Interest on transfer fee with EGG?

lisyloo

Hi,

First apologies if this question has been asked before.
I have done an SBT with EGG.
I've been chrged £50 transfer fee (which is fine).

What I want to know is, will they charged me interest on it?

If I make the min 2% payment will they allocate it to the transfer first or the fee?
Should I pay £50 extra in the first month to pay the fee or am I stuck with it?

Any advice appreciated.

And yes, I have read the small print and couldn't see transfer fees covere din the order of allocation of repyaments.

Thanks

Milarky

http://new.egg.com/visitor/0,2388,3_11084--View_152-bID_ECActivatingCardFAQ-dva_1,00.html#howarepaymentsappliedtomyaccount?

[Doesn't really answer your question, though, does it?]

Logically they would charge whatever rate the balance transfer was charged at [if any] rather than the 'standard' rate by default. [i.e. I'm assuming that the fee simply becomes part of the balance - whether the 'top' part or the 'bottom' being immaterial - so that the first payment you make goes towards clearing that fee by reducing the balance. N.B. Fee is: '2% capped at £50', mimimum payment is '2% of balance' so for 0% the first minimum payment would reduce the balance by more than the amount of the fee and for 'low' rates - a fee only applies when you do SBTs at 'special promotion' rates or initial 0% on new cards - it will probably reduce the balance by more than the amount of the fee, and anyway you can pay anything you want on top of the min payment]

HTH

lisyloo

Thanks for the reply.
Egg have told me that they won't charge interest on the fee.

I was just concerned that it would be paid off last and I'd get 5 months worth of interest on it.