Egg Money Terms & Conditions Changes

Imhotep

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

thescouselander

Yes, it sucks. Egg money used to be a good card but I'm definately getting rid once my current balance is cleared.

lisyloo

this new fee that will affect everyone who pays off their balance in full each month

Are you sure about this?
My asusmption is that this is for interest amounts of greater than zero but I guess I will have to send a secure message.

tyllwyd

Is there a difference between clause 7.2 and condition 7.2? Because in my email, it says
"Clause 4.5 – this clause has been deleted. The minimum interest charge of 50p that was contained in this condition is replaced by a fee of the same amount as now specified in condition 7.2."

I've got the e-mail and I'm a bit confused about something else - I'm currently paying 16.9% interest, but in the e-mail it says that my interest rate will be 12.9% from September. I'm a bit taken aback that they would reduce the interest rate - has that happened to anyone else or it is likely to be just a mistake? (I'm a 'good customer' in that I regularly run up amounts owing on my card but pay it back as and when I have the cash.)

rooftopgambler

I just got an email saying my interest rate is going up to 21.9%

JimmyTheWig

tyllwyd wrote: »

Is there a difference between clause 7.2 and condition 7.2? Because in my email, it says
"Clause 4.5 – this clause has been deleted. The minimum interest charge of 50p that was contained in this condition is replaced by a fee of the same amount as now specified in condition 7.2."

I don't think there is a difference between a condition and a clause.

But this seems to clarify that 50p will be charged if no interest is payable. Unless they are just changing it from an "interest charge" to a "fee"?

jdavtz

Imhotep wrote: »

[...]this new fee that will affect everyone who pays off their balance in full each month.[...]

I sent a secure message about this a few days ago; here's their reply:

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

goose

tyllwyd wrote: »

I've got the e-mail and I'm a bit confused about something else - I'm currently paying 16.9% interest, but in the e-mail it says that my interest rate will be 12.9% from September. I'm a bit taken aback that they would reduce the interest rate - has that happened to anyone else or it is likely to be just a mistake? (I'm a 'good customer' in that I regularly run up amounts owing on my card but pay it back as and when I have the cash.)

Mine's doing exactly the same thing, and I manage my account in the same way as you do.

MABLE

Received my terms and conditions about 30 mins ago via my email account.
They are reducing my Egg money apr down to 11.9 and Egg card down to 16.9.

However not really important because I use the money card for positive balances anyway.

CraigDavid

Just got an email to say my APR is going up from 10.9 to 16.9

tiffybee

rooftopgambler wrote: »

I just got an email saying my interest rate is going up to 21.9%

me too :-( I am not happy about this, I though I was being punished but I never miss a payment although I usually only pay the minimum. I'll be looking to switch my balance elsewhere I think.