Egg Card charge interest on BT Fee!

anjumanji · 4 September 2006 at 2:51PM

Hi All,

First post here so please be kind if I'm repeating something that's already been covered.

I did a BT to my Egg card back in Feb and was given 0% for 9 mths on the BT and 6 mths on Purchases. 'Great' I thought, as I wasn't planning on using it for purchases. This morning when I checked the balance I saw I'd been charged a mechandise interest fee. When I called Egg up to query it, they told me that the BT fee of £50 I paid, counted as a purchase so was eligible for interest from 01/08/06.

Has anyone else had this happen, is it standard practice?

Any advice would be appreciated.

Thanks

Gordon_the_Moron · 4 September 2006 at 7:34PM

Normally the BT fee is charged at the same rate as the balance transfer itself, you'll have to read the small print of the account though it depends on the provider.

humfer · 4 September 2006 at 10:11PM

...cheeky bleeders....

Michael_Nottingham · 4 September 2006 at 11:10PM

Egg did the same to me but only for a few pence

I couldnt find anything about it in their T&Cs (either way)

I half thought about taking it through their complaints process - even if just to cost them more than they have charged me!

dealseeker · 5 September 2006 at 1:07AM

Michael_Nottingham wrote:

Egg did the same to me but only for a few pence

I couldnt find anything about it in their T&Cs (either way)

I half thought about taking it through their complaints process - even if just to cost them more than they have charged me!

Should have done.
They charged me too.
Bit of sharp practice.

mrsw · 5 September 2006 at 9:25AM

Yes, I was charged for the BT fee as well. It works out at about 12p per month.

anjumanji · 5 September 2006 at 10:33AM

Thanks All for your replies.

Can someone please explain how they work out the interest charge.

On 24/08/06 I was charged exactly 20p @1.240 per month on the £50 BT (effective from 01/08/06). I really can't understand how they work it out.

Taken from statement.
'24 Aug 2006 MERCHANDISE INTEREST AT 1.240 PER MONTH £0.20 DR'

Note they dont use % just give a figure. I don't think I'm stupid, but there's no way I can get 20p from these figures. 1.240/100 x £50 = 62p or (((1.240/100) / 31 days) x 24days) x £50 = 48p

Thanks
Angie

Paul_Herring · 5 September 2006 at 11:10AM

Are you sure you have the right dates? 20p is 10 days' worth of interest. You say the BT was effective on 1 August - is that when the £50 was applied?

anjumanji · 5 September 2006 at 12:02PM

Ok, am now totally and utterly confused.

Balance Transfer done and £50 BT Fee charged in Feb. 6 months later in Aug interest charged on BT Fee at 20p for the whole month. Was told BT fee was eligible for interest from 01/08/06.

Spoke to Egg this morning and was advised that when I make my payment each month it pays off the Balance Transfer as well as part of the BT fee. The 20p charge is for the whole month, so effectively, of the £50 BT fee only £24.80 remains outstanding. They didn't tell me this, I'm just assuming working on 20p for this month. I asked for the breakdown but they couldn't provide it.........

When I spoke to them yesterday they said that the 0% balance transfer would be paid off first then the BT Fee, so it's all pretty inconsistent.

Still no closer to working out how they apply the charges, I'm not fussed about the 20p, I just want to know how they work it out!

Angie

Herb · 6 September 2006 at 3:20PM

This turns my stomach. It's not the money that bothers me - it's the sleezy sharp practise from a company who I have dealt me amicably for many years.

I always take advantage of the 0% Anniversary Offer, but I was told by Egg in Jun 06 that they had started to charge 2.5% Balance Transfer fee for this - A shame but still a good deal on a £14000 advance. I ignored the industry standard of calling a 6 mth advance 0% - when it annualises at 5%.

What they didn't tell me is that they would charge 1.24% pm on the BT Fee! -works out at nearly £5 per month - their 0% increases further.

They will not refund arguing that it is in the T&C's - but as there is no mention of a 0% advance in the T&C's it seems very unfair that they do not clarify this charge when the transfer is done. I could safely assume that I am getting a 'special deal' separate from normal terms.

Sleazy.

Herb · 18 September 2006 at 1:27PM

as expected I have had a letter saying I should have read T&C's - But I specifically asked what the charges were as I was upset about the fee - they never mentioned charging interest on the initial fee.

Even so - they should make a point of telling customers- rather than expect me to read the T&C's.

So I have rattled off another letter -

sleazy & underhand

Egg Card charge interest on BT Fee!

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