Egg Anniversary - they want to charge me!

louise1234_2

Hi,

I used to use my Egg card for purchases, but as Jan is my Annivesary month I have paid off all my purchases & SBT my limit out the day after.

Now I have received a statement, giving estimated interest of £2.23 ..... Querying this with Egg, they said it was for purchases. I've emailled back to ask which ones..

I am sure I did it correctly, I paid off full balance & waited until Balance on Egg site was £0, then did SBT. I have checked Egg site, and no more purchases have been added.

Have I done something wrong?? Or is Egg's estimated interest wrong??

All opinions & thoughts welcome.

sly_dog_jonah

In my experience, clearing the balance prior to a 0% SBT should mean they don't charge you purchase interest. I did it back in March no problems (payment of balance clearer on 2nd, SBT on 3rd, statement on 17th: no interest). I've just done it again in the past few days so will await my statement with baited breath. I think it would require a change to egg's T&C's to alter the calculation of interest charges, so will use that as a defence if they charge me.

From my Egg card T&C's (pre Oct 2001 application)

5.2 We will charge interest on all amounts making up the Balance on a daily basis at the relevant rate set out in condition 4 from the date each Transaction and Charge was put on the Account. Interest will be charged until the Balance has been repaid in full. We will not, however, charge interest on Purchases listed in your last statement, if you pay the Statement Total on or before the Payment Date.

In my interpretation then, having a 0.00 balance on the day of a BT means I won't get charged interest on purchases that i've paid off.

EDIT:- I think the only exception to this would be if you had not paid off the full amount of the balance in the previous month. Therefore you would have a 'revolving balance' and the interest would be from previous purchases.

Derek_Duval

The safest thing to do is get an egg blue card, always use that for purchases (the cashback is 0.5% compared to green at 0.1%), & leave the egg green for BT's.

MarkyMarkD

If you were liable for interest on the purchases, clearing their balance isn't sufficient to prevent future interest accruing.

If they were in the 56 day interest free period, and you paid them off in full before making the BT, you shouldn't be charged.

The same applies if you had a low rate BT in progress before the anniversary month - like I did - and thought you'd cleared it before making the anniversary BT.

The correct advice, previously offered on this board, is to get a nil STATEMENT before making the anniversary BT, not just to clear the balance online. This applies unless you are not incurring interest in any case.

louise1234_2

I always pay it off, so the purchases were in interest free period.

Will see what answer I get from Egg when they acutally llok at it, rather than give 'standard' answer.

monki_man

I got this email this morning

Dear blah blah

Thank you for recently applying for an Egg Card.

We’re aware that you’ve used your new card to make balance transfers to your account. Unfortunately an error has occurred, and as a result, interest has been charged on these transfers.

The error has now been corrected and any further transfers you make will be at your correct introductory offer rate of 0% until 1 September 2005 and then at 14.9% pa (variable). In addition to this any interest charged in error has been removed from your account.

You’ll be able to see this correction on your next Egg Card statement. It will show the balance transfer being removed from your account and then reapplied at the correct rate of 0%.

did anyone else get this?

louise1234_2

Got another messgage from Egg - saying it is only 'estimated' and implying they think I might make purchases?? I think she didn't know the reason & made one up!! |

But they did say I shouldn't be charged interest and if I am they will refund.

Me thinks Egg have a problem with interest calculation system, judging by other posts who have been charged when they shouldn't have been!!