Egg...

russbeck

I've just had a response from Egg after my letter asking for my charges back. They aren't going to refund any of the charges. It goes on about how the original agreement states that charges will be added if I exceed my credit limit or fail to make contractual payments.

It says that they don't believe these charges are unlawful or unfair. They say that they recognise that customers sometimes exceed their credit limit and/or fail to make a payment and has systems and processes in place to deal with this. These include the use of computer systems, staff and other necessary costs. The charges set out on the agreement are calculated by taking into account the costs incurred by Egg in maintaining these systems and processes and diving this sum by the estimated number of customers who will exceed their credit limit or fail to make payments. These charges therefore represent a genuine pre-estimate of the loss caused to Egg by customers who break the terms of their agreement.

It says that take steps to avoid these charges eg having direct debits and being able to manage your account on line.

This has taken me by surprise, I was expecting at least an offer of the amount between the £20 and the new £16 charge. Looks like they are starting to dig their feet in.

Oh well, I'm now gonna send another letter threatening to take them to court. Fingers crossed this get some sort of offer from them.

Will keep you posted.

jasun

Peterthepirate wrote: »

Hi, most of my charges were on credit cards. As these are already admitted as penalty charges in the OFT report and by banks, can I still go ahead with my claims for these?

I would have thought so myself but wondering what anyone else thinks.

Also, egg continues to charge £16 for overlimit charges and stated the OFT allows Egg alone to do this, is this true?!

Many thanks for your help.

I just started a thread about this actually, as I'm interested to know if there is anyone else still charging more than £12. Although they don't have to drop them, most suppliers have, apart from Egg and maybe others. The OFT action does not mean under or equal to £12 are fair, so continue to claim the FULL amount. Egg exempt?? :rotfl:

You can claim for the Egg card and loan still, outside of the OFT case.
I would simply start court proceedings and state that no stay should be ordered, since these are not current account changes and although basically the same, the test case does not cover them. The banks don't take you seriously most of the time until you start proceedings, so get that started.

I think Egg will be next on the list of cases I've got to deal with.

The current one, which is funny, is Barclaycard - They seem to think they are going to request a stay in relation to the Barclaycard charges and sent the documents they (Barclays) are sending out about current account claims and the OFT case, even though I clearly stated they won't be able to.

jasun

russbeck wrote: »

I've just had a response from Egg after my letter asking for my charges back. They aren't going to refund any of the charges. It goes on about how the original agreement states that charges will be added if I exceed my credit limit or fail to make contractual payments.

It says that they don't believe these charges are unlawful or unfair. They say that they recognise that customers sometimes exceed their credit limit and/or fail to make a payment and has systems and processes in place to deal with this. These include the use of computer systems, staff and other necessary costs. The charges set out on the agreement are calculated by taking into account the costs incurred by Egg in maintaining these systems and processes and diving this sum by the estimated number of customers who will exceed their credit limit or fail to make payments. These charges therefore represent a genuine pre-estimate of the loss caused to Egg by customers who break the terms of their agreement.

It says that take steps to avoid these charges eg having direct debits and being able to manage your account on line.

This has taken me by surprise, I was expecting at least an offer of the amount between the £20 and the new £16 charge. Looks like they are starting to dig their feet in.

Oh well, I'm now gonna send another letter threatening to take them to court. Fingers crossed this get some sort of offer from them.

Will keep you posted.

Don't bother, get the case opened, they will then take it seriously. Sending another letter will most likely just delay things further. I don't send letters requesting charges back, I only ever did that before my first claim. Now I just open cases, extra work for nothing, as most of the time they won't give you any or the full amount back without starting proceedings, especially if it is quite a high amount.

russbeck

I didn't realise you could do that. I thought it may go against you some how.

Will start right now.

Thanks for that.

System

I have successfully gotten back about 3K in bank charges before the test case came on the scene... I only had 1 cc left to claim against.

Question is, does this test case affect the CCs because its the banks charges that are in dispute, not the CCs.

Id like my £230 back please Mr Egg!

nickmack

13000 wrote: »

Question is, does this test case affect the CCs because its the banks charges that are in dispute, not the CCs.

The test case is for current accounts, so continue any claims with Credit Cards.

russbeck

Has anyone taken Egg to court. If so how did you get on?

hughie278

Ive just had a letter back from Egg stating that they have recieved my complaint and have four weeks to review it.

I told them on my letter that they have 14 days, so what do i do after the 14 days are up, from when they recieved it? Do i send them another mail saying im going to court? or do i just start proceedings?

Millieozzymog

Hello,
<O:p
Help please, I am reclaiming charges from my old egg credit card and they have written back using a standard letter and said to me to say that I have not provided any evidence to support my allegation and they do not accept it that the charges are unfair. <O:p</O:p
<O:p
They advise that the charges set out in the agreement ‘are a genuine pre-estimate’ of the loss caused to egg??
<O:p
But are willing to reimburse £4 only for every charge I occurred
<O:p
I’m unsure with regards to reclaiming charges for credit cards, should I be writing back and demanding the full amount?<O:p</O:p
<O:p
Any help is very much appreciated.<O:p</O:p
<O:p</O:p

Regards<O:p</O:p
<O:p
Cx

Milarky

First it's not a 'bank charges' matter as such. The OFT effectively agreed to credit card companies (which does include some banks of course) applying default charges, albeit at the lower rate of £12 per charge. So a £12 credit card default charge has effectively been deemed 'lawful' by the regulator.

Egg, for some reason (which others could explain) apply a default charge of £16 - making them out of line , but not hugely so, from most of the industry.

That's why I suspect they are offering you £4 partial refunds now - as they can't be sure they are on firm ground charging anything over £12. But that means that they are on much firmer ground if they simply give back the excess element.

I would accept the offer because no one as far as I am aware has been able to challenge £12 charges since they were introduced.