We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Egg Card
auldain
Posts: 2 Newbie
Does anyone know if Egg Card agreed special arrangements with the OFT with regard to Late Payment, etc., charges permitting Egg to charge £16 rather than the £12 agreed to by most companies? I sent a claim to Egg for the refund of Late Payment charges (hoping for at least the refund of the difference between £16 and £12) but instead received the following reply,
" The OFT set a threshold for intervention of £12 (in its statement of April 2006) but stated that default fees should not be equivalent to the threshold.
The OFT stated that the presumption of unfairness in relation to charges of £12 would not apply where there were exceptional business factors. They therefore acknowledged that in those circumstances, a card issuer may be able to set a fair default charge above the £12 threshold.
The OFT, as an example, specifically referred to Egg's practice of requiring all customers to pay the minimum monthly payment by direct debit.
Following the conclusion of its investigation, the OFT indicated that it would not proceed further against Egg on the basis that Egg reduced its charges from the £20 to £16. Accordingly without any admission of liability as to the previous level of charges, Egg reduced its default charges to £16. The OFT has taken no further action against Egg."
Not sure what they mean in para 3 to justify their charge of £16 but I had agreed to pay by Direct Debit.
So are Egg correct or are pulling a fast one?
" The OFT set a threshold for intervention of £12 (in its statement of April 2006) but stated that default fees should not be equivalent to the threshold.
The OFT stated that the presumption of unfairness in relation to charges of £12 would not apply where there were exceptional business factors. They therefore acknowledged that in those circumstances, a card issuer may be able to set a fair default charge above the £12 threshold.
The OFT, as an example, specifically referred to Egg's practice of requiring all customers to pay the minimum monthly payment by direct debit.
Following the conclusion of its investigation, the OFT indicated that it would not proceed further against Egg on the basis that Egg reduced its charges from the £20 to £16. Accordingly without any admission of liability as to the previous level of charges, Egg reduced its default charges to £16. The OFT has taken no further action against Egg."
Not sure what they mean in para 3 to justify their charge of £16 but I had agreed to pay by Direct Debit.
So are Egg correct or are pulling a fast one?
0
Comments
-
-
what exactly do you mean natweststaffmember? you're answers are criptic!0
-
I think I was pretty clear. The OFT did state to Egg that they could charge £16 however if you take Egg to court then you can get them to prove that cost if they darewhat exactly do you mean natweststaffmember? you're answers are criptic!
0 -
:owell i didnt think you were very clear, but thanks for explaining to me. Doh.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604.1K Mortgages, Homes & Bills
- 178.5K Life & Family
- 261.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards