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Egg - Minimum Finance Charge 50p
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sanfrancisco
Posts: 645 Forumite
in Credit cards
Hi guys,
I did a search to see if anyone has had this problem, but nothing came up.
On the 20th Nov an entry appeared on my online statement saying
Minimum Finance Charge £0.50p
Upon emailing them, this is the reponse:
Dear sanfrancisco
As of 14th November 2006 we introduced a minimum interest charge of ?0.50 for Egg Card and Egg Money customers whose interest is less than ?0.50 and who haven't been charged either a balance transfer, cash advance or over-limit fee.
Customers who have less than ?0.50 interest on their card in a statement period will now be charged ?0.50, rather than the lesser amount.
A debit card payment is the quickest way to make an additional payment.
Click the 'Your money' tab, then select 'view' to the right of your Egg Card. then select 'One-off payment' on the left-hand side of the page. From here just follow the on screen instructions.
Please contact me if you've any further queries.
Thanks for your message.
Regards
Well, this is basically a £6.00 a year fee for those of us who never give Egg any money.
I will now shut the account down, although it is the old Egg card and I am loathed to do so.
Has anyone else experienced the same thing? I am also refusing to pay this 50p, as I have received no communication from Egg that this was going to be introduced. Does anyone know whether there are laws that say they have to warn/teel customers about things like this?
Many Thanks for any help.
I did a search to see if anyone has had this problem, but nothing came up.
On the 20th Nov an entry appeared on my online statement saying
Minimum Finance Charge £0.50p
Upon emailing them, this is the reponse:
Dear sanfrancisco
As of 14th November 2006 we introduced a minimum interest charge of ?0.50 for Egg Card and Egg Money customers whose interest is less than ?0.50 and who haven't been charged either a balance transfer, cash advance or over-limit fee.
Customers who have less than ?0.50 interest on their card in a statement period will now be charged ?0.50, rather than the lesser amount.
A debit card payment is the quickest way to make an additional payment.
Click the 'Your money' tab, then select 'view' to the right of your Egg Card. then select 'One-off payment' on the left-hand side of the page. From here just follow the on screen instructions.
Please contact me if you've any further queries.
Thanks for your message.
Regards
Well, this is basically a £6.00 a year fee for those of us who never give Egg any money.
I will now shut the account down, although it is the old Egg card and I am loathed to do so.
Has anyone else experienced the same thing? I am also refusing to pay this 50p, as I have received no communication from Egg that this was going to be introduced. Does anyone know whether there are laws that say they have to warn/teel customers about things like this?
Many Thanks for any help.
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Comments
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It is a fee to only those who pay interest.
If you pay in full each month you should not be charged.
If your monthly interest is less than 50p your outstanding capital is not much is it?0 -
its only trailing interest u wont be charged each month0
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Thanks for the reponses. I am now clear. Thanks again.0
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ejones999 wrote:It is a fee to only those who pay interest.
If you pay in full each month you should not be charged.
If your monthly interest is less than 50p your outstanding capital is not much is it?
Just checked my account and I have had no outstanding balance since October yet they have charged me this minimum finance charge. Do I have a case to reclaim this as I am not paying any interest on the card at all?0 -
Then wait a little!sanfrancisco wrote:I will now shut the account down, although it is the old Egg card and I am loathed to do so.
NatWest recently changed their credit card Terms and Conditions to allow they do the same. I was amazed, as I though that clearly invalidated any APR claims they made. If I had used the card to only ever buy one item, say, one First Class stamp, and then had been hit with 50p interest month after month, the APR would have been phenomenally high. It was only a few weeks later that new Terms and Conditions turned up. This time removing the 50p minimum interest. What a surprise.古池や蛙飛込む水の音0 -
It sounds like you've been paying 'residual' interest, which has been incurred between your statement date and payment due date. You'll stop paying this once you've paid two consecutive statements in full. You could have stopped it sooner had you overpaid your statement to create a small positive balance.marcovan wrote:Just checked my account and I have had no outstanding balance since October yet they have charged me this minimum finance charge. Do I have a case to reclaim this as I am not paying any interest on the card at all?
So no, I don't believe you have a "case to reclaim".0 -
Maybe I'm just being a bit thick here but I pay off my egg card in full each month but I have been hit with the MINIMUM FINANCE CHARGE of 50p for the last two months too. OK it's not worth getting worked up about and not worth my time chasing them over it but I still don't understand why I have been charged. How can I avoid 'residual interest', I don't understand this at all. doh!0
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Maybe I'm just being a bit thick here but I pay off my egg card in full each month but I have been hit with the MINIMUM FINANCE CHARGE of 50p for the last two months too. OK it's not worth getting worked up about and not worth my time chasing them over it but I still don't understand why I have been charged. How can I avoid 'residual interest', I don't understand this at all. doh!
If you're paying the full balance off on time each month then it's most likely to be due to a cash advance.
Have you withdrawn any cash recently? Or perhaps made a gambling transaction? Might be best to take a look at your statements or just send them a message through the website if you don't want to talk to anyone.
**Edit** If you're paying the full balance by direct debit and the interest is due to a cash advance then you shouldn't be charged for more than 2 consecutive months. If there's one on your 3rd statement then just send them a message. They'll adjust your account so that it doesnt carry on accruing interest.
Or, you can just clear your balance down to zero now (by making a debit card or some other type of payment) and then clear it down to zero again after your next statement. It takes a few days for the payment to show and it will need to show as zero before you use the card again.0 -
Maybe I'm just being a bit thick here but I pay off my egg card in full each month but I have been hit with the MINIMUM FINANCE CHARGE of 50p for the last two months too. OK it's not worth getting worked up about and not worth my time chasing them over it but I still don't understand why I have been charged.
Sorry to resurrect this thread a few weeks later but I also pay my card off in full (I'm not being smug MoneySavers, 2007 was my first full year of doing so each month) and I also saw this charge and queried it via Egg's online support interface.
I was given an answer by one of the staff there which didn't sound like much more than re-stating terms and conditions without verifying how and why it was applied to my account, so I challenged them to explain how the term related to my account.
They came back and identified one gambling transaction from September which was eligible for this charge, but could not explain why I was still getting these charges if I was paying my account off in full. So they said the following:
Seems a bit flawed and prone to over-charging then. So worth pursuing if you get it and you're not convinced it's right.As you've been charged interest for more that two statements I've passed your details onto our Complex Servicing Team and asked them to adjust your account so that no more cash interest is applied. I've also requested that they refund cash interest that you shouldn't have been charged at the same time. Please allow 3-5 working days for this to be resolved.0 -
I too have experienced this problem. I have had a "minumum finance charge" of 50p applied to my account even though I have consistently paid off the full balance, well in advance of the payment deadline to ensure cleared funds always reach the account to avoid interest charges, for at least the past 5 years.
This seems a bit underhand to say the least if intentional, and sloppy if a banking error!
I am awaiting a response from egg, but am seriously considering ending my dealings with them, and advising everyone I can to do the same. I suspect this may be part of a strategy by egg to off-load thier less profitable customers who pay of thier balances in full?0
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