Egg Money Rate Increase to 16.9%

CopperPlate_2

As an aside - but perhaps timely given the way this discussion is going regarding the Egg brand - it appears as if Egg Emergency Cover (effectively Card Protection Plan in case of lost cards, etc) has been pulled. Up until this month I had it and cancelled it after the year was up, but when I went to the site to get contact details to call, all information relating to signing up to it was gone.

Mortgages were pulled a while ago now. Egg Investments refer you now to the Citi Investments pages, etc.

Does make you think that Citi are doing to Egg what Santander has done to Cahoot when it took over Abbey.

sparkey1

This is really annoying finding out that some were being charged less than 10% APR. I thought I was on a good rate!. Be aware that before you close your accounts in disgust you might be due some cashback and will lose it. Check whether it is worth not paying the balance off until you get the cashback.

Make sure you complain, but please dont take it out of the call centre staff. When I complained the advisor told me that they (Egg), had raised her rate, as did MBNA and Capital One, so to be honest I thought she was worse off than me!

Personally I think they are banking on apathy. Most people won't do anything and they will still earn revenue from those still spending on the card.

However if we all took the opt out, and allowed them to cancel the cards and pay off the balances, they are going to lose an enormous amount of revenue from both the card transactions and the interest. So there is some payback potential if you go for the opt out.

If you have a large debt and are concerned that you will be forced to repay the debt quickly bear in mind that they they have to give you a reasonable time period to allow you to pay off the debt. It would be reasonable for you to continue paying anything from the minimum amount to the full balance. Just make sure you pay the minimum off each month or they could demand full repayment etc. On this basis you could still be paying in five years, but at least your interest rate will be capped. They may even invite you to be unsuspended and offer you a better deal in a few months if they lose too much money.

If you are going to opt out, (and why would you want to accept a higher rate), don't waste time in contacting them via the website. The last thing you want to do is miss the deadline and find that you are having to pay around 5% more in interest.

nick88

My rate is still at 7.9%... and being a poor student, I'm not quite sure why it's so low (I've got 19.9% from Barclaycard?) They didn't send me an email about the rate increase the last time, or this time, but I only have a £500 credit limit, which might be why? I'm making the most of the 4% credit interest while it's still there though, no news on that

financial_warrior

sparkey1 wrote: »

This is really annoying finding out that some were being charged less than 10% APR. I thought I was on a good rate!. Be aware that before you close your accounts in disgust you might be due some cashback and will lose it. Check whether it is worth not paying the balance off until you get the cashback.

We've already covered this off on the 2 pages before this one... Most people will get their cashback, provided they don't completely close their account before it's paid.

Make sure you complain, but please dont take it out of the call centre staff. When I complained the advisor told me that they (Egg), had raised her rate, as did MBNA and Capital One, so to be honest I thought she was worse off than me!

Pretty much all Egg employees have been affected by the increase too. I heard about it first through my mates there.

Personally I think they are banking on apathy. Most people won't do anything and they will still earn revenue from those still spending on the card.

Don't bet on it. This year is going to be incredibly tough, and many people will be priced out of the credit card market.

However if we all took the opt out, and allowed them to cancel the cards and pay off the balances, they are going to lose an enormous amount of revenue from both the card transactions and the interest. So there is some payback potential if you go for the opt out.

In actual fact, that's what they want you to do!! Most people using Egg Money are costing them more in servicing and transaction costs than they actually make back in interest. You'll be doing them the biggest disservice by spending loads of little transactions on your card each month, and then paying in full :rotfl:

They may even invite you to be unsuspended and offer you a better deal in a few months if they lose too much money.

Please don't expect this to happen any time soon. Egg want shot of this product, and most of the customers on it.

If you are going to opt out, (and why would you want to accept a higher rate), don't waste time in contacting them via the website. The last thing you want to do is miss the deadline and find that you are having to pay around 5% more in interest.

The date you send a secure message is the date by which they have to act upon your wishes. If it takes them 5 days to respond that's not for you to worry about. Any excess charges would have to be refunded and back-dated.

financial_warrior

nick88 wrote: »

My rate is still at 7.9%... and being a poor student, I'm not quite sure why it's so low (I've got 19.9% from Barclaycard?) They didn't send me an email about the rate increase the last time, or this time, but I only have a £500 credit limit, which might be why? I'm making the most of the 4% credit interest while it's still there though, no news on that

Have you had the account for longer than a year?

eira

Just had a letter from Citi Cards telling me the interest rate is going up to 23.9%-this is way more than the Egg cards I have. So have just sent an e-mail cancelling the card.Never did get to the bottom of wehat card I had anyway.It was one of the first that Citi issued to people with 'bad credit' and then pulled.it doesn't seem to exist anymore (Actually it wasn't a Citi card initially-they took the card over) terrible customer service anyway

purpleparrotuk

I never got an email and my interest went up to 26.9% last month!

Where do I stand because I never got the option to opt out.

Thanks

SarahNeedle1872

Have a standard green Egg card, int rate has just gone up to 19.9% I think. 5p positive balance on it earning nothing!
I'll be keeping the card because it allows me to BT into my current acc, and because of the anniversary offer. If they pull that, I will still keep it for the SBT. I guess for those of you that pay in full each month, it makes little difference, as long as you guys still get your cashback - I wonder how long it will be til they decrease/pull that altogether?

Sx

I do love the apparent attitude from Egg of 'if you don't like it, leave'.... the problem being that it is becoming increasingly difficult to get credit, even with a good credit score.

KTM_Gordo

eira wrote: »

(Actually it wasn't a Citi card initially-they took the card over) terrible customer service anyway

It's a close thing as to who's worse: Citi/Egg or American Express, who are truly inept:

Nuisance phone calls, which they denied, changes to my Ts&Cs without bothering to tell me, two months to acknowledge a complaint, wrong information (dismissed as "close enough")...

Is there a credit card company out there that offers decent customer service? Or even half-reasonable customer service?

:mad:

clio

KTM
Tesco are decent matey..