The end of Egg Money?

financial_warrior

I've had an Egg Money (Mastercard) credit card since 2005. When it launched, it was sold to as 'spending' card, essentially replacing cash.

6.9% on a negative balance / 4% on a positive balance
1% Cashback on all spend (up to £200 per year)
No foreign transaction fees
No cash advance fees

Since Citigroup have taken over Egg, this product has become less and less favorable. The APR is now 12.9% on a negative balance for new customers and in September they're imposing a 2.95% commission on all transactions that aren't in Sterling. They're also now implementing a 3% cash advance fee. These charges bother me the most because I use this card frequently when I'm out of the country. It served as a very cost-effective way of booking hotels, travel, and obtaining currency abroad.

In the letter they sent, it merely states "If you are unhappy with the changes we're making, you have the right to close you account..."

Obviously, I'll be doing just that, as they clearly don't want to support this product any longer, and they also don't want my business.

Can anyone recommend good credit cards for overseas use?

Shimrod

The Nationwide card is fees free for overseas use. I keep a nationwide flex account and credit card just for holidays/buying abroad.

NickX

financial_warrior wrote: »

Can anyone recommend good credit cards for overseas use?

Abbey Zero and Nationwide Credit Cards do not charge commission on foreign currency transactions.

However, Cash Withdrawals on these cards is not adviseable because they will incur interest from the date of the withdrawal.

For drawing out cash when abroad, the Nationwide Debit Card account is ideal as this does not charge commission either.

Hope this helps.

YorkshireBoy

financial_warrior wrote: »

6.9% on a negative balance

I haven't had mine as long as you (Jan 2006), but mine's been 7.9% for a good while now (although it's rising to 12.9% from September).

No foreign transaction fees

Are you sure? I think mine has always had a 2.65% fee.

No cash advance fees

There are still no cash advance fees for withdrawing from a positive balance which, after all, is how they'd prefer you to operate the account judging by the very low credit limits offered these days. Also, you wouldn't want to pay 6.9%/7.9%/12.9% APR interest would you? I know I wouldn't, whether there was a fee or not!

In the letter they sent, it merely states "If you are unhappy with the changes we're making, you have the right to close you account..."

Obviously, I'll be doing just that, as they clearly don't want to support this product any longer, and they also don't want my business.

I wouldn't be rushing to close it because it's still a very good product IMHO.

clio

Here,s a tip matey if you think egg are crafty in what you suspect they have done, dont move to an Mbna/Virgin card because Egg are complete novices compared to the sharks up in sharksville usa. they will eat you up and not bother spitting owt out, they are that greedy they eat the bones and grissle as well lol...

acc

I am also planning to close my Egg card account, but because of the abysmal customer service.

However I am waiting until after the annual cashback payment date, in case the cashback is lost if the account is closed before the payment date.

financial_warrior

Thanks Shimrod and NickX, I'll have a look into these cards.

YorkshireBoy - Yes, I generally operate the account in the black. Clause 7.2 makes no differentiation between advances on positive or negative balances; there's a 3% charge. They term Cash Advance as:
"Cash, foreign currency, travellers' cheques or postal orders, or Gambling Transactions made using the Card or Card Number"

So anyone putting their Egg Money card into an ATM is liable to be charged. They never used to be. This also means they will now probably be recording withdrawals in the same way as Egg Card (Visa) customers, which will negatively affect internal scoring.

I agree that it has been a good product, that's why I've held it for so long. I'm just not sure sure it's continuing to be as good as the original proposition.

financial_warrior

clio wrote: »

Here,s a tip matey if you think egg are crafty in what you suspect they have done, dont move to an Mbna/Virgin card because Egg are complete novices compared to the sharks up in sharksville usa. they will eat you up and not bother spitting owt out, they are that greedy they eat the bones and grissle as well lol...

Yeh nice one... Who do you think owns Egg? One of the largest American financial institutions who happened to write down 40bn last year because of their sub-prime antics. I think they're more than capable at implementing toxic practices themselves; something Egg once stood against.

YorkshireBoy

financial_warrior wrote: »

YorkshireBoy - Yes, I generally operate the account in the black. Clause 7.2 makes no differentiation between advances on positive or negative balances; there's a 3% charge. They term Cash Advance as:
"Cash, foreign currency, travellers' cheques or postal orders, or Gambling Transactions made using the Card or Card Number"

So anyone putting their Egg Money card into an ATM is liable to be charged.

Egg Money allows me to pre-load a positive balance of nearly £100,000. Are you saying you believe they will charge me £3,000 to withdraw my own money?

It isn't going to happen. Indeed, the FAQ says...

We will not charge you a fee or interest for cash withdrawals when you have a positive balance. However, if a withdrawal gives you a negative balance you will be charged interest on the negative amount, and we will charge you a fee of 3% (minimum £3).

http://new.egg.com/visitor/0,2388,3_79766--View_1709-bID_EMonMovingFAQ-dva_1,00.html#howdoimakeawithdrawal?

This has also been confirmed by Egg in secure messages posted on the other Egg Money T&C's changes thread.

clio

Yeah Egg are now americian owned but they were never before, hence why they are moving up into the shark infested waters that mbna patrol. 2 things in common i can see, btw who owns/underwrites GEMoney they run
the Asda card.

sicker

Yes, I'm one of the folk who took the time to confirm with Egg Money that there would be NO CHARGE for withdrawels from atm's when balance is positive.