Problems with Egg yet again !!!

ladypinkof66

I was one of the unfortunate people a while ago who was not using my Egg Card however I was rapidly clearly it fast - so Egg closed it down - allowing me to pay the balance off however no more spending at the time I was well peeved - as I really wanted to keep this card for emergencies.

Well I have been paying a regular sum of £150 off my card and this month my statement arrived online - to show I had a balance of £130.51 and payment was due by the 11th when my regular direct debit was due - as I did not wish to overpay on this card (I know they would have taken the full £150 as this happened a while ago on another card).

So I cancelled my direct debit with plenty of time and paid the balance of the Egg Card in full via a bank transfer - I then emailed Egg after the payment had cleared and showed a balance of nil (this payment was made on 6 Feb). And they have come back to me and said oh you have not paid the balance in full you still owe interest for this month - we cannot close your account until the interest is added and paid - we would therefore request you to call us and re set up your direct debit.

What interest would be due my Egg statement has always been via email and online - surely it works the same as a paper statement if you pay your balance in full by the payment date NO INTEREST SHOULD BE DUE - I am puzzled and annoyed as i was thinking finally i was getting rid of any involvement with Egg.

Please can anyone advise are they correct in saying more interest will be due - I know we are only talking about a couple of £'s however I feel if is the principle.

Many thanks

Sorry I forgot to add even though i cancelled the direct debit on the 11th they tried to claim the £150, added it to my egg card showing an overpayment and then took it back the same day. So I dont know what went on there but I shall be checking with my bank to ensure the payment has not been made.

Eydon

Egg are correct - it's called trailing interest. It gets discussed on here quite regularly.

Once you start paying interest on your balance (which you will have been since you've been paying off a set amount each month), then each time a statement is generated it will show you your balance on that date. Interest will be charged on that balance until the date the payment is received. So in your case you will be charged interest on the £130 from the statement date right up until your £130 payment hit your account.

You need to pay two full statement balances in a row in order to finally clear it.

EDIT: just thought, don't Egg also charge a fee if you don't pay by direct debit?

ladypinkof66

Eydon wrote: »

Egg are correct - it's called trailing interest. It gets discussed on here quite regularly.

Once you start paying interest on your balance (which you will have been since you've been paying off a set amount each month), then each time a statement is generated it will show you your balance on that date. Interest will be charged on that balance until the date the payment is received. So in your case you will be charged interest on the £130 from the statement date right up until your £130 payment hit your account.

You need to pay two full statement balances in a row in order to finally clear it.

EDIT: just thought, don't Egg also charge a fee if you don't pay by direct debit?

I have not had to pay a fee before with payment by debit card - the reason i cancelled the direct debit was because i did not want them to take the full £150 when the balance was less - thanks for your comments if when i get my next statement i pay in full will that be the end or can it in effect go on for several months ?

Paul_Herring

ladypinkof66 wrote: »

[...]this month my statement arrived online - to show I had a balance of £130.51 and payment was due by the 11th when my regular direct debit was due

[...]

What interest would be due my Egg statement

That £130.51 does not include interest between your statement date and the 11th (or whenever your payment was made, if earlier.)

You'd have been better off leaving your DD in place (especially since it's a requirement of holding an Egg card.)

The only time interest would not be due would be if you'd been paying the balance off monthly.

Eydon

ladypinkof66 wrote: »

I have not had to pay a fee before with payment by debit card - the reason i cancelled the direct debit was because i did not want them to take the full £150 when the balance was less - thanks for your comments if when i get my next statement i pay in full will that be the end or can it in effect go on for several months ?

Paying the balance in full on two consecutive statements will stop any further interest.