Card 0% balance transfer - WARNING they can charge you interest without a purchase!!!

dbartlett

Hi all

Now I don't consider myself stupid..but I now feel it! I took Egg up on their offer of 9 months 0% balance transfer in Jan 06, and purchases for 6 months. I paid a capped fee of £50 for the transfer and have as Martin has advised spent NOTHING on the card (else they will hammer you for interest)....or so I thought!

I got the statement through today, and there was interest charged to my account...HOW...i had bought nothing with the card!! I called Egg and it turns out that the balance transfer fee of £50 is classed as a "purchase" and they are now chargiing me interest on that £50 "purchase".

A warning to any other Egg customers and I would assume this applies to other credit cards as well? Martin should be made aware and make this clearer on the site. Further this was never made clear to me by Egg. It may be tucked away in the very small print I have not looked yet, but surely they should be telling customers its not 9 months 0% free balance free...its 6! Does this class as misleading????

Has anyojne else experienced this on other credit cards

happyformonths

I experienced this with Egg, and therefore checked when I did a BT with Virgin that they wouldn't do the same thing. "No," they said, "you pay off the balance transfer fee with the very next payment, so no interest is due". Very good.

I complained to Egg twice that I felt they had misled me by not making it clear *anywhere* that the BT fee would be treated as a purchase. Okay, it's only costing me £1.50 a month or something but it's the principle. (And actually I can't afford £1.50 a month as I am in debt...) They fobbed me off though, didn't really answer my question.

I do think it's sharp practice by them - after I move this current balance from Egg (October) I'm going to close the card.

HFM

giggs11

i did a BT with egg on 0% but i haven't been charged interest on the fee (yet!) and i've made 3mths minimum payments now or does this only kick in once the 0% for purchases ends?

schiff

I'm no expert on this but I've had plenty of experience on BTs.

As I have always understood it, the BT fee is taken out of the first monthly repayment - so it's effectively cleared off straight away. Usually covered in the T&Cs which you may find it useful to study again.

schiff