Are Egg being fair by applying interest to balance transfer fees??

moni72

Has anyone heard of the following treatment re balance transfers?

I took out an Egg card for 0% on balance transfers till 1st Oct 2006 and 0% on purchases till 1st Jul 06. I only made one balance transfer and have made no purchases on the card.

I was therefore surprised to see interest being applied from last month.

When I asked Egg about it, first I got a stupid email back saying "you are being charged interest for purchases made to your account" despite the fact that I told them (and they could see from my account) that I had made no purchases, that's why I asked the question in the first place. Doh!!!!

So I emailed back saying "I'm sorry you're so thick but..." Only joking, I was polite and explained that this didn't answer my query, and I asked again.

I got the following response:
Dear Duncan

Your 0% offer for purchases expired on 1st July 2006. As your balance transfer fees are applied to your Egg Card as charges they don't come under the 0% balance transfer offer. They come under the 0% purchases offer.

This is why you're being charged interest at our typical variable rate, currently 15.9% APR. I can confirm these charges are correct.

For full details of how interest is calculated and added to your Egg Card, please copy the link below into your web address bar:

new.egg.com/visitor/0,2388,3_11084--View_152-bID_EC rates and charges faq-dva_1,00.html

Your 0% offer for balance transfers will finish on 1st October 2006. After this date all balance transfers and purchases will revert to our typical variable rate, currently 15.9% APR.

Thanks for your message.

Regards

Chris Westwood
Internet Customer Services


Martin or somebody, is that fair? Can they really charge interest on the balance transfer fee??? I've never heard of any other provider doing this.

Cara79

Hi there

Yes, I have heard of this, but I think you could argue it. Check your T&C's to confirm if it mentions anything in there.

This hasn't happened to me, but it will certainly be interesting to find out if you can get it rectified.

x

Money_Saver

Hiya,

I recently received an offer from Halifax offering me 0% for 5 months int free, I asked if this included the 2% bt fee, and they agreed no int on the fee either, so I went ahead.

Check the T&C of the offer, and double check on the phone when you do the bt.

HTH

MS