Egg Loan Terms & Conditions

barshamhillbilly

Sorry for the exceedingly long post but wondered if anyone put my mind at ease. I have a defaulted Egg loan which has just been sold to APEX. (Circa £5300)

Could any legal beagle tell me if the following terms and conditions allow APEX to charge / add any interest (as its defaulted)? I was under the impression that it had to be written in that if the debt was sold on then they could and if it wasn't specifically stated that the couldn't ? Sorry - they are a bit long winded .....

thanks in advance
(I have taken out a couple of paragraphs that obviously don't affect it to make the post short enough as the amount oif characters went over the limit.)


[FONT=Arial, Helvetica, sans-serif] Personal Loan Agreement Terms and Conditions

These terms and conditions form part of your Personal Loan Agreement ('this agreement'). 'we', 'us' and 'our' mean Egg Banking plc and any business or other person we transfer any or all of our rights and responsibilities to under this agreement.

1. MAKING THE LOAN

1.1 This agreement will be deemed to be made on the day we receive the signed agreement from you, except that it shall not be binding on us until we have completed and are satisfied with our final credit checks and other searches and unless we receive within 3 months of the date we signed this agreement:

• this agreement signed by you;
• any other documents or information we requested, in the form we asked for;
• a valid Direct Debit instruction for the monthly payment instalments.

1.2 We will make the loan available to you by crediting it to your United Kingdom bank or building society account specified in your Direct Debit instruction. If you have asked us for a loan to repay any other sums you owe us, we will repay those sums before paying the remaining sums to your account as instructed. If you have asked us for a loan to repay any sums you owe any third party, we may pay such sums directly to the third party before paying the remaining sums to your account as instructed. Otherwise we will pay the whole amount to your account for you to pay the third party.

2. REPAYMENTS

2.1 You agree to repay the loan by the instalments and on the days specified under the heading "Key Financial Information" in this agreement or as amended by the terms of this agreement.

2.2 You may, by notifying us of your wish to do so, change your payment date to a date falling within one month of the payment date specified in this agreement. If you change your payment date, we will notify you of the new amount of the monthly instalments which will include any change in the amount of interest payable by you as a consequence of that change.

2.3 We have assumed in calculating the repayment amounts and the Total Charge for Credit set out under the headings "Key Financial Information" and "Other Financial Information" in this agreement that the first instalment will be paid 30 days after the loan is made. If it is actually paid more than 30 days after the date that the loan is made, there will be additional interest to pay on the loan in respect of the additional number of days for which the loan is outstanding as a result. We will notify you of the additional amount of interest and when it is payable.

2.4 You must make the payments by Direct Debit from an account you maintain with a bank or building society in the United Kingdom. If you make a payment by cheque, it will be applied to your account when the cheque clears. The central clearing cycle applies to cheques paid into most clearing bank accounts (where clearance normally takes three business days). As we are not a clearing bank, cheques paid into your account normally take eight business days to clear. We will charge £2 for any cheque payments.

2.5 If you do not pay any amount to us, including any amount which becomes payable under clause 3.1 below, on the date required by this agreement, we will charge interest on that amount at the interest rate specified in this agreement under the heading "Key Financial Information". Any such interest will be calculated on a daily basis from the date the amount falls due for payment until it is received and will accrue at that interest rate both before and after any court order for payment.

2.6 If you've more than one loan or card product from Egg and fail to keep up payments on those products, we will, unless you tell us otherwise, allocate any sums we recover from you to the product with the highest interest rate. If two or more products are being charged the same interest rate, we'll choose how to allocate the payments between those products.

3. DEFAULT AND EARLY REPAYMENT

3.1 We may refuse to make the loan available or, if you have already received the loan, demand repayment of the full amount you owe us if:

• you fail to pay on its due date any amount payable to us under this agreement or under any other agreement with us; or
• you fail to comply with any of the other terms of this agreement; or
• we discover that any material information which you provided in the course of obtaining the loan is incomplete, inaccurate or untrue; or
• you die or become insolvent or any steps are taken by or against you for your bankruptcy or any proposal is made for a voluntary or other arrangement or composition with, or assignment for the benefit of, all or any of your creditors.

3.2 Before demanding early repayment under clause 3.1, we will send you a Default Notice under the Consumer Credit Act.

3.3 If you find yourself in financial difficulties, you should let us know as soon as possible. The sooner we can discuss your problems, the easier it will be for both of us to find a solution. We can also tell you where you can get free money advice.

4. ENDING THIS AGREEMENT

4.1 If you are not happy about your choice of loan, let us know within 14 days of sending your completed agreement back to us and we will cancel this agreement. You must repay us all amounts you owe us within 30 days of cancellation. To cancel your agreement please call us on 08451 233 233 or write to Loans Complex, Egg plc, Riverside Road, Pride Park, Derby, DE99 3UL, or send us a secure e-mail from our website. You should quote your account number in all correspondence. If you do not cancel this agreement, you will continue to be bound by the terms and conditions of this agreement. You may have extended cancellation rights in certain circumstances. If you do, and you exercise those rights, you will still have to pay everything you owe us for the period up to cancellation, including interest and charges.

4.2 You can end this agreement at any time by paying off all amounts payable under this agreement.

5. ADDITIONAL PAYMENTS

5.1 You may settle this agreement at any time by paying off the full outstanding balance. Examples of how much you may have to pay to settle this agreement at various stages of the term are set out in this Agreement under the heading "Key Information". Please note though that these are intended as examples only. They are based on certain assumptions including that all payments are made on time and that none of the options in clauses 5 to 7 of this Agreement are exercised. Please contact us for the actual amount that will be payable.

5.2 In addition to your right to settle this agreement by paying off the full outstanding balance you may make an early repayment of part of that outstanding balance at any time.

5.3 If you make an early repayment of part of the outstanding balance you can choose to change the amount you will pay each month and/or change the remaining number of repayments provided that each remaining instalment will be for an equal amount and the outstanding balance will still be paid within the period of time originally provided for in this agreement.

5.4 You may increase the amount of your instalments at any time to an amount you choose by notifying us of your wish to do so. We will notify you of your new term expiry date following your changing the amount.

6. EXTENDING THE LOAN TERM

If you have been paying instalments when required by this agreement for a continuous period of at least six months, you may choose to increase the number of monthly repayments set out under the heading "Key Financial Information" in this agreement. You may increase the number of payments by up to the original term shown under the heading "Key Financial Information" in this agreement provided that the overall term as extended may not exceed seven years. We will notify you of the new amount of the monthly instalments, which will include the additional amount of interest payable as a consequence of the extension.

7. REPAYMENT HOLIDAYS

If you've paid your previous three instalments on time, you may (by giving us at least seven days' prior notice of your wish to do so) choose to take a repayment holiday of up to three months. If you choose to take a repayment holiday and unless you tell us otherwise, the term will remain unchanged and the amount of the remaining instalments will increase. Alternatively, you may choose to slightly increase your monthly payments (these will now include the additional interest payable by you as a consequence of suspending your payments) and to increase the number of monthly repayments set out under the heading 'Key Financial Information' provided that the overall term as extended may not exceed one hundred and five months.

We'll notify you of the new amount of the monthly instalments following your notifying us of your wish to suspend your payments and we'll also tell you the new loan term expiry date. We'll also notify you of any change in the amount of interest payable by you as a consequence of suspending your payments.

8. USE AND DISCLOSURE OF PERSONAL INFORMATION

8.1 For the purposes of this Condition 8 "Group" means Prudential plc and its group of companies including Egg Banking plc.

So that we can provide products and services designed specially for you, we will collect and review all the information ('personal information') which:

• you give to us, to other Group companies and to companies which provide any additional benefits or services to you under an arrangement with us ('linked suppliers');
• or which we, other Group companies and linked suppliers obtain about you personally, in connection with this agreement and any accounts or products and services you take from us.

This is to help us develop and maintain an up-to-date picture of you as an individual, which we and other Group companies can use to keep you informed about other products, services and special offers (including those supplied by third parties) which we or they think might interest you. We may tell you about these using a range of methods, including electronic communications, such as the telephone, SMS or e-mail. Please tell us if you prefer not to receive information about other products or services or you do not want other Group companies to be given your Personal Information. The information we collect (using a range of methods including cookies and similar tracking devices) will include information about how you manage and use your accounts, including the type of purchases you make from your accounts (whether by a card, Direct Debit or in any other way) and payments which are made into your accounts. This information will include the name of the payer (for example, your employer) and the supplier (for example, a shop) and the general nature of the goods and services paid for. We obtain this information automatically as part of operating your accounts. If you do not want us to have it, you should consider an alternative to using your account. If you operate your account by Internet, we also use cookies (small pieces of information which we send to your computer) and web logs (information about how you use our website) to improve the security of our service and obtain information. For more details about cookies and web logs, see the security and privacy pages.

8.2 We will hold and process your personal information and disclose it to other Group companies for them to use:

• for assessment and statistical analysis for our or their business;
• for the purposes set out in clause 8.1 Group companies will only do this if you have agreed that they can;
• and for considering any application you may make to us or them and for this purpose we may share your Personal Information with the non-Egg divisions of Egg Banking plc.

8.3 We and other Group companies may disclose your personal information:

(a) to credit reference and fraud prevention agencies or registers. We'll make searches of your details with credit reference and fraud prevention agencies when we consider your application. If false or inaccurate information is provided and fraud is identified, details will be passed to fraud prevention agencies. Law enforcement agencies may access and use this information. We'll also give details of how you manage your account to credit reference agencies. (We do not use credit reference agencies in connection with applications for, or the management of, savings products). The information that we give to fraud prevention and credit reference agencies will be recorded by them and shared with other organisations. Organisations access and use the information recorded with fraud prevention agencies to prevent fraud and money laundering, for example when checking details on applications for credit and credit related or other facilities, managing credit and credit related accounts or facilities, recovering debt, checking details on proposals and claims for all types of insurance and checking details of job applicants and employees. You can ask us for details of the fraud prevention agencies we use and can find out more about how credit reference agencies use information in the 'Frequently asked questions' section on https://www.egg.com. The fraud prevention agencies' records can also be accessed and used by organisations in other countries.

