egg money scraps 4% interest from april 25th

Innocent_Guy

DesG wrote: »

My Egg money limit is 7000 and I know there a few on here that have higher.

But I assume they will have to now re-visit credit limits as their arguement about pre-loading doesn't apply any more.

I would be happier seeing them lift the £200 limit on annual cashback myself.

Cheers, Des.

What was their CL argument before?

CopperPlate_2

Innocent_Guy wrote: »

What was their CL argument before?

Their argument was that the Egg Money card was intended to be a hybrid card where cash was pre-paid each month onto the account and then spent throughout the remainder of the month. The credit balance would attract a credit interest of 4% and any spending on the card attracted 1% cash back. Their premise was that by giving low credit limits it would force card holders to use the card the way Egg intended (i.e. pre-load each month) and 'assist' in budgeting for the remainder of the month. Egg Money was sold as helping you budget as you knew how much cash you had on the card (a bit like a current account) and as you spent you saw the balance reduce. The 'credit' part of it was intended as just that - but they gave such small limits that it was really only possible to use it like a 'true' credit card by continually paying off the balance every so often through a month or at least a significant chunk of it OR do as Egg wanted us all to do and pre-load.

This latest change has well and truly killed off the initial idea of EM being a hybrid card. I wonder if Egg Money will still give the protection to those who might carry credit balances - I hear that 'normal' credit cards don't protect you if your card account is de-frauded and a positive balance is removed/spent. The concept of EM meant that it SHOULD have had a positive balance so in theory you were still covered if the victim of fraud. Not sure how that will work now, although unless using the SBT function there is no reason to have a positive balance on it.

HTH

Milarky

CopperPlate wrote: »

This latest change has well and truly killed off the initial idea of EM being a hybrid card. I wonder if Egg Money will still give the protection to those who might carry credit balances - I hear that 'normal' credit cards don't protect you if your card account is de-frauded and a positive balance is removed/spent. The concept of EM meant that it SHOULD have had a positive balance so in theory you were still covered if the victim of fraud. Not sure how that will work now, although unless using the SBT function there is no reason to have a positive balance on it.

Whether it 'works' or not depends on an interpretation of section 75 CCA, 1974 - not a) whether Egg Money allows a positive balance (or not) most of the time or b) the interest rate (or not) on the said balance.

As far as I can see Egg still allows for that form of 'budgeting' you describe as future positive balances will be allowed (albeit at nil interest)

I've posted elsewhere my reading of section 75 - which suggests to me that the existence of a 'debt' (i.e. negative balance) is not the test - it is whether the supplier has breached their agreement with you - simple as (see the 'Nothwithstanding' clause (4) and my comments on that). If credit card companies are not honouring claims on the basis of the balance (e.g. £50 after a £110 purchase) I'd like to hear examples..

[Deleted User]

CopperPlate wrote: »

I wonder if this is going to be re-launched to the general public again after the 15 May? Why go to the bother of re-branding it as a World MasterCard if they aren't intending keeping it alive for the future; and why go to the bother of introducing what appears to be some decent types of insurances? Just a thought.

Has anyone received a new World Mastercard branded card, eg on expiry of their old card, and if so does it look any different to the old egg money card?

Paul_Herring

I had a replacement for a lost card on 26th may - I don't recall it looking any different - I can check when I get home later, if I remember.

kempstar

Hello

Does anyone know where I can find a set of T&Cs online?

Thanks
Christian

kempstar

Sorry, specifically im looking for the details on purchase protection. I bought something with my Egg Money card that was subsequently lost. On the first page of this it says-

Purchase protection – buy items with your Egg Money card anywhere in the world and you're covered against theft, loss or damage for 90 days after purchase.

But I just spoke to the insurers, and they told me specifically that "loss" is not covered, and only means loss in the sense of theft or damage (??).

monomer

sofa_surfer wrote: »

it is black and has the letters w o r l d on a gray stripe

I almost laughed when I saw they changed the Egg Money card into a 'black' card.

I don't know if anyone's seen this old BBC article from many years back but should I now consider myself in the 'privileged elite'? :rotfl:

http://news.bbc.co.uk/1/hi/uk/2069758.stm

Paul_Herring

Egg are just joining the ranks of the likes of Virgin and Halifax who also offer black cards.

I'm just waiting for the first transparent one

CopperPlate_2

I though Blue Amex and Nectar Amex were semi transparent at one point..?