Why are Egg charging me an above avg rate ?

Kev64

I've been a customer of Egg for years and they're making a fair bit of money from me in interest - there's £7.5k on my card. I've just realised that I'm being charged 17.9% APR - 1% above the advertised 'Typical Rate'. I've asked them why and they've just come back with :-

"The interest rate changes take into account current market conditions, information gathered from Credit Reference Agencies and your relationship with Egg. By reviewing this information we've been able to allocate interest rates on an individual basis. We do review interest rates regularly but at present there aren't any specific dates set for these reviews."

Is there any way I can get them to lower my rate to the standard one ?

YorkshireBoy

Kev64 wrote: »

Is there any way I can get them to lower my rate to the standard one ?

Reduce the size of your Egg balance.

Reduce the balances you have with other providers.

Kev64

Err... thanks. Easier said than done I'm afraid!

YorkshireBoy

Kev64 wrote: »

I've been a customer of Egg for years

Do they have your current salary on file? If it's risen by more than the 'cost of living' in this time, you might want to let them know?

At the end of the day though, an Egg credit card at only 1% over typical isn't a bad deal in the current climate.

Any chance you could shuffle some debt around for cheaper rates? I'm assuming your credit rating isn't too good, otherwise you'd be applying for other (0%/LOB) products?

villabadger

I am with you on this one. I had the same thing a couple of months ago and they came back with an unbelievably arrogant response.

They have really wound me up today though - I have a small loan that finishes early next year and they have just sent me this.......


To give you an idea, you could borrow:Loan amount£6,000Monthly repayments£215.33Over36 months Total amount payable£7,751.88Your rate18.9% APR typicalTo take advantage of this personalised illustration, you need to apply by 31 August 2008.

This is such a fantastic deal......I must call them tomorrow to snap their hands off!!! They must think people are stupid to think that they are offering such a deal to one of their long term customers. I'll have the last laugh though as I will be paying everything off next month and cutting up their credit card!:D

Goodbye Egg and good riddance - go try and shaft someone else!:p

MABLE

villabadger wrote: »

I am with you on this one. I had the same thing a couple of months ago and they came back with an unbelievably arrogant response.

They have really wound me up today though - I have a small loan that finishes early next year and they have just sent me this.......


To give you an idea, you could borrow:Loan amount£6,000Monthly repayments£215.33Over36 months Total amount payable£7,751.88Your rate18.9% APR typicalTo take advantage of this personalised illustration, you need to apply by 31 August 2008.

This is such a fantastic deal......I must call them tomorrow to snap their hands off!!! They must think people are stupid to think that they are offering such a deal to one of their long term customers. I'll have the last laugh though as I will be paying everything off next month and cutting up their credit card!:D

Goodbye Egg and good riddance - go try and shaft someone else!:p

Because you are a long term customer they know you and how you run your account. That why you are being charged 18.9 Apr. They MAY regard you as one of their more riskier customers.

If you feel disatisfied its may be better then to waive EGG goodbye and as your relationship with them has broken down.

villabadger

My post is not really intended to highlight my personal situation - I'm well in control of that. It's more to highlight the ridiculous practices of companies such as egg, mbna etc., that offer stupidly high lending rates. I suppose the only thing you can do is vote with your feet and leave. Guess these are the 'good' guys though when compared to the likes of provident.

Cheers