Eggs 5 Month 0% Fiddle

Thorrrr

Hi

Hi quick question to the gang of experts out there. I have had an Egg card for a couple of years. I only use it for SBT (Super Balance Transfers) and I never use it for anything else. I recently got offered the 5 months 0% deal so transferred all the money out £8000 to a high savings account. I set up minimum payment and I was due to pay back the full amount by the 31 Dec 2004 to avoid any interest payment.

I also got offered another credit card at a supermarket with 6 months at 0%. I used my Egg card as a SBT to move the money from this new card into my high interest saving account. Egg have charged me

12 Dec 2004 MERCHANDISE INTEREST AT 1.167 PER MONTH £26.70 DR
T/FER 4478.95 AT 0.000% INT PER MONTH £0.00 DR
T/FER 0.00 AT 1.167% INT PER MONTH £2.22 DR

A total of £28.92 I contacted them and they told me it because I used it to do a balance transfer. Is this right I have never been charged before to do a balance transfer? This seems grossly unfair I paid in £2900 then transferred it out into another account and they have charged me??????

bethyblue612

Are you sure you weren't using the card for purchases during your 0% period?
It looks to me like the £2.22 is two days worth of interest on a £2900 BT, which looks reasonable, but "Merchandise Interest" would seem to be interest on purchases.  If it was for your BT, that's almost another 24 days interest, which seems most unlikely.

*Edit* Sorry, just read your post again and you never use the card for anything other than BT's. See if you can get them to explain how they've calculated the £26.70, it seems way too high to me.

Unbelievable_2

The Egg anniversary offer is 0% for 5 months on BTs done within the anniversary month. It sounds like your most recent BT was outside the anniversary month so they have applied standard rates from the transaction date

Edit:And what bethyblue said about purchases!

Thorrrr

No my balance transfer finished on 31 Dec 2004

Unbelievable_2

Dale

I think what happened is: August is your anniversary date, you transferred up to your credit limit in that month and got 5 months at 0% on that transfer.

You should not then use your card for anything else until the 5 months is up (at the end of December) if you want to avoid paying interest. If you make a purchase your minimum payment goes towards paying the debt at the lowest rate of interest (ie. your 0% BT), and the whole of the purchase amount attracts interest at the standard rate. Not a fiddle, just a trap for the unwary

Thorrrr

Hi Unbelievable

I understood that part of the deal i have not made any purchases. I never take my Egg card out as mentioned the only thing i have done is use this card to do another balance transfer.

I put in £2900 and transffred it back out. I was under the impresssion i could do balance transfers at any time.

bethyblue612

You're right, you can do balance transfers at any time, BUT it is only during your actual anniversary month that you can do them at 0%, the rest of the time you pay interest from Day 1.

Luffer

Dale,

Would this explain it?

You transferred £8k from Egg in August into a bank account, you now have a debit balance of -£8k. with Egg

When you transferred £2900 to Egg from another card, Egg would accept this as a payment against the original £8k loan

Transfering a further £2900 in December would then be seen as a seperate transaction, Ie a balance transfer outside of the aniiversary month.

bethyblue612

You've sussed it Luffer.

I was wondering why there was only £4478.95 at 0% (in original post), it's the £8k, less 4 months of mininmum payments at 2%, going to £7378.95, then the £2900 was treated as a further repayment.

Thorrrr

That makes sense but why i originally got this card on the 9 months at 0% i did loads of BT with this card and i was never charged interest.???????

Unbelievable_2

Dale

did you ever do a BT outside of the 9 months 0% and not get charged? ???