Egg 0% offer. Misselling Advice

evilpikachu2000

I recently transferred a balance to Egg Card of approx. £2700 advertised at 0% until February.
This was an offer for current customers until 31st July. The advertising said:

'0% for up to 7 months on balance transfers
Make the most of it; offers like this don't come around very often. Simply transfer any balances you've got on credit and store cards, loans and overdrafts to your Egg Card by 31 July 2008. On those balances you'll pay 0% until 3 February 2009.'

So I transferred the balance, paid the 2.5% balance transfer fee and awaited my next statement with baited breath.
Imagine my surprise to receive a bill for £70 for minimum amount.
Upon calling the operators to ask why this was they stated that I paid the balance transfer fee and also my minimum payment
of £13 for my previous statement on the 11th August but now the minimum is 2% for the minimum payment to be taken out on the 28th August.
When I complained that the amount is supposed to be 0% and I should pay around £25 minimum payment (as I do on 0% cards I have with rival companies) I was told this was incorrect and with Egg there is a 2% minimum no matter what offer I'm on.

Obviously I'm extremely angry about this and have transferrred my egg balance to a rival 0% card straight away,
I have also been given a competitive quote for a new loan to refinance the Egg Loan I currently have and basically move all my accounts away from them.

They have since got back to me and claimed there was no misselling but I still believe there was
do you think its worth me taking it up with the FSA to get my £73 back?

YorkshireBoy

The Egg minimum payment is 2% (since this was an existing card you should have known that...surely?). What you were paying before on your MBNA card(s) is irrelevant.

So, in summary, you've paid a 2.5% BT for nothing. Isn't that a case of cutting your nose off to spite your face?

The FSA (or, more accurately the FOS) will not entertain your complaint.

NickX

Yep, the Egg Minimum Payment is 2% of Statement Balance, always has been, nothing has changed.

I am not sure why you think this is a case of miss-selling ?

MBNA are pretty unique in offering Minimum payments fixed at a low level of between £5 and £25 during a promotional period.

evilpikachu2000

thanks for the responses, though why "yorkshireboy" has to be so rude about it I don't know why.

Are there any other companies apart from MBNA that charge low fixed rates for minimum payments?

NickX

evilpikachu2000 wrote: »

Are there any other companies apart from MBNA that charge low fixed rates for minimum payments?

Yes I can confirm that Abbey Zero has a minimum payment of £5 during the promotional period.

A good deal of 6 months interest free with NO fee is offered, however watch the customer service is very lapse - there is a 10 page thread on here detailing the various issues that have arisen.

YorkshireBoy

evilpikachu2000 wrote: »

though why "yorkshireboy" has to be so rude about it I don't know why.

Rude?

Are there any other companies apart from MBNA that charge low fixed rates for minimum payments?

Only Abbey, and other MBNA run cards such as Virgin, A&L, Sony, etc. There's a list of MBNA run cards here...

www.stoozing.com/cards.htm

Similar to MBNA, Abbey operate with £5 minimum payments during an introductory rate. Also like MBNA, they do the 'interest + £5' outside the introductory period.

normanmark

evilpikachu2000 wrote: »

thanks for the responses, though why "yorkshireboy" has to be so rude about it I don't know why.

He wasn't being rude, it was just your initial post was firing off about misselling and FSA when in fact you just didnt read the T&C's correctly!

MABLE

evilpikachu2000 wrote: »

thanks for the responses, though why "yorkshireboy" has to be so rude about it I don't know why.

Are there any other companies apart from MBNA that charge low fixed rates for minimum payments?

Dont be put off by posting on here just because some posters are anything but polite.

Voyager2002

OP, you confused zero interest with zero minimum payment.

LongTermLurker

evilpikachu2000 wrote: »

thanks for the responses, though why "yorkshireboy" has to be so rude about it I don't know why.

He didn't appear rude to me - he didn't slag you off, or even criticise you did he? Forthright, maybe, but definitely not rude. If you mean the "cutting off your nose to spite your face" comment, he's clearly right - you clearly didn't read or understand the Ts & Cs, you paid a fee and then moved your business elsewhere, although Egg hadn't done anything to warrant losing your custom. So yes, you did something that wasn't in your best interest pretty much out of spite, and that warrants his statement. In fact, Egg have some of the clearest contracts in the business and everything is written down in plain English; of course, they can't account for people not actually reading them. (I guess that makes me equally rude for being critical.)

YB, along with many others, gives a lot of good advice on these forums, but no-one will beat about the bush with people who have a go at banks just because they've made a mistake themselves. A spade's a spade and all that good stuff.

LongTermLurker

evilpikachu2000 wrote: »

do you think its worth me taking it up with the FSA to get my £73 back?

BTW, in case it's not obvious, you haven't lost £73 (not actually sure where you get that figure from) - you were on a 0% interest deal, so every penny you've paid (apart from the 2.5% up-front fee = £67.50?) has gone towards paying off the loan capital. If you're talking about trying to claim back the fee then no, you can't; you paid the fee so that you would pay no interest on the loan, but you chose to move to someone else and probably pay another 3% fee if it was to MBNA. In that case, I reckon you've paid £146.40 in fees for your deal.

Each lender sets their own minimum payment; it could be argued that Egg are being more responsible by insisting you pay off your debts in a reasonable timeframe, rather than paying only £25pm and finding at the end of the 7 months you still owed £2511 - they should be lauded for that, surely?