Egg - scandalous interest rate increase

Sonalita

Hi, I'm outraged!!!

Outraged enough to finally join this forum and vent my anger as well as seek some advice.

Egg sent me a mail yesterday stating that from next month my intrest rate is increasing from 19.9% to a SCANDOLOUS 26.9%

I have quite a high balance (long story, don't criticise!) so this just seems to me to be them being very greedy and grabbing money from high balance customers who are perhaps not in a position to do very much about it.

I've asked them if this is negotiable, and am waiting a reply. They also say I can "suspend" my account as long as I continue to make at least minimum payments - is this a good idea?

I'm also looking at shifting to some of the introductry 0% or low% cards (using the articles on this site for a guide) - got a pending application for the barclaycard platinum with 1st 5k at 0% interest - but if that avenue fails, what should I do?

My balance is £14k, I earn over 30k salary and have once exceeded my limit in feb this year so I don't know how good my rating is.

ILW

Have they offered to let you stay on the old interest rate if you stop using the card?

INT1

Doesn't matter if you exceed your credit limit providing you bought it back under and did not miss a months payment.

This is a common trend for card issuers to increase the rates but some are offering to keep the existing rate until you pay the balance off (Capital One did this with me)

Best off transferring to lower rate for 9/12 months although you may get charged a BT fee of around £250 to do this.

Sonalita

Yes ILW they have done that, but I think that is a legal requirement now?

I'll look around and see what's on offer - but will freezing the card affect my credit rating should I decide to do that? One thing's for sure, one way or another I'm not gonna pay 27% APR. That's just ridiculous.

ILW

Freezing your card will not affect your credit file. It will just show that you are paying as normal.

97trophy

Sonalita wrote: »

Hi, I'm outraged...........a SCANDOLOUS 26.9%
I have quite a high balance

Nothing scandolous there, 26.9% for a above average risk CC is usual. Many folks have seen their APR's rise to the mid to high 30%.

scared999

they've done it to me too.

Can someone confirm if i can stay on the old rate and return the card to them, and gradually pay the card off?
thanks

nzseries1

Sonalita wrote: »

Egg sent me a mail yesterday stating that from next month my intrest rate is increasing from 19.9% to a SCANDOLOUS 26.9%

I'm surprised that Egg actually used the word scandolous in a mail!

vet8

They sent me the same e-mail. I think they are doing a lot if it, trying to increase their profits. As I understand you can stop using the card and ask to stay at the old rate until you pay it off, but if you miss a payment I think they can ask for the lot back in one go.

MerseyLad

Hi mate,

I started a thread yesterday on the same thing!!!!
http://forums.moneysavingexpert.com/showthread.html?t=1918757

I emailed them and told them of my disgust - to be fair, I got a non-standard reply, but i was all still rubbish.

Mine has gone to 22.9% from 17.9%. This is 2 months after MBNA did similar but to 29.9%.

My issue is that I have no other cards to balance transfer to, and I had an Abbey application declined last month and its kinda scared me to apply for others.
I owe a fair amount, but I have never missed a payment or been late in my life. I dont credit card hop, and im loyal - its just really got to me all this rubbish.

I am just frustrated with the banking world mate - and Im sorry if I came across as a ranting idiot. I just feel like in the glory years of lending - financial institutions were happy to throw credit at people [daft people like me] who were happy to spend, spend, spend - now with the financial crisis we find ourselves in a real akward position of high debts, no one will to give credit to help and most places starting to find a way to make money out of this by increasing APR's and blaming in on credit reference scoring. I know my circumstances have not gotten worse since those "credit happy days" - in fact, I earn more, owe less, and have never missed or had a single late payment with anyone. Yet, I am told now that I am not as "worthy a customer" as someone who is paying larger chunks off a balance, or in full each month.....its like a complete opposite of the situation that allowed me to get myself where I am today - and like financial institutions are happy now to wash their hands of people like me, and just watch the money roll in as people struggle to pay to keep up. I want to pay my debts off honestly, and without causing problems for me or anyone - but im finding im being backed into a corner somewhat - and its just sad

lisyloo

financial institutions were happy to throw credit at people

I don't believe they held a gun to anyone's head.
You knowingly entered into variable rate lending.
You could have saved up before you bought stuff.
I always save up before I buy stuff which sometimes means waiting.
I've never had these type of problems because I don't enter into these kind of agreements that expose me to this kind of risk.
You knowing got into it and exposed yourself to this risk.
Stop blaming the rest of the world.
Get a Saturday/Sunday/evening job(s) to pay it off - clean, deliver papers if necessary and save up front for things you want.