Egg Credit Card & PPI

Invaders

I only hope someone out there can help me on this problem. I am currently on long term sick and as I pay payment protection insurance on my Egg credit card. I have been claiming on this insurance since last July/August. However I have recently recieved a letter from Egg to say that my account was overdue. Having checked on this when ringing them I was informed that the insurance company who has been paying my monthly payments had not done so in June and now July. I immediatley rang them up to be informed that they had made the final payment as they were given a figure from Egg last July/August of the amount I owed. The insurance company say that they have paid this amount and therefore the payment that was made in May was the final payment as they have cleared the account. So they told me to contact Egg and give them this information. This I have done but Egg insist there is still an outstanding amount which relates to interest on the figure that they gave the insurance company last July/August. On the terms and conditions of the PPI it states that 10% of the outstanding balance will be paid each month at the time the claim commences, until an amount equal to the outstanding balance has been paid. I have not used the credit card during my period of sickness so there are no new transactions. However I am being passed around from Egg as they say there is still an amount outstanding to pay and the insurance company are saying they have paid all the amount that they were given by Egg last July/August.
I am at my tethers end now as I cannot pay due to still being on long term sick yet I am being told I should. How come when I have PPI and the terms and conditions say it will be paid until the balance is clear. Egg are saying that they will put on late payments fees etc if I do not pay. Please could anyone possibly give me some advice as what to do next.!!!!!!!
Thank you

CannyJock

Reading the post, the T&C's of the payment protection insurance say that they pay 10% of the balance at the time of the claim, up to the maximum of the balance. So they'll make 10 payments of 10% of the balance at the time they're notified.

They won't cover the interest that'll be added by the card provider, the amount they will repay is limited.

If you were expecting it to clear the card in full plus interest then sorry to say that I think you're in for a disappointment.

Your options are to continue making the minimum repayments, or to clear the card possibly by transferring to another card if that was an option for you.

Invaders

Thank Canny Jock. There is nothing stated in the T & C to say they do not pay the interest and it does say that they will pay until the balance is clear. How can that be stated if there is still an amount outstanding!!

CannyJock

Invaders wrote: »

Thank Canny Jock. There is nothing stated in the T & C to say they do not pay the interest and it does say that they will pay until the balance is clear. How can that be stated if there is still an amount outstanding!!

Need to be clear on what the balance represents:

10% of the outstanding balance will be paid each month at the time the claim commences, until an amount equal to the outstanding balance has been paid

From my reading of this, the balance is the balance on the card at the time of the claim. That's the amount that Egg notified them of and that's the amount they've now paid in 10 installments.

Presumably this is to ensure that they're not liable for any additional spending on the card.

But it does still leave you liable for the interest that continues to accrue on the balance even though you haven't spent any more on it.

Even if the insurance company had paid 100% of the outstanding balance there would still have been residual interest on the card that you would have been liable for (although much less than the amount now).