We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
More Egg Credit Card Lunacy
muffle_2
Posts: 98 Forumite
in Credit cards
Egg have changed their terms and conditions. The following changes stick out to me to be completely unreasonable:
Condition 4.5 has been added to provide that where interest is payable, a minimum amount of 50p will be charged, even where the interest amount is calculated to be less than 50p.
A stealth interest rate rise there.
In Condition 10.5, where you have both an Egg credit card and an Egg Loan, and you are in arrears with your payments, we may choose to allocate any payment you do make to the product with the highest interest rate. If both products charge the same rate, we may choose how to allocate the payment.
The above could result in showing a missed payment on your credit report. So if for example you make your full loan payment and pay the minimum payment on your card, they could simply decide to allocate your loan payment to the credit card or vise versa.
Condition 4.5 has been added to provide that where interest is payable, a minimum amount of 50p will be charged, even where the interest amount is calculated to be less than 50p.
A stealth interest rate rise there.
In Condition 10.5, where you have both an Egg credit card and an Egg Loan, and you are in arrears with your payments, we may choose to allocate any payment you do make to the product with the highest interest rate. If both products charge the same rate, we may choose how to allocate the payment.
The above could result in showing a missed payment on your credit report. So if for example you make your full loan payment and pay the minimum payment on your card, they could simply decide to allocate your loan payment to the credit card or vise versa.
0
Comments
-
But if you're in arrears with your payments, you're going to get a missed payment on your credit file! If you maintain your account correctly, nothing to worry about.0
-
muffle wrote:Egg have changed their terms and conditions. The following changes stick out to me to be completely unreasonable:
Condition 4.5 has been added to provide that where interest is payable, a minimum amount of 50p will be charged, even where the interest amount is calculated to be less than 50p.
This is creeping into the T&Cs of other cards too.0 -
I wonder if the interest credited on Egg money is treated in this way... Nope.muffle wrote:Egg have changed their terms and conditions. The following changes stick out to me to be completely unreasonable:
Condition 4.5 has been added to provide that where interest is payable, a minimum amount of 50p will be charged, even where the interest amount is calculated to be less than 50p.
A stealth interest rate rise there.
To be fair, if the interest on your debt is less than 50p, you really should be able to afford to pay the card off instead and have 0p interest.
As RJL pointed out, if you're in so much trouble that you're in arrears, then something's going onto your credit report regardless.In Condition 10.5, where you have both an Egg credit card and an Egg Loan, and you are in arrears with your payments, we may choose to allocate any payment you do make to the product with the highest interest rate. If both products charge the same rate, we may choose how to allocate the payment.
The above could result in showing a missed payment on your credit report. So if for example you make your full loan payment and pay the minimum payment on your card, they could simply decide to allocate your loan payment to the credit card or vise versa.
The thing I personally found more objectionable was this from http://new.egg.com/visitor/0,,3_89413--View_1964,00.html
Get ready for an onslaught of junk mail/spam email from Prudential for loans, pensions and other crap.Egg wrote:We're also making some changes to Condition 8.1 (the addition of the definition of "Group") and to 23.1, 23.3, and 23.5 from 1 September 2006. These are as a result of Egg becoming fully part of the Prudential group of companies which means that we will now be sharing your personal information with them.Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
Egg have changed their terms and conditions. The following changes stick out to me to be completely unreasonable:
Condition 4.5 has been added to provide that where interest is payable, a minimum amount of 50p will be charged, even where the interest amount is calculated to be less than 50p.
A stealth interest rate rise there.
Too true - and quite a whopper of an increase. This makes me mad - it's such shameless money grabbing from people who aren't likely to know what's going on...
I got so mad I posted a blog piece about it:
http://blog.zopa.com/archives/2006/07/25/bad-egg/
I can't believe I used to work for them - thankfully I got out before they turned over the dark side...0 -
They are going to make lots of money by overcharging the odd bits less than 50p, especially with overhanging interest when people are paying their cards off. I think this should be illegal. It is virtually stealing.
All credit card companies need to be more open/clearer about interest charges.Posts are not advice and must not be relied upon.0 -
richardw wrote:They are going to make lots of money by overcharging the odd bits less than 50p, especially with overhanging interest when people are paying their cards off. I think this should be illegal. It is virtually stealing.
All credit card companies need to be more open/clearer about interest charges.
Twaddle. It would be stealing if they didn't tell you about it. How more clear would you like it than having it written in the T&Cs? Do you not read them or something!0 -
May not be stealing but anyone want to hazard a guess that it doesn't show up in the standards rules for apr calculation...I think....0
-
Can we get some realism here about this minimum 50p thing.
In order to have your interest rounded up to 50p - you'd have to be paying 49p in interest or less.
An Egg card has a monthly rate of 1.240% - so ... on a simple cacluation ...
0.49 / 0.0124 = £39.
E.g. you'd have to carry over a balance of £39 or less to be affected.
If you are carrying over that balance - I think you have more to worry about than whether your interest is 49p or 50p (like why on earth you can't afford £39 to pay off the card).
M.0 -
MPH80 - Yes I agree, but it's the principle of the thing. If they can charge a minimum of 50p, why not £1, or £5....at what point does it start to show up in the APR calc? As michaels points out - this 50p minimum doesn't.
It looks to me like Egg (and others?) have found a sneaky way to get more interest without increasing the headline APR - and that's a slippery slope.0 -
richardw wrote:It is virtually stealing.
is what I wrote, not stealing. Can't you read Stonk? Don't write about what is not written.
Rounding up charges is wrong. If the overhanging interst is 23p, then it is 23p that is due, not 50p, same with 51p, 51p is 51p.Posts are not advice and must not be relied upon.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.9K Banking & Borrowing
- 254.6K Reduce Debt & Boost Income
- 455.6K Spending & Discounts
- 247.7K Work, Benefits & Business
- 604.7K Mortgages, Homes & Bills
- 178.7K Life & Family
- 262.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards