Moving savings to Egg Money card

eltrot1979

Hi, I have an old Egg Money credit card that pays 4% AER on positive balances. I'm considering moving my non-ISA savings on to this card as the rate is much better and it would avoid the hassle of opening another savings account. Does this seem like a good idea? The only draw back I can think of is that I don't know if I would be protected should Egg run into trouble

Thanks

Paul_Herring

Any purchases you make won't be protected under Section 75 while you have a positive balance.

YorkshireBoy

eltrot1979 wrote: »

The only draw back I can think of is that I don't know if I would be protected should Egg run into trouble

Since Egg allow you to 'deposit' funds onto the card, they are classed as a 'deposit taker' for the purposes of the £50K FSCS protection.

Milarky

Paul_Herring wrote: »

Any purchases you make won't be protected under Section 75 while you have a positive balance.

(Paul, I think we've had this argument before:)!)

Paul_Herring

What argument? There's nothing to 'argue' about.

Given the opportunity to answer a clearly worded question, Egg clearly didn't state that they'd offer Sec.75 and instead 'it would depend [on the circumstances].' Sec.75 doesn't have such conditions.


(Yes, they may, out of the goodness of their hearts, sometimes, offer compensation as if it was like Sec.75, but that doesn't mean Sec.75 applies.)

eltrot1979

Thanks for all the replies!

I've emailed Egg regarding the Section 75 question and I'll post the response once they reply.

Paul_Herring

eltrot1979 wrote: »

I've emailed Egg regarding the Section 75 question and I'll post the response once they reply.

It'd be interesting to see if it's any different to the one I got off them (in the post linked above.)

Milarky

Paul_Herring wrote: »

What argument? There's nothing to 'argue' about.

Given the opportunity to answer a clearly worded question, Egg clearly didn't state that they'd offer Sec.75 and instead 'it would depend [on the circumstances].' Sec.75 doesn't have such conditions.

No they didn't exactly cover themselves in glory:

In your Secure Message dated 11 September 2008, you have asked if your Egg Money Card was in credit, would you still be covered under Section 75. I have today spoken to our Disputes Team who deals with these matters and they have confirmed it all depends on what you are claiming for and why. So I am sorry to inform you but I am unable to provide you with an exact answer to your question.

That may simply be because Section 75 applies applies only in specific circumstances anyway. The answer, you'll note, doesn't say that it depends on the fact that the account may have a credit balance - simply what the transaction itself relates to.

Furthermore, as quoted here it is stated that

(4) This section [Section 75 CCA 1974, '[I]Liability of creditor for breaches by supplier[/I]'] applies notwithstanding that the debtor, in entering into the transaction, exceeded the credit limit or otherwise contravened any term of the agreement.

Which, as I explained I thought meant that credit card companies cannot evade basic liability simply because someone has used a 'credit card' with a positive balance to pay for goods....

eltrot1979

Here's the response from Egg:

"You're still covered by the Consumer Credit Act on your Egg Money card if you are in a positive balance.

If you withdraw cash from a positive balance there would be no charge, as long as the withdrawal doesn't send you into a debit balance."