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

M_Thomson

mrslawrence2003 wrote:

now it seems i no longer have a credit card but an 'egg money' account .

Egg Money is still a credit card. I am not sure why you think it isn't? It just has an extra facility that you can put the account in credit and earn interest if you want.

mountainofdebt

choppper wrote:

so 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.

Whilst I understand what you are saying it, this really doesn't make sense if you think about it.

Someone who is considered a 'high' risk is charged a higer APR than someone who isn't.

So what happens to that 'perceived' higher risk when they put the interest rates up? That person takes an overall look at their situation and decides that they haven't got a snowball's chance in hell of ever paying their debt off and goes bankrupt.

Result: the bank doesn't get ANY of their money back.

What would be a better solution is if these perceived 'higher' risks are given a fighting chance (hey what about even decreasing their APR for a trial period????) but (and this is the crucial bit) lower their credit limits on a periodic basis.

Mr-T_16

I had an email this morning and my rate has been increased by 1% to 16.9% APR.

Thankfully I had a letter from Barclaycard a few days ago saying I'd been upgraded to a Platinum card and offered me 0% on BT til March '07 as well as lowering my rate from 19.9% to 12.9% - I'm shifting Egg on to that and I'll have it paid off by March for sure.

Barclaycard know how to keep customers, Egg clearly don't!

Joe_Bloggs

Can banks avoid paying tax on profits by making allowances for bad debts? It is the tax man who loses and us all in the end, by irresponsible lending and pricing of loans.
J_B.

mrslawrence2003

M_Thomson wrote:

Egg Money is still a credit card. I am not sure why you think it isn't? It just has an extra facility that you can put the account in credit and earn interest if you want.

Because Egg told me I no longer had a credit card with them and if I wanted one I would have to reapply for one......

Paul_Herring

Well they finally got round to emailing me. Egg money up from 6.9% to 7.9%

belleooo

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.

Mine as gone up the same. Though interestingly enough I have a credit balance of £5 with them and hanvn't used my card for two years. A small loan I have with them stays the same at 7.7%APR. I will cancel the credit card and claim my £5 though. I had no idea I had a credit balance of £5.

Paul_Herring

Paul_Herring wrote:

Well they finally got round to emailing me. Egg money up from 6.9% to 7.9%

Well I decided to contact them myself about this - the conversation follows:

Me wrote:

Date: 12 Sep 2006
Time: 11:29
Subject:Change of conditions

From an email you've just sent me:

> 3 ? we're increasing the APR on your card from 6.9% to 7.9%.
>
> 4.1 ? we're increasing the variable annual interest rate you pay on purchases,
> balance transfers and cash advances from 6.9% to 7.9%.

Are you going to be increasing the interest rate paid on positive balances from 4% to 5%?

If not, what is the justification in raising my interest rate by a massive 14.5%?

Egg wrote:

Date: 13 Sep 2006
Time: 13:49
Subject:Change of conditions

Dear Paul

To ensure you get the right answer to your question, I've passed your message on to our Borrowing team. I've asked that they contact you as soon as possible.

Please make sure that your contact details are up to date. To do this go to 'Personal details' at the top of the screen followed by the relevant option for the details you wish to change.

Thanks for your message.

Regards

Lauren Shaw
Internet Customer Services

Egg wrote:

Date: 14 Sep 2006
Time: 12:11
Subject: Change of conditions

Dear Paul

Thanks for your message.

The interest rates on your Egg Money are variable and we've made a decision to increase them to reflect a change in market conditions and base rate, therefore your rate has been increased from 6.9% to 7.9%.

At this moment in time there's no plan to increase the interest rate based on having a positive balance on the card however the rates we offer on all our products are constantly being reviewed.

Regards

Chris Walker
Loans Servicing Specialist

Ideas for a reply gratefully accepted

M_Thomson

mrslawrence2003 wrote:

Because Egg told me I no longer had a credit card with them and if I wanted one I would have to reapply for one......

I think what they meant was that you no longer have your Egg Green card. You still do have a Egg Money credit card though.

mrslawrence2003

M_Thomson wrote:

I think what they meant was that you no longer have your Egg Green card. You still do have a Egg Money credit card though.

i asked about my egg card - meaning credit card. they replied and said you dont have an egg card........

what is the difference between the egg card and egg money?