Egg stitchup?

leaphaze

Can't see this anywhere on the forum, sorry if already posted.

Egg appear to now be treating balance transfer fees as purchases. In other words, as you're enjoying their money, their fee is earning them interest.

http://www.everyinvestor.co.uk/timArticles/tim_752_120_.asp

Other providers mentioned are Lloyds TSB, MBNA and Capital One

sdj25

I don't think this is new - they have definitely been doing it for sometime now.

Another reason to read your T&Cs.

----edit----

In fact, I am very surprised that they admit to not knowing of this before.

Also (wow, on a rant lol) .. not loving their ad-laden site!

Moggles_2

This wheeze has been mentioned here before, but cannot be stressed too often.

There's some ambiguity as regards the article. While the majority of lenders now charge balance transfer fees - a trend started by MBNA - only two, AFAIK, treat BT fees as purchases. For instance:

MBNA and MBNA-issued cards collect the BT fee with the first minimum payment.

Capital One charges a 2% fee, but because it's repaid first, it's in effect swallowed up by your first 3% minimum payment.

Egg and LTSB leave the BT fee sitting on successive statements attracting interest, since they're classed as purchase transactions, which are paid off last.

dickdasdedly

Hi
Ive just asked EGG if i will still get an 0% anniversary balance transfer this november which they replyed yes but they say there will be a balance transfer fee of 2.5%. is this corect. Last november when i last balance transferd & this jan when my hubby balance transfered there wasnt a fee.
The only reason we have kept the card was because of the anniversary fee free balance transfer every year and that you can transfer to your bank. Seems its time to ditch the egg, shame.. Thanks from. The wife

Flomay_2

I found that too this year. I transferred my balance to Egg last September in my anniversary month with no fee but noticed they had introduced one this year which is very annoying as my 0% interest NatWest credit card runs out end of this month.

However i have just received an email from Egg offering 5.9% for balances transfered for life of balance with no fee. Has to be done by 31 October though.

D_Brundle

They did the typical trick of making a subtle change in their T&Cs by email earlier this year. They also removed cash back as well.

Not much incentive to keep the Egg card these days.

Paul_Herring

dickdasdedly wrote:

but they say there will be a balance transfer fee of 2.5%. is this corect. Last november when i last balance transferd & this jan when my hubby balance transfered there wasnt a fee.

It is correct. They started charging the BT fee back in (I think) May this year.

I just sneaked in, in April, with my last BT with them. I've since cancelled my Egg Card (Still using the Egg Money for the cashback however.)

If you don't have Egg Money and you want to avail yourself of the 1% cashback (GE are/were doing 3% cashback) then apply for it before cancelling the Egg Card.

poggle99

I'm interested in this as I've just read through their T&Cs for the Egg card:

"5.1 If you pay up to the full minimum payment, we will apply the amount you do pay to reduce what you owe us in the following order:

* interest on any Transferred Balances and the Revolving Balance;

* any Card Repayment Protection premium (if applicable); and

* the remainder of the minimum payment will be allocated first to Charges made under Condition 7 and then divided between the balances stated in Condition 2 and applied to those balances accordingly."

(emphasis mine).

Condition 7 includes the BT fee from 19 October 2006

My interpretation of this would have been that as long as your minimum payment is more than the interest you owe on the balance, some of it should go towards paying off the BT fee. Am I missing something?

Cheers,

Rachael

Sixstar

I just found out - on my statement that Egg are charging me interest on the 2.5% balance transfer charge - I'm outraged by this!
I used to work for Egg and truly believed they put the customer first - well they still did that when I worked there!
I've now decided to close all my Egg accounts (2 credit cards and 2 savings accounts) as I am so disgusted with them.
I've also sent the CEO an email to let him know how disgusted I am with their underhanded sneeky fees - his email is - Mark.Nancarrow@egg.com if anyone else feels as strongly as me.

ex-egghead

Sixstar - you should know by emailing Mark he wont actually do anything with it! You need to complain through the correct channels. Plus his PA will filter out all that lot for him so he will never get to read it.