My increase on my egg card is to go up by six per cent.

maffew_2

billion25 wrote:

If you don't like the product, pay it off and move on. If you can't pay it off, then you are higher risk and should be priced higher.

<edited cant be bothered>

MascaraMinx

Having just read this thread, I have called Egg to ask whether mine has gone up. They said no, it remains at 15.9%. So I ask why some people's have gone up and others haven't. She says it's where there is a history of missed payment or bad account management. She then said that is what Customer Services have been told to tell customers, and if you are a person who is affected by it they will put you through to the borrowing team who will tell you the exact reasons for it.

Interestingly enough, I also have a loan with them - wonder if this makes a difference? We'll soon see as my husband has a card but no loan.

Don't think this helps much but thought I'd let you know what I was told.

Booby's_Place

Murray wrote:

Good business sense for Egg maybe, but what about the people who are affected by the interest rate hike? This site is about money saving and consumer revenge not supporting the big corporations!

Whilst I appreciate, and wholeheartedly support the purposes of this site, and agree with the motives, I think it is healthy to get a balanced view. As I stated in my original post, Egg made a loss of £39m in the first half of 2006, I hardly think that qualifies them as a "big corporation"!

Everyone knows that consumer borrowing in the UK is at a dangerous level. I would have thought that making borrowing less attractive, and based on profile would fit with the aim of reducing consumer indebtedness?

mr-mac_3

Booby's_Place wrote:

Whilst I appreciate, and wholeheartedly support the purposes of this site, and agree with the motives, I think it is healthy to get a balanced view. As I stated in my original post, Egg made a loss of £39m in the first half of 2006, I hardly think that qualifies them as a "big corporation"!

Everyone knows that consumer borrowing in the UK is at a dangerous level. I would have thought that making borrowing less attractive, and based on profile would fit with the aim of reducing consumer indebtedness?

Yeah so make it less attractive so people don't take out more.... don't hammer the poor people who already have it, surely this is counter productive ( I gaurentee egg will recover less if they force more peope into default and I think this will do it)....

Also re the missed payment reason for this I have never missed a payment on this account ever.

My last over limit fee was over a year and a half ago and was only caused by eggs intrest being applied a few days before your payment is taken.... Ok so I may be only paying minimum payment at this moment in time but I certainly am not missing payments or going over limit....

John

steve!_10

They haven't touched my rate (yet?), and I've got Green, Blue and a loan (I always pay off in full). I don't care if they up my rate, to be honest. Whatever floats their boat.

dealseeker

Booby's_Place wrote:

Prudential reports a loss of £39m for the first half of 2006 from Egg itself.

Egg is no longer listed on the stock market, is not looking for a buyer etc. Prudential bought the listed shares back some time ago. So there would appear to be no ulterior motive of "making itself look more attractive to potential buyers".

Prudential tried and failed to sell egg for previous 2 years but they couldn't find a buyer for egg. Since its creation egg has only fleetingly made a profit. Built up large losses every quarter until recently and then they only just broke even. Has also had a disaster and massive losses with the set up and withdrawal from the French credit card market. Thats partly why Prudential's previous Prudential CEO was ousted ..."with egg on his face".

Prudential already owned virtually all of egg anyway. As they couldn't get rid of it they decided to bring the "hot potato" in house to try and save face dressing this up as a "change in strategy". Now they are possibly trying to attract a suitor to come along they are looking at getting all the losses and right-offs out of the way to clean up the balance sheet making them attractive for a fresh bid.

egg started off with high paying savings account. Looking for good quality customers etc. Have since diversified into a credit card company with a few savings products. Sold off their online fund dealing facility etc.

They have obviously not been credit scorng appropriately in the past to allow "risk " of default by customers. This new customer specific pricing is a definite reaction to that, makes good business sense for them but could be a PR disaster.

I haven't heard anything about a change in my rates.

stressedoutmumof1

Me and hubby had our emails today, mines gone up from 15.9% to 19.9%, and hubbies has gone up from 15.9% to 21.9% :mad: :mad: :mad:

jamesp_3

Mines gone down to 5.9% because i have a mortgage with them!!! Not that it matters. I'm remortgaging anyway.

I'm in the 'if you don't like it get out camp'. Credit card savvy customers won't care as they will be paying balances in full. Those with large balances have to realise that credit card companies can do this at any time. APR's are always subject to change. Bad PR? Maybe. I bet most people probably won't notice.

Jim

maffew_2

reply to my message
(thought they needed my permission to contact external CRAs?)



Dear Matthew

Thanks for your message.

Your new rate of 21.9% has been changed to reflect the relationship you have with Egg. Our assessment of your position includes an understanding of your borrowing outside of Egg and also takes into consideration information made available via external credit reference agencies.

To better understand your financial situation we have sent you an e-mail detailing the steps you can take.

We have a specialist team you can call to review and discuss it to gain a better understanding of your overall financial picture. They will explore your full income and expenditure with you, as well as any options there may be to improve your current situation and your future financial health.

You can reach the Borrowing Centre team on 08453040391.

Regards

Biz Sidhu
Borrowing Centre

GSD4ME

I had the same reply. As if they think I would telephone their Borrowing Centre to discuss my personal affairs. It makes it sound as if they know more about my financial situation than I do. Damn cheek!:mad:

Anyway I have transferred the balance already and will not use the card any more, so they will lose out.:rotfl: