Egg Money Terms & Conditions Changes

WHAT I'VE WRITTEN BELOW ABOUT BEING CHARGED 50p EVEN IF YOU PAY THE BALANCE IN FULL ISN'T TRUE - AND WAS DUE TO A MISUNDERSTANDING OF THE TERMS & CONDITIONS (SORRY) - I'VE LEFT THE POST AS IT WAS FOR REFERENCE.

About half an hour ago I received an e-mail from Egg saying that my Egg Money Terms & Conditions had changed giving a summary of the changes, and thought other people might be interested. I read these changes, but being a bit bored thought I'd have a read of the full text of the new conditions, which is when I was surprised to discover a new monthly fee, where if interest liable is less than 50p a fee is charged to bring fee+interest up to 50p.

This can be viewed at:

http://new.egg.com/visitor/0,,3_107468--View_2282,00.html

and the clause of interest is 7.2 (reproduced below):

7.2 We will charge:

* £2 for any payment to the account other than by direct bank transfer (using the Faster Payments Service, BACS or CHAPS), Direct Debit, debit card, or transfer from an Egg Savings Account;
* a handling fee of 3% of the amount of each Cash Advance (minimum fee £3.00);
* a handling fee of 3% on each Transferred Balance, or less if we tell you so;
* 2.95% commission on all Transactions which have to be converted into sterling (see Condition 9.2 of the Egg Money Conditions);
* £2 for each paper statement;
* if you ask us for any non-standard service, an amount which we will tell you before we provide the service; and
* a top-up fee where the amount of interest charged to your Account on any statement is less than 50p and the fee will be the amount required to make the top-up fee plus that interest equal to 50p.

Most of that was pre-existing except for the balance transfer fee, increase in commission and the 50p "top-up fee". What I find most annoying was that in the e-mail that details the changes there is absolutely no indication of this - the information on 7.2 is as follows:

Clause 7.2 – is changed to increase the commission on Transactions that have to be converted to Sterling, to introduce handling fees for Balance Transfers and Cash Advances (which are now defined to include Gambling Transactions) and to increase the fee that applies to Gambling Transactions. It has also changed to include reference to the Faster Payments Service.

This mentions everything else, but not this new fee that will affect everyone who pays off their balance in full each month. I would immediately cancel the card, but that would mean losing my cashback so far this year, so I'm going to hang on to it until March and the cashback is paid then get rid of it.

Stephen