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

topgranny

dchurch24 wrote:

Ha - I bet there is NO-ONE who has had their rate lowered.

I posted this on another thread a couple of days ago. My rate went down by 6%, from 15.9% to 9.9%. No idea why - I haven't used it since last December when I stoozed with it (anniversary offer of 0%).

Haven't read all of this thread but there must be others who have had a reduction. I can understand how those who owe on Egg cards feel - moving the goal posts just aint on!!

markmc999

maffew wrote:

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

I assume that this is in the T&C's saying they will contact and keep contact with CRA during your relationship

M_Thomson

markmc999 wrote:

I assume that this is in the T&C's saying they will contact and keep contact with CRA during your relationship

Yes, it is the same with any issuer of credit cards.

choppper

Due to increased losses through bankruptcy and IVA's and general over commitment of unsecured debt credit card companies are all adopting a 'performance pricing' approach. This is to try and keep goos customers by giving them a lower rate and charging higher risk customers a higher rate.

The rate can be affected by missed/late payments, going overlimit, only paying minimum payment each month, cash withdrawals, end of month spending leading up to pay day in supermarkets and many other reasons that there sophisticated behaviour spotting systems can detect.

Also due the increased media and political interest in the level of unsecured debt which have led to increased sharing of information between credit cards companies peoples accounts are being priced ( i.e the interest rate on the account) accordnig to risk. Therefore also if you have a large amount outstanding debt showing at the credit reference bureaus this can also increase thr perceived risk which may explain why you would have your interest rate increased.

This also works the other way in that if you are a good customer then to try and maintain your business you may have your rate reduced.

As for whether Egg are legally allowed to increase your rate I am not sure. As far as I am aware (although dont take this as fact) if a credit card company informs you they will increase your APR you can refuse to accept it by writing to them within a certain timeframe which I thing is 14 days or may be a month. They would then have to honour your acct at the previos terms and conditions( and interest rate) although they would likely withdraw the use of the account and likely start to reduce your credit limit as you pay of the balance.

I notice that Egg have in there T&C's that if you dont accept the new APR then you will have to pay off the full balance within 60 days. I am not sure if this is enforcable either as all credit card Terms and conditions are protected by the consumer credit act 1974 which hold both the lender and borrower equally responsilbe for a debt being outstanding and the consumer can be protected from damaging interest rates rises.

I woudl suggest you contact Egg and ask to speak to a manager and ask them outright whether you can refuse the increase and what action they will take in relation to teh 60 day demand for repayment of the full balance if you cannot pay this. Ask specifically would they default the account after 60 days, sell it to a 3rd party, woulld anything be registered on your credit file.I would take the notes and the name of the person and there job title as I would cynically, expect to be mislead by egg as I am quite sure I am right about not having to accept the increase but I would expect egg and the person you speak to not to want you to know you dont have to accept the higher interest rate should I be correct. I would then speak to the CAB a solicitor or the banking ombudsman to confirm whether you do have to accept the increase and to compare to confirm if what egg have told you is correct and if not include this in any complaint you may make.

I would also mention during the call that you intend to contact the ombudsman as it normally sends the wind up banks and finance companys as the ombudsman charges the company hundreds of pounds for every complaint they have to investigate!!! So in cost effectiveness terms they will very often back down

M_Thomson

choppper wrote:

I would also mention during the call that you intend to contact the ombudsman as it normally sends the wind up banks and finance companys as the ombudsman charges the company hundreds of pounds for every complaint they have to investigate!!! So in cost effectiveness terms they will very often back down

The ombudsman will not even look at a complaint, until you have exhausted all the banks complaints procedures. Do you not think banks know this?

maffew_2

I'm someone whos had their interest hiked from 14.9 - 21% last week and just come home to a letter telling me they've upped my credit limit

hmmm

magni

I haven't had any emails from Egg and the interest on my Egg Card and Egg Money are still at the same rate. I have checked my loan account with them and it's come down from 7.7 to 6.7. I have not had any emails or letters about this though.

klondyke

topgranny wrote:

I posted this on another thread a couple of days ago. My rate went down by 6%, from 15.9% to 9.9%. No idea why - I haven't used it since last December when I stoozed with it (anniversary offer of 0%).

Haven't read all of this thread but there must be others who have had a reduction. I can understand how those who owe on Egg cards feel - moving the goal posts just aint on!!

Me too, but since I never pay interest, doesn't make a jot of difference!

Barcode

I haven't had any contact from Egg by e-mail, but just logged in today to find my rate has gone up from 15.9% to 16.9%. It's time to look for another 0% offer and get rid of this I think now it is all paid off.

mrslawrence2003

Barcode wrote:

I haven't had any contact from Egg by e-mail, but just logged in today to find my rate has gone up from 15.9% to 16.9%. It's time to look for another 0% offer and get rid of this I think now it is all paid off.

i did the exact same thing yesterday but lo and behold today i have rcvd an email informing me that it had changed. incidentally, initially i had a green card and egg wrote to me and informed me that as i was such a good customer they'd like to offer me the blue credit card. i thought ok and so took that out. now it seems i no longer have a credit card but an 'egg money' account.......i always pay more than the minimum amount off each month and pay additional money during the month as and when necessary - i've gone over the limit once about 3 years ago as the applied interest and insurance took me over. i also have a loan with them which they agreed to increase significantly a couple of months ago. but seems whilst i'm not the highest risk i am still quite a risk.

lucklily i've already transferred £1,000 of the balance over to my lloyds platinum card, but i'm stuck with the remaining £1,100.