(b) to our insurers, sub-contractors and persons acting as our agents who have agreed to keep your personal information strictly confidential;

(c) to linked suppliers to the extent that they need your personal information to provide additional benefits or services to you;

(d) to any bank, financial institution or company to whom we may assign or transfer our rights and/or duties under this agreement;

(e) with your consent; and

(f) if we are required or permitted to do so by law.



8.4 We may transfer your personal information to a Group company, linked supplier or sub-contractor or person acting as our agent in another country so long as they agree that your personal information will receive the same levels of protection as we are required to give it in the UK.

8.5 Under the Data Protection Act you are entitled to a copy of your personal data held by us on payment of a fee.

8.6 Some of our decisions are automated, based on information we hold about you. If you would like us to review a decision we have made about you (whether or not automated), please let us know within 21 days of being notified of a decision we have made about you.

8.7 You have the right of access to your personal records held by credit and fraud agencies. Please contact Egg if you would like details of the agencies we use.

8.8 An "association" between joint applicants and/or any individual identified as your financial partner, will be created at credit reference agencies, which will link your financial records. You and anyone else with whom you have a financial link understand that each other's information will be taken into account in all future applications by either or both of you. This linking will continue until one of you successfully files a "disassociation" at the credit reference agencies.

9. CHANGES

9.1 We can change this agreement to make it fairer to you or more easily understandable, or to correct a mistake (provided that this correction would not adversely affect you), or to cover a development in, or the introduction of, new products and services or to reflect a change in the law or any code of practice (or the way in which they are applied). We may also vary our charges on your account for any of the following reasons:

• to reflect a change in market conditions or banking practice or the overall cost of providing our services to our customers;
• to reflect a change in the law or any code of practice (or the way in which they are applied);
• to reflect a change in technology, to cover an improvement or change in our services or in the facilities that we provide;
• to ensure the good management or competitiveness of our business; and
• for any other valid reason.

9.2 We will give you at least 30 days prior notice of any change or addition to this agreement which is to your disadvantage and we will let you know of the change by sending you an e-mail, letter or separate written notice. Provided that you have repaid all amounts you owe us, you have the right to close your account at any time up to 60 days from the date of the notice so that the disadvantageous change does not apply to you.

9.3 We may make any other changes to this agreement which are not to your disadvantage immediately and will tell you about them within thirty days after the change. These changes will be so notified by sending you an e-mail, letter or separate written notice.

9.4 If we have made a major change or a lot of minor changes in any one year, we will give you a copy of the new terms and conditions or a summary of the changes.



14. GENERAL

14.1 We may assign or transfer our rights and/or obligations under this agreement to any bank, financial institution or company and may disclose your personal information to any bank, financial institution or company to whom we may assign or transfer those rights and/or obligations. We may do this without telling you. Your rights under this agreement and your legal rights (including under the Consumer Credit Act 1974) will not be affected.

14.2 Loans are only available to people aged 18 or over who are permanently resident in the UK.

14.3 This agreement is governed by the laws of England and Wales which will also govern the relationship between us and you before the conclusion of this agreement. The courts of England will have non-exclusive jurisdiction for any related disputes. We will always communicate with you in English.

14.4 Other taxes or costs may exist that are not paid by us or imposed by us.

14.5 If at any time we relax any of the terms of this agreement we will retain the right to enforce those terms strictly again.

14.6 Notwithstanding the terms of any security which we hold or may in the future hold, the sums due under this agreement are unsecured, except for rights arising by operation of law.

14.7 We may record or monitor phone calls between us so that we can check instructions and make sure that we are meeting our service standards.

14.8 We will comply with the provisions of the Banking Code. A copy of the Banking Code is available on https://www.bankingcode.org.uk.

14.9 We provide banking, credit and other financial products and services to consumers and are licensed for these and related purposes by the Financial Services Authority (reference number 205621) and the Office of Fair Trading (licence number 410357).

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GeorgeUK

14.1 We may assign or transfer our rights and/or obligations under this agreement to any bank, financial institution or company and may disclose your personal information to any bank, financial institution or company to whom we may assign or transfer those rights and/or obligations. We may do this without telling you. Your rights under this agreement and your legal rights (including under the Consumer Credit Act 1974) will not be affected.

One of their rights is the right to charge interest on a defaulted account. This is saying that these rights may be transferred to a 3rd party, so in answer to your question - I beleive that this would allow a 3rd party that bought the debt to add charges and interest.

If still unsure, i would read that section out to the nationaldebtline and get their view on how it could impact you.

barshamhillbilly

Thanks GeorgeUK. I assumed that is what that particular pargraph meant. I guess i was hoping that they wouldn't be able to. Just want it out of the way as quick as possible.

Mind you, having said that, its on hold waiting for a full statement and a formal copy of T&C's and C's from them

Thanks again