It is likely the cheque was accidentally deposited and the companies debts were automatically deducted by the bank. Now the company can't pay it back. Past the cancellation period but Tesco certainly are entitled to their money back.

Mad_Max

Kipperhell wrote: »

Very easy for a computer systems being used to allow accidental entry and to be missed.

Dont blame the pooters

Kipperhell

Mad_Max wrote: »

Dont blame the pooters

I'm not as I worked on the design of such things. It was most likely data entry, Garbage in garbage out and all that.

aphex™

In an old job I had somebody overpay by 70k

Never heard if they came back for it. I would say they didn't.

AnonoBoy

aphex™ wrote: »

In an old job I had somebody overpay by 70k

Were you selling cocaine?