Changes to Egg Card T&Cs

katecheshire

Received an email saying Egg Card would be having new Terms and Conditions. The minimum payment will be ONLY 1%. Obviously nobody should be doing minimum payments . . . . !

Apart from the morality of Egg doing this so that payment times will be extended to infinity and more interest paid . . . it should not be possible for CCs to take so little as a minimum payment.

Make sure you are paying at least as much as you have been paying!

[Deleted User]

Are you sure it says 1%? Or 1% plus fees and interest?

pmarsh1986

[FONT=Arial, Helvetica, sans-serif]This is the email I received in relation to Egg card. The *starred* sections relate to this passage:[/FONT][FONT=Arial, Helvetica, sans-serif]* We are making these changes to meet the requirements of the joint commitment between the government and credit card companies, on the way that credit cards operate in the UK."[/FONT]
[FONT=Arial, Helvetica, sans-serif]
A number of Conditions have only been renumbered with no material changes. A summary of the material changes we are making to your Agreement are detailed below. Your terms and conditions (including interest rate) are otherwise unchanged.

Changes effective from 29 December 2010:

Condition 3
We have changed the way the minimum payment is calculated.* The calculation ensures the minimum repayment covers at least 1% of the statement balance, plus all default and account fees.

Condition 6
We have changed the way we will apply payments received from you.* In future, your payments will be applied to pay off the highest rate parts of your balance first.

Condition 11.10
We have changed our practice in relation to credit limit increases.* We will give you 30 days' advance notice of any credit limit increase we may offer, so you have the opportunity to tell us if you don't wish us to apply it to your account.

Condition 16.1
We have clarified that we will only make statements available to you during the Agreement.

Condition 19.1
We have changed our practice in relation to interest rate increases.* We will now give you 60 days' notice of interest rate increases. We will also tell you about your right to tell us that you do not wish to increase your interest rate, but wish to stop using the card and repay the existing balance at your current rate.

Condition 19.3
We have removed the reference to changes in technology as a reason for making changes to your Agreement.

Changes effective from 11 January 2011:

Condition 22.1
We have changed the number of days notice we must give to you to end your Agreement from 30 days to 60 days.[/FONT]

pmarsh1986

and re: the minimum payment, the actual T&Cs say this:[FONT=Arial, Helvetica, sans-serif]

3. REPAYMENTS

Each month you must pay by Direct Debit at least the minimum payment by the Payment Date shown in your statement. Unless we tell you otherwise the minimum payment will be:

the Statement Total if it is less than £5, but otherwise the greater of:

• 2% of the Statement Total; or
• the total of:
  (i) interest billed on the statement;
  (ii) 1% of the Statement Total;
  (iii) any Card Repayment Protection premium shown on your statement; and
  (iv) billed fees for overlimit, late or returned payments shown on your statement; or
• £5.

[/FONT]

danielwhitehouse

I think I have an Egg card and possibly a loan too, don't use them much but still have to pay some off. Noticed on their website that they are not accepting new customers anymore. I hope they havn't run out of cash. In fact, what happens if they do go belly up?

JMU-95

pmarsh1986 wrote: »

[FONT=Arial, Helvetica, sans-serif][/FONT][FONT=Arial, Helvetica, sans-serif]
Changes effective from 29 December 2010:

Condition 3
We have changed the way the minimum payment is calculated.* The calculation ensures the minimum repayment covers at least 1% of the statement balance, plus all default and account fees. [/FONT]

OMG I received this too. Does this mean they're automatically only going to take 1% of the statement total if you usually only pay the minimum payment!! Outrageous. You could be in debt forever if they go on like this. I presume I can phone up and ask them to take a set amount?

honeybun16

you can set the amount each month through their on line access, so you can continue to pay to current monthly amount rather than requesting to pay the minimum

mjm3346

JMU-95 wrote: »

OMG I received this too. Does this mean they're automatically only going to take 1% of the statement total if you usually only pay the minimum payment!! Outrageous. You could be in debt forever if they go on like this. I presume I can phone up and ask them to take a set amount?

No it does not.
They will take the highest figure of
2% of statement total
1% of statement total plus interest and fees etc
£5

This means you will always reduce the outstanding balance by at least 1% and the minimum payment will never be less than 2%.

nzseries1

katecheshire wrote: »

The minimum payment will be ONLY 1%
...
Apart from the morality of Egg doing this so that payment times will be extended to infinity and more interest paid . . .

Banks lower their minimum payment, and people say they're acting unethically and are without morals.

They raise their minimum payment, and people complain that they can no longer afford it.

They just can't win.

mjm3346

nzseries1 wrote: »

Banks lower their minimum payment, and people say they're acting unethically and are without morals.

They raise their minimum payment, and people complain that they can no longer afford it.

They just can't win.

That's true, in this case they are getting blamed for something that has not happened, the minimum 2% repayment has not been reduced.