Egg Card Advice - (sorry - long!)

tryingtocutback

I received an email from Egg today as follows:-

At Egg we regularly review all of our customer interest rates taking into consideration the following factors:

• Our costs for providing credit in the current economic environment.
• Customers' credit profiles and how accounts have been managed since they were opened.

Following a recent review, we're making some changes to your Egg Card agreement, by increasing the interest rate you pay. Please read the information below to see how these changes affect you.

A summary of the changes effective from 14 April 2010
Your new APR is 19.9% (variable) (Condition 3).

The new standard variable annual interest rate for Purchases and Balance Transfers is 19.9% and for Cash Advances the standard variable annual interest rate is 25.9% (Condition 4.1).

This means that Condition 6, which gives an example for the total charge for credit, is changed to reflect your new purchase rate. This will now be £152.99.

The estimated interest shown on your next statement might not reflect the above changes to your rates, but will be reflected on future statements. To check what interest rates currently apply to you, log in to 'your accounts' at https://www.egg.com select 'view' next to your 'Egg Card' balance, followed by the 'Statements' option. Then choose 'more details about your account'.

You have a choice
If you do not wish to accept the increase to your interest rates, you can choose to cancel your card and pay off your balance at your current rates instead (in accordance with your card terms). You'll need to pay at least the minimum monthly repayment until the balance is repaid in full.

To take up this option, please contact us before 9 April 2010 by sending us a secure message, selecting 'Egg Card' from the product list and then 'Opt out' from the topic list menu confirming your decision.



Now, I really would like to take the option of keeping the current interest rate and not using the card. But, my problem is that I would have no credit card at all then (am currently unemployed so can't get one or switch to a 0% at the moment). I haven't used it for ages but I have it with me "just in case of emergency"!!!

So, do I take the plunge - tell them to cancel the card and pay it until it is all paid off?

I guess I know the answer really, its just a bit scarey not having a credit card at all!

Thanks in advance for taking the time to read this very long-winded thread!

apples24

id go for that option and go elsewere, or maybe they will sort something if they know your leaving

tryingtocutback

Thanks Apples - I didn't realise someone had posted the same thing before me (I should have looked!).

I have bitten the bullet and told them to cancel the card and I will continue to pay it off at my current rate.

I feel strangely liberated actually - sad or what!!!

Thanks for your message.

BILLIE

Going on line to look at mine and will let you know if I have a "letter" waiting to be read. Am working hard to get rid of mine, I pay over the minimum by about £40 a month had tried to make them a "FAF" payment but there weren't interested.

BILLIE

No I have no unread messages on the egg site.

DGJsaver

you gotta love the banks !

NJW69

I've had the 26.9% APR email as well today. I don't use the card and haven't ahd anything on it for a couple of years so i think it's a bit of a cheek.

Might close it as I have the others that I don't use.

tryingtocutback

you just know the "changes to your egg card agreement" are not going to be in your favour before you've even read them!

well, their loss cos Ive cancelled now!

andyl59

just had a personal email about hiking up my interest rate on the EGG card, i have opted out.
STUFF them and their card(now destroyed) BANKERS.........where is the law that stops us from being ripped off, intrest rates are.5% and they want over 21%....i will do without. no shopping . no spending.

BigCraigJohn

Had the same, sent a message straight off asking to cancel the account. Bit gutted really as Egg has by far the best online account, ah well operation pay off debts is on, no way I can spend any more here. And yes it does feel strangely liberating.

benf90

andyl59 wrote: »

where is the law that stops us from being ripped off, intrest rates are.5% and they want over 21%....i will do without. no shopping . no spending.

Where is it? It's the one that allows you to opt out - to pay off the balance at the existing rate whilst in return you're not allowed to borrow anymore on the account.

Don't take it as a personal insult. Credit is generally harder to acquire and more expensive than it was a couple of years ago.

You don't have to do without. You either use another card, or you save up beforehand instead of borrowing from a credit card.