Egg Money Interest Rate Hike

tednol

You guys have got off lightly. I have had my APR increased from 16.9% to an absolutely eye watering 21.9%. Suffice to say I'm on the phone to Egg now cancelling the 3 products I hold with them, namely my Egg Card, Egg Money, and Egg Savings accounts.

A couple of weeks ago I paid off a total on £4k on my Egg credit cards reducing the balances to zero, and the timing seems strange frankly. I asked the guy on the phone why the rate has increased (I've recently gone from being a student with an income of practically zero to having a good graduate job paying circa £30k a year - I've probably never posed a lower risk to Egg than I do at present) and he couldn't give me a decent answer, hence closing all accounts.

Probably going to give Abbey's new card a whirl to compliment my Shell Citi Mastercard.

benf90

jdavtz wrote: »

"We will charge 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."

applies when interest charged to account is zero (I think you could read that it would apply, if you wanted to, which would be bad).

That's just the 'Minimum finance charge' which is used on the normal Egg Card too. It's only applied if interest is applied, and if it's less than 50p. If there's no interest at all then there's no 'minimum finance charge'.

With regards to them emailing people, it's a legal requirement that they give us sufficient notice. Changes to interest rates need 7 days notice, and changes to the T&Cs need 30 days notice.

The fact we're getting more than 7 days notice of the change in interest rates is merely because they also need to change their T&Cs too. As you say they're a business, so they're not giving us the 'extra' time or emailing us because they're feeling nice, they're required to by law.

I would presume that the majority of people pay the balance off in full each month. But for those people that will be affected by any changes to the interest rate or those unhappy; probably best not to close the card down (if anyone was actually thinking of that).

I haven't had time to read through the revised T&Cs yet, but it used to say before that if you closed the card you lost any cashback that had accrued since it was last paid out (ie, March 2008). I doubt that's been removed.

benf90

tednol wrote: »

You guys have got off lightly. I have had my APR increased from 16.9% to an absolutely eye watering 21.9%. Suffice to say I'm on the phone to Egg now cancelling the 3 products I hold with them, namely my Egg Card, Egg Money, and Egg Savings accounts.

A couple of weeks ago I paid off a total on £4k on my Egg credit cards reducing the balances to zero, and the timing seems strange frankly. I asked the guy on the phone why the rate has increased (I've recently gone from being a student with an income of practically zero to having a good graduate job paying circa £30k a year - I've probably never posed a lower risk to Egg than I do at present) and he couldn't give me a decent answer, hence closing all accounts.

Probably going to give Abbey's new card a whirl to compliment my Shell Citi Mastercard.

Sorry to hear your rate was increased. However, 21.9% isn't the highest rate that Egg do.

Also... you are aware that Egg are owned by Citi? And are you aware that you will lose any cashback you've accrued on your Egg Money account if you close it now?

YorkshireBoy

benf90 wrote: »

I haven't had time to read through the revised T&Cs yet, but it used to say before that if you closed the card you lost any cashback that had accrued since it was last paid out (ie, March 2008). I doubt that's been removed.

It hasn't...

13.4 If you give us notice to close your Account under Condition 22 we will not pay you any Cash Back you may have earned up to the day your Account is closed.

jmarko

i had this too. am quite glad that they only gave me a pointless £500 limit now - cos i can afford to pay it off in full each month. no way i'll let this one overrun!

clio

BTW What is the highest APR Egg do?? i can only see top rate for Egg Credit Card @ 16.9 and EM Card @ 16.9

benf90

clio wrote: »

BTW What is the highest APR Egg do?? i can only see top rate for Egg Credit Card @ 16.9 and EM Card @ 16.9

The last time they increased rates on their Egg Card some customers went up to 26.9% on both purchases and cash advances.

That could have changed though.

Unless things have changed on the standard Egg Card they had:

6.9 , 15.9 , 16.9 , 17.9 , 19.9 , 21.9 , 26.9 (on purchases) and 22.9 , 23.9 , 26.9 (on cash advances).

On Egg Money it used to be:

7.9 , 10.9 , 16.9 (the 10.9 were very old customers who originally had the Boots credit card which Egg provided - later changed to Egg Blue then Egg Money).

** The above is going from my memory though of what someone once told me **

clio

Where did you find that info m8 i looked lol..

tednol

benf90 wrote: »

Sorry to hear your rate was increased. However, 21.9% isn't the highest rate that Egg do.

Also... you are aware that Egg are owned by Citi? And are you aware that you will lose any cashback you've accrued on your Egg Money account if you close it now?

Yup I know Egg own Citi, and the irony isn't lost on me. However the 3% cash back on petrol and 1% cash back on everything else is too good to loose! I always pay the balance of my Shell Citi Mastercard in full and in fact... I don't even know the APR on that account.

Regards cashback accured on my Egg accounts, I haven't put any purchases on either of them for a year or so. They are throw-backs to my student days and I don't ever intend to use credit cards for borrowing again.

benf90

clio wrote: »

Where did you find that info m8 i looked lol..

I don't think Egg actually publish it anywhere. An old friend worked at Egg, they were made redundant a few months back though so I'm unable to see if those rates are still correct.