Egg Loan - Changed date direct debit - now monthly amount gone up

Seashells

Hi there

I have an egg loan that I am trying to clear asap. I currently owe approx £1,700. I have got just over a year to go on it, I am paying £138.50 per month and the interest rate is 7.9%.

My question is, a few months ago I rang them and wanted to change the date the direct debit comes out on, it was the 7th of the month and I changed it to the 22nd of the month. This has now made my loan go up by about £5.50 a month, when you times that by 12 its gone up by £66 a year. How can they justify this for changing the date of the direct debit by 2 weeks. Can't help feeling I am being conned.

I did not take out PPI otherwise I would be making a claim for that. I have another loan with Northern Rock, but when I changed the date on this one, they did not put the monthly amount up.

Also when I asked Egg for a settlement figure it was the same as the outstanding amount - £1,700. With my Nothern Rock loan it was a couple of hundred quid less.

Just have the feeling Egg are not as fair as Northern Rock. Does any one know if there is anything I can do about the £5 a month increase?

Thanks in advance.

CG19a

I have an Egg loan too. The balance you see at the time on your online account doesn't include the remaining interest in the term, so a £1700 balance would have roughly a £1700 settlement, (there is an option for a settlement figure online which adds the interest due since your last payment.) Also whenever I've phoned up to change my direct debit date they've always advised me of the payment increase, due to fact you are extending your loan term, albeit by a few days or weeks.

jonesMUFCforever

You changed the date so the first payment after this change would have had more days interest chargeable so it would make sense for that month's payment to increase.

Are you saying that subsequent payments have also increased?

Seashells

Thanks for your replies. Yes all subsequent payments have gone up. It used to be £133 a month, now its £138.50 each month, and will be until I finish paying it off. I am making small overpayments every few weeks of about £5 - £10 but the monthly amount is staying the same, although I am reducing the overall amount.

jonesMUFCforever

Then you need to contact them for an answer.