Egg Money Interest Rate Hike

Codswallop

I'm in a similar situation to tednol, they have increased the interest rate from 16.9% to 21% :eek: Fortunately I have just made a large balance transfer to another card so there is a lot less in there than there was but there's still a thousand left in there. Have to get it out of there and fast, to me that seems like an obscene interest rate on a par with the dreaded store cards .

clio

well egg responded to my secure message my apr is staying as it is..
and there is a 3% fee for balance transfers, and for Cash Advances if
it puts your account into a negative balance..

tbl

I am mightily peeved about these changes, as they are going to change the entire way I operate my Egg Money card.

In essence I transfer over a large sum from my current account to cover non-billed expenses (food, fuel, working away, going out, casual spending)
I then use Egg Money for almost all expenditure in a month, I withdraw cash on it (as it's free), and then clear it off every month.

This maximises my cashback, and keeps all expenditure separate from my current account.

Now, they are going to not only charge a more than double rate for 'cash advances', but they are now going to start charging interest from the moment you withdraw the cash.
This goes against the whole ethos of the Egg Money card; there is now very little to discriminate this from any other credit card.

Bummer!

jonnyenglish

tbl wrote: »

I am mightily peeved about these changes, as they are going to change the entire way I operate my Egg Money card.

In essence I transfer over a large sum from my current account to cover non-billed expenses (food, fuel, working away, going out, casual spending)
I then use Egg Money for almost all expenditure in a month, I withdraw cash on it (as it's free), and then clear it off every month.

This maximises my cashback, and keeps all expenditure separate from my current account.

Now, they are going to not only charge a more than double rate for 'cash advances', but they are now going to start charging interest from the moment you withdraw the cash.
This goes against the whole ethos of the Egg Money card; there is now very little to discriminate this from any other credit card.

Bummer!

Surely they will only charge a rate for cash advances if it gives you a negative balance? My understanding is that they will be no charge still if you withdraw cash using your egg money credit card with a postive balance.

taurusgb

clio wrote: »

well egg responded to my secure message my apr is staying as it is..
and there is a 3% fee for balance transfers, and for Cash Advances if
it puts your account into a negative balance..

The 3% balance transfer fee - is this charged if you send them a secure message asking them to transfer an amount from your egg money account to your current account? I have had no email from them advising any changes and have just done a balance transfer this way - they never advised I would be charged for it.

~Chameleon~

I haven't yet received an email but have just logged in to check the interest rate on EM and it has jumped from 7.9% to 16.9% :eek:

Not that I ever pay any interest on this card anyway but it would have been nice to be informed :rolleyes:

Can anyone also confirm that the new charges are only applied if a transaction puts the card into negative balance please?

I'm expecting a BT amount to go into the acc sometime next week and from there I'll be moving it into ES, but at some point I will need to transfer some back to EM to withdraw cash at an ATM machine. I fully intend the card to remain in positive balance throughout all these transactions so won't be a happy bunny if I get slapped with any charges!

clio

TaurusGB has it taken you into a neg balance if so then it may be waived as the new termas may not be in force yet as the apr rise is not coming into force till next months . send them a message matey to get peace of mind.

jdavtz

~Chameleon~ wrote: »

Can anyone also confirm that the new charges are only applied if a transaction puts the card into negative balance please?

I emailed Egg a few days ago, here's what they said:

Egg wrote:

If any interest is payable, the minimum amount which will be applied to your account will be 50p. This charge doesn't apply if you have a zero balance or are in credit.

You'll incur a 3% fee for any balance transfers made whilst your account has a debit balance.

If you're in credit, you'll not incur a fee for any balance transfers.

If you've got any further enquiries, feel free to contact me.

Thanks for your message.

Regards

Shelley Narbeth
Internet Customer Services