Egg minimum repayment changes.

johnsmiffy

Beware, Egg have recently introduced a change to their minimum payment calculation. They informed customers by e-mail in October (but did not include any details), and say they sent information by post.

However, when checking my latest statement I noticed that the anount shown on the statement did not match the percentage as shown on the statement information.

The statement information says:

Minimum Repayments:
The full outstanding balance if it is less than £5, but otherwise the greater of
1. £5; or
2. 2% of the Revolving balance; or
3. interest plus repayment protection premium; plus for Transferred Balances made during any promotional periods the greater of
1. £5; or
2. 2% of the Transferred Balance.

However, my minimum repayment has been changed to the new calculation of interest + 1% of revolving balance.

I asked Egg to change my minimum payment back as the statement information did not match, i.e. the figure shown did not mtch the statement information. They refused saying they could not, and would not especially as they had sent the information out. All they would offer was to refer this matter to their Customer Services dep't as a complaint!

The pointed me to a page on their web site showing the details, however, I also found a page showing the T & C showing the old minimum payment amounts.

They did however agree that there was a discrepancy with the information shown (A did not equal B!).

Does anybody have any advice on where I can go from here? Surely they should produce information that matches, and is not misleading.

I was even told that Egg do not mis-lead customers. :rotfl: I laughed my socks off at this and said thats why the FSA had just received over £700k from them in fines over PPI!

Paul_Herring

johnsmiffy wrote: »

Does anybody have any advice on where I can go from here?

Change your direct debit from "minimum" to a fixed payment of 2% of your typical balance/maximum balance.

stu8975

I had the same problem, did not receive anything via post or email relating to the changes, when i queried this i was pointed to the new terms that they said they sent..Under the repayment section it states the minimum repayment will be as follows:

[FONT=Arial, Helvetica, sans-serif]the total of (i) interest billed on the statement on the Revolving Balance (ii) 1% of the Revolving Balance (iii) any Card Repayment Protection premium shown on your statement and (iv) billed fees for late or returned payments shown on your statement.

so basically the new terms mean you are paying approx 3% minimum payment as oppose to the previous 2%.
[/FONT]

sunshinebear_2

Egg have changed my min payment from £99 to £132, totally unacceptable but we cant do anything about it as if you pay the min amount they just increase your direct debit.

I am now paying £150 per month which leaves me with £75 left after my debt repayments have gone out.

Egg should be reported for increasing minimum payments without notifying anyone.

jonrockb

Just called Egg about this - as my minimum payment has shot up £50.

They say they sent me a letter which detailed that my minimum payments were now 3% of balance - when I said that no such letter had been recieved - I just got told "well we sent it"

Time to start claiming that PPI back I think - though I've cancelled it - to try and pay the bill back quicker - this puts me back at square one.

trev83

These were the old terms I agreed to. I dont see how they can just change it. Im not paying an extra £20 a month and they cancelled the card earlier this year along with many others i believe, so im just paying the money back and its a struggle to keep up with it and i cannot see an end point at this rate, now they go and do this. I did not recieve an email or a letter that i can recall and when i emailed egg they sent me a link to the new terms which didnt work. Im not sure what to do, will a formal complaint work and then FOS? or are they within their rights to do this. I wish id never taken this card out now with them. Im going to also look into the PPI insurance refund although mine wasnt taken out over the phone it was online i think when i got the card so not sure ill be able to do this?




REPAYMENTS

Each month you must pay by Direct Debit at least the minimum payment stated in your statement by the Payment Date. The minimum payment will be:

• the full Revolving Balance if it is less than £5, but otherwise the greater of 2% of the Revolving Balance and £5, or (if it is more) the total of (i) interest and (ii) the Card Repayment Protection premium, both as shown in your statement

Plus for each Transferred Balance made during an introductory rate or promotional rate period for Transferred Balances (but only for the duration of that period);

• the full amount of the Transferred Balance if it is less than £5, but otherwise the greater of 2% of the Transferred Balance and £5.

(See Condition 10 of the Egg Card Conditions for further details)

We will collect the amount you tell us you want to repay so that it is paid into the Account by the Payment Date.

beachey_2

I've had the same problems with Egg. I noticed on my statement that my minimum payment had really been hiked up so rang them. They said they had informed me by letter in October.....um...no?

Not very impressed with them or their service.

DifferentFromTheNorm

For those that Egg are saying they sent letters to, have you checked your details are up to date?

Unless things have changed recently the only time Egg ever send a letter is:

1. If it's a very old card that still gets paper statements. These are almost none existent now, these cards were only available when Egg were a brand new start up. Or;

2. If they've sent an email and it's come back as undelivered.

If your email address is up to date then check your junk mail filter. I received the email about the changes to the minimum payment calculation as have others, so they have informed customers about it.

To check your details are up to date log in and select the 'Personal details' tab.

Trev83, yes they can change the terms. All banks and credit card companies etc etc are continusouly updating and revising the T&Cs. I've lost count of the amount of times my current account and credit cards T&Cs have changed.

You agreed that they can change the T&Cs. See section 17 for more information.

madkitty

I have just had a big to-do with them as well as my min payment taKen was £50 more than last month - I have never received anything in writing and my statement is clearly stating 2% interest. If anyone has got any advice I would be grateful however this will be going in writing straight away too them.

thumos_2

Seems like there's a load of us really miffed off with Egg lately, and with good reason. I too have been stung by the hike in minimum payment, but I notice very little of it going towards reducing my outstanding balance. So, the next step for me is to see if they still have a copy of the original credit agreement - without it they can't actually enforce anything! :mad:

madkitty

but the extra 1% is entirely towards your balance is it not?