Egg - interest on balance transfer fee

elliemoo

Did a balance transfer to Egg in December for £4500. Had cleared account back in July but was offered 1.9% until May. Paid £50.00 bt fee.

In December's statement was charged the interest on the £4500. Made payment at beginning of January, now got January statement which shows the interest charged on the bt, but also another entry for "merchandise" interest. I sent a secure message to find out what this was and was told that the bt fee counts as a purchase therefore is liable for merchandise interest.

The amount of interest charged was small only 60 pence, but I can't find anywhere in the terms and conditions that the bt fee would be treated as a purchase.

Anyone with similar.

YorkshireBoy

elliemoo wrote:

The amount of interest charged was small only 60 pence, but I can't find anywhere in the terms and conditions that the bt fee would be treated as a purchase.

Section 5.

Jazzking

Sucks doesn't it...? I transferred £2000 from my Egg Card this month, and was charged 2% BT fee. Fee was £40, but this is charged at their standard 16.9% interest, and will continue to be charged at this rate until I clear the balance.

It all depends on the order in which payments are allocated, and whether the BT fee is listed as a "charge" or a "purchase"... Always read the small print!

budgetflyer

elliemoo wrote:

Did a balance transfer to Egg in December for £4500. Had cleared account back in July but was offered 1.9% until May. Paid £50.00 bt fee.

In December's statement was charged the interest on the £4500. Made payment at beginning of January, now got January statement which shows the interest charged on the bt, but also another entry for "merchandise" interest. I sent a secure message to find out what this was and was told that the bt fee counts as a purchase therefore is liable for merchandise interest.

The amount of interest charged was small only 60 pence, but I can't find anywhere in the terms and conditions that the bt fee would be treated as a purchase.

Anyone with similar.

was this 1.9% deal in addition to anniversary 0% BT?

charlie12

I was also charged "merchandise interest" on my £50 BT fee during the 0% period. As the fee is treated as a purchase, and my 0% deal was for purchases and BTs from May 05 to Nov 05, and then 0% on BTs only from Nov 05 to Feb 06, I was only charged interest on the fee from Nov 05 to Feb 06.

A little annoying, not too fussed though as it's a very small amount (in my case it totalled less than £1)

dealseeker

I was charged overlimit fee £25 (beacause BT took me over the credit limit).
Then charged merchanting interet on the BT fee. c. £0.80
Complained and got it sorted.

The system continues to charge me interest each month but each month they now have to to diarise for the day after my statement comes out manually go in and credit my account. :rotfl:

The overlimit fee was refunded with little hassle. Recommend you use secure messaging and don't give up on their first response. :money:

g-man_9

Hi everyone, ..First time here so go easy on me!!!
I paid off my Egg card on the 3rd January for the full amount of £3.811.21 ...yet on the 24th January they have added £13.69 merchandise interest payment!!!! ...Even though I have not used the card in over 3 years!!

Does this sound right??

benf90

g-man wrote: »

Hi everyone, ..First time here so go easy on me!!!
I paid off my Egg card on the 3rd January for the full amount of £3.811.21 ...yet on the 24th January they have added £13.69 merchandise interest payment!!!! ...Even though I have not used the card in over 3 years!!

Does this sound right??

Yeah, most credit cards are like this.

It carries on accruing interest up until the day it is cleared (if you were paying less than full balance previous months).

24th must be your statement date, so the interest applied on 24th Jan will be the interest that accrued between 25th Dec 07 till 3rd Jan 08 when you cleared the card.

If you clear that £13.69 on time then it should be the last of the interest to go on.

Just as an added point, this thread is very old and isn't the case anymore. Egg stopped charging interest on BT fees (on 0% BT deals) around a year ago.