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Egg 3.9% balance transfer actually 9.9%!

Egg have today emailed out an offer of 3.9% balance transfers until 1st Nov (approx 5 months), however there is a transfer fee of 2.5% which is uncapped!

I figure this therefore actually equates to an APR equivalent of nearer 10%!?

Is this legal? Are credit card companies allowed to quote rates without an equivalent APR?

Cheers

Comments

  • Rafter
    Rafter Posts: 3,850 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I believe the APR will be whatever the standard purchase APR is for your card. Card companies aren't allowed to calculate an APR including any sort of deal or balance transfer offer - just the ongoing standard purchase rate plus any mandatory account charges.

    So what egg is doing is certainly legal - although sneaky - particularly if this offer comes just before someones much better anniversary offer.

    R.
    Smile :), it makes people wonder what you have been up to.
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