Egg card interest 26.9%!!!

immoral_angeluk

Got to keep the shareholders happy haven't they...

They upped mine from 18.9 to 23.9 a while back. My barclaycard is still 18.9 oddly enough but with 0 balance. Slowly paying my egg off too but unsure which one to keep as barclaycard's customer service is shocking.

Lisa1972_2

I recieved the same letter from egg increasing my interest rate i did what everyone should do. I promptly phoned them and cancelled my card the women on the other end of the phone said sorry to hear you are leaving us. I could not help but laugh :rotfl:

Lisa1972_2

then last week i recieved a letter from barclaycard saying they had dropped my purchase interest rate to 9.9% so :T WELL DONE Barclays.

NinaBlay28

hmmm very interesting

phildamb

This was my initial reply to their message:-

I would like to know why my interest rate is now going upto 26.9 when a new customer gets 10 less! As a company do
you not value any of your present customers enough! I could understand a small difference in the APR as an introduction
but the 10 difference means you are now only 3 less than a store card! This is disgraceful and I would like to know how you
can justify it as "the present economic climate" is nothing more than an excuse if you can afford to give 16 to new customers
their is no reason why you cant for loyal customers that you are making money from!

They then gave a template response about the current climate and the way they borrow money having changed..to which I replied:-

So basically your reply to any loyal customer base is the middle finger that you are allowed to change the rate by however much you want when you want to!? Do Egg as a company have no idea how to maintain a loyal customer base? The economic climate is not a reason to rip me off so you can offer lower rates to newer more risky customers! Despite the fact that I have 2 savings accounts with you Im not considered to be a good enough customer to not have my interest rate held meaning I will now need to pay less into my savings accounts so I can pay off the credit card faster which means you lose money on both the interest on the card and the investment money from my savings accounts. Well done!

They then sent this:-

I'm sorry to hear that you feel this way. I can assure you that we do value all our customers especially our existing customers.
This was also in with a template response about cancelling the card and such.

My final response to them was :-

I wish to cancel the card and continue paying off the remaining balance at the present rate. I am doing this as I have no choice,
please let your records show that I am severely dissatisfied with your service and the way you have chosen to treat
your customers. Your responses have been as template as they can be with no actual response or justification for this
modern highway robbery. I will eventually be removing all services from Egg including my savings accounts.

Regards

They have now confirmed that the card is cancelled and the interest rate held. I've signed up for a new savings account elsewhere so will be closing my savings with them by the beginning of next week. If I could have put some phecies in an envelope and posted it to them along with a complaints letter I would.

SimbaSimon

They are just trying to get rid of higher risk people (Note higher risk, not necessary high risk)

They are also lowering the limit for others, I've had an email this morning taking mine from 19.9% to 17.9% (still too high in my opinion!). So I see this as raising APR where business is more risky and lowering it where it isn't (I rarely use my card although have occasionally had a balance on it and paid a little interest.

Intransigent_2

SimbaK2K wrote: »

They are just trying to get rid of higher risk people (Note higher risk, not necessary high risk)

Indeed - Although what confuses me, is that they've decided they want rid of me, when my balance is the lowest it's been in 4 or 5 years. (But still high enough to cream £80 in interest from me, PCM).

I'm sure I'm not alone??

I can just imagine their in-house credit scoring system:

/Recompute customer interest APR

/Run

Length a/c held: 11 years
Late Payments: 0
Missed Payments: 0
% of Available Credit Used: 25%

Result = Charge 29.9%, or the same as a store card... Let's get rid of the b*gger... :rotfl:

(I'm sure there's a little more to it than that, and I'm looking forward to a more 'in depth' explanation from egg, as to how they arrive at their figures...Maybe it's in the tea leaves, or to do with astral alignment or something... )

CannyJock

phildamb wrote: »

If I could have put some phecies in an envelope and posted it to them along with a complaints letter I would.

I always think if you're going to send something obscene through the post, it should be accompanied by a properly addressed complaint letter.

If you weren't so busy trying to work out ways to squat over a DL window envelope, you'd maybe think about using your savings to clear the card balance so any APR increase is irrelevant? If you always clear the balance in full anyway then it's even more of an irrelevance.

If you wanted to be uber clever, you could always apply for a new card with another provider to take advantage of their introductory rates for new customers. Even a rudimentary browse at other providers will reveal that most of them are offering special incentives to attract new customers - something to do with marketing and market share ...

For the record, I've been with Egg for years, my current rate shows as "12.9% standard annual variable rate for Purchases and Transferred Balances".

phildamb

CannyJock wrote: »

I always think if you're going to send something obscene through the post, it should be accompanied by a properly addressed complaint letter.

If you weren't so busy trying to work out ways to squat over a DL window envelope, you'd maybe think about using your savings to clear the card balance so any APR increase is irrelevant? If you always clear the balance in full anyway then it's even more of an irrelevance.

If you wanted to be uber clever, you could always apply for a new card with another provider to take advantage of their introductory rates for new customers. Even a rudimentary browse at other providers will reveal that most of them are offering special incentives to attract new customers - something to do with marketing and market share ...

For the record, I've been with Egg for years, my current rate shows as "12.9% standard annual variable rate for Purchases and Transferred Balances".

None of the suggestions are an option at the moment as we are about to get a mortgage so I dont want any credit searches on my account and the money in the savings may be needed for fees so again using that to pay off the balance sooner isnt an option and still wouldnt change their mind about the interest rate. Ive also been with egg for years (4 or more) but this doesnt seem to make any difference and from the postings here their is no real pattern about how they are choosing to who rob and who not to rob.

Fruit_and_Nut_Case

Sorry to resurrect an old thread but I've just had an e-mail from Egg asking me to complete a Customer Experience Survey. I particularly mentioned the silly interest rate increases experienced by myself and many others. Did anyone else get this survey to do?