is Egg diddling me ?

Ivenofinmoney

Can anyone help, below is a sanitised version of my recent monthly statement from my egg card...

OPENING BALANCE £0.00
29 Sep 2005 BALANCE TRANSFER . GB £870.66 DR
29 Sep 2005 BALANCE TRANSFER . GB £1726.86 DR
03 Oct 2005 PURCHASE - REFUND £ 29.99 CR
03 Oct 2005 PURCHASE £59.97 DR
03 Oct 2005 PURCHASE £39.99 DR
10 Oct 2005 PAYMENT RECEIVED £ 2667.49 CR
18 Oct 2005 MERCHANDISE INTEREST AT 1.240 PER MONTH £9.45 DR
T/FER 0.00 AT 1.240% INT PER MONTH £0.00 DR
T/FER 0.00 AT 1.240% INT PER MONTH £0.71 DR
T/FER 0.00 AT 1.240% INT PER MONTH £1.41 DR


Key points ....

1) Opening balance was Zero
2) Net Purchases = £69.97
3) Balance Transfers = £2697.52 for a period of 11 Days
4) Full balance was cleared before statement date.


Can anybody explain to me how these interest figures have been calculated ? (Egg are being very defensive and as yet have been unwilling to give me a breakdown of the interest figures). So far Egg's response has been...

"you cleared your full statement balance on the 10th of October 2005, however for a payment to count towards the particular payment cycle you need to make the payment before five clear working of your payment date. Your payment date for that cycle was the 3rd of October 2005."

Whilst the £0.71 & £1.41 seem about right for 11 days worth of the two balance transfers, £9.45 seems a bit steep for £69.97 of purchases on credit for a week.

Any help on understanding this would be much appreciated !!

robnye

it might be an idea to give them a ring.......

Rafter

Just looks wrong and as if they are charging merchandise interest on the full purchase balance.

The payment cycle comment seems to be a red herring as you could not possibly have got a statement and time to pay between 3 and 10 October.

Call them back, tell them it is obviously wrong and make a formal complaint asking to have the interest recalculated and investigated within 7 days before you report them to the office of fair trading and ombudsman. That should get a reaction.

R.

Ivenofinmoney

Guys, Thanks - I think you are agreeing this doesn't look right !!!

Latest update - I sent the following mail....


Payment due for 3rd October was for the statement issued on 18th September at which time the balance of the account was zero.

Can you please review my account again, and explain how each of the 3 interest charges on my recent account statement have been reached.

And they responded....

I've checked your statement and can see the interest charges on your balance transfers have been broken down so you can see how much your paying on each balance transfer every month.

You also been charged merchandise interest as you didn't pay your full balance by your payment date which wa the 3rd October 2005.

Interest is calculated on a daily basis from the date each transaction, charge or transferred balance hits your account, until it is paid off. It's calculated as individual interest on each separate transaction, not from your overall statement balance.

If you require any further information please contact us, we're here to help.


I will be making a phone call shortly - I will update you again later !!

Rafter

Right - looks like a description problem.

The interest on £2600 at that rate is about 97p per day so the total interest charge looks correct.

The description is confusing though.

Sorry.

R.