Why do Egg STILL charge £16????

happyhosk · 10 January 2009 at 10:42PM

I am thinking of starting some claims. Can anyone let me know...

Why do Egg still charge over £12? I have current charges of £16 for overlimit. How am I likely to get on claiming?

Also, I want to claim on Natwest and LTSB cards I still use and have big balances. Are they likely to close my accounts and request repayment in full? Cannot risk it!

jamalfatty · 11 January 2009 at 3:12AM

I cant remember the exact wording, but when the OFT looked into the amount of penalty fee's, they decided that for the most part £12 was a level at which they would not take further action, but in the case of Egg, their business model was such that they had a disproportionately lower number of people who defaulted than other banks and thus the cost to them per default was higher so they were allowed to charge up to £16 without facing action.

As I said, cant remember exact wording but it was something along those lines.

daveboy · 11 January 2009 at 7:59AM

I will start a claim.

Don't go over the limit on the card and you won't get hit with the £16 charge. Easy really.

Egg have done nothing wrong.

I have one...funnily enough they've never charged me a penny.

Why do Egg STILL charge £16????

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