Egg - scandalous interest rate increase

ILW

MerseyLad wrote: »

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

Could you not have stayed on the previous rate if you agreed to stop using the card?

gpvisual

Sonalita wrote: »

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.

Wow I thought I had it bad when they jumped me from 16.9 to 17.9%. I have spent about £3k of a £5k limit and never been anywhere near my limit. Why I am suddenly a risk that demands further payments I cant explain. As long as we all remember what these companies are doing to us during these hard times so that we can vote with our feet when things ease up.

MerseyLad

lisyloo wrote: »

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.

I knew my reply could prompt a reply like this.

I kow I wasnt FORCED into borrowing and going into debt. It was my own stupid fault and naivety with money at a much younger age. Im not trying to apportion blame solely on financial institutes. Im just trying to make a point that these companies that were happy to "auto increase" credit limits in bygone years to people who they had no real control over or knoweldge of their loose manner with money, was in my opinion, a poor service.

At the end the day, I took what was given and spent it knowing I would ultimately end up having to pay it back. I did not expect to have to do it in a market that we find ourselves in today. My bad.

However, I thought this was an advice and help site for people to do with money and therefore problems and concerns. Your hollier than thou attitude on it doesn't tend to make for great discussion.

frugallass

well said Merseylad :T

I also received the 'we are increasing your interest rates' email this morning - mine has increased to 29.9% - I am not over my limit (but am very close to it) but I have hardly used the card in the last 12 months, I haven't missed any payments but did once go over the limit.

I was refused a card by Virgin and am reluctant to try elsewhere so I am stuck with the increase. I'm just going to try and pay extra each month to get the balance down as quickly as I can.

dixiechic

Just got home and found an e-mail from Egg telling me that my interest rate has risen to 21.9% from 17.9%. Have about £1k on it which I will get rid of as soon as poss, no missed payments and long history of full payments so I was relieved to get on the forum to see that I was not the only one being shafted. I though it may have been because they had to do a £2000 section 75 refund for me recently.

No holier than thou attitude from me - sometimes needs must and we all have different reasons for accessing credit. There, but for the grace of God and all that......

frugallass

is it possible to close the account, send the cards back and just pay the balance off at the current interest rate?

YorkshireBoy

frugallass wrote: »

I haven't missed any payments but did once go over the limit.

Exceeding your limit is viewed far more seriously than paying late/not at all one month.

This single instance (perhaps accompanied by you nudging the limit continuously, ie 2% minimum payment barely covering circa 2% interest per month) is what has moved you up the 'risk ladder'.

They now perceive their capital to be at risk, so are trying to recover monies via revenue instead.

ILW

frugallass wrote: »

is it possible to close the account, send the cards back and just pay the balance off at the current interest rate?

I believe that they have to offer that option by law, so am a little confused about what people are complaining about.

YorkshireBoy

frugallass wrote: »

is it possible to close the account, send the cards back and just pay the balance off at the current interest rate?

Doesn't the communication offer that alternative? It should do (by Law now?)

jon-jo

MerseyLad wrote: »

I knew my reply could prompt a reply like this.

However, I thought this was an advice and help site for people to do with money and therefore problems and concerns. Your hollier than thou attitude on it doesn't tend to make for great discussion.

hear hear, I agree totally.

Regarding your CC, I'd switch it to a 0% card asap.