Egg card interest 26.9%!!!

getrichquick_2

Hi, it is Egg that motivated me to join tonight (this is my first post.....why do I feel so nervous?) I got the same email putting my interest rate up to 29.9%!!! I immediately sent them the opt out email and canceled my card. In a strange way it felt quite good.....first steps and all that. There is a load of other waffle about total charge for credit, which after 1/2 hour of Googling I'm still no nearer to understanding. Is anyone else who who had the same email able to explain it to me?
Thank you :-)

cash-magnet

That total charge for credit figure they are talking about refers to a paragraph shown in your agreement with them as an example of how much would be payable. As it is a figure in print, they must show the new figure as they are ammending your written agreement with them. It's only an example figure so don't worry too much about it.

eg: old paragraph (rough example only)
interest payable on balance of £100 = £10 interest payable

but under new increased APR of 29%, the example would be wrong
so they have to give you the new figure as it should now read under your new ammended agreement with them...

interest payable on balance of £100 = £29 interest payable

Hope that helps you a little more.

Fruit_and_Nut_Case

I've just had two of these e-mails; one for my Egg Card and one for my Egg Money Card.

• Egg Card, limit £14000, interest changed from 16.9% to 21.9%
• Egg Money, limit £6000, interest changed from 16.9% to 21.9%

If enough people post here we may be able to work out Egg's logic. Thank you Citi.
I pay off my Egg Money Card in full each month so APR is irrelevant. I'll keep it for the cashback.
I see absolutely no point in keeping the Egg Card active.

hermum

I've done my opt out email after them upping mine to 26.9%. Does that automatically cancel my card or do I have to do anything else? I have asked them where I have to send the card?

flyingscotno1

So Citi have got back round to Egg after doing the works on removing benefits, credit limits and interest rates for all its Shell etc customers.

alexaramos

The sad thing is people will actually use that card.

Intransigent_2

alexaramos wrote: »

The sad thing is people will actually use that card.

Indeed - I was in deep financial doo-doo, two years ago, and used my egg card to prop things up, as I had no other option.

Having sailed close (within £500) to my £12k limit, egg very kindly upped it, without me asking to £14.5k...And jacked my interest by 5% a few months later...(!)

Responsible lending, or profit maximisation?

(Thank goodness my balance is now a quarter of what it was...And will be zero within the next fortnight... )

INT1

It's the funny strategies that are adopted for risk based pricing.

Some of the places where you use your card are high risk, for example if you pay your council tax, car tax general bills on the card, you can be classed as living off the card.

This can flag up your account to be reviewed and have APR increased/decreased.
I don't understand why they target full balance payers though? Maybe it's a case of them wanting you to forget to pay one month and slapping a load of interest on, or maybe they don't like full payers and trying to pi$$ them off so they go elsewhere!

phildamb

I don't think responsible lending is anything to do with it. They are pushing away people who are paying their balance and they are making money off so for me it sounds like taking a risk on profiteering.

fozmcfc

Mine is also 21.9% the largest of my credit cards. I did a balance transfer to clear it and then I reduced my £4000 limit down to £500, just to keep hold of the card for an emergency.

The only good thing with Egg for me, was that when I wanted a loan, as they said they held all my information, they basically gave me an instant decision, without me having to filling in loads of details about home/work etc etc.

My loan will be over with them in December and then it's my intention to quit them altogether as they have always been my most expensive line of credit.