Egg Lowering APR

Jeewhizz

Just got this email from egg - I haven't contacted them about this, always pay my balance in full each month etc:

We are making some important changes to your Egg Card Conditions.

You'll see below a summary of the changes to your Conditions and the dates they become effective. It's important you understand what the changes below mean to you, so please read the following information carefully.

A summary of the changes effective from 21 March 2007
3 – this change is to confirm we're decreasing the APR on your card from 16.9% to 10.9%.
4.1 – this change is to confirm we're decreasing the variable annual interest rate you pay on purchases and balance transfers from 16.9% to 10.9% and for cash advances the variable annual rate increases from 22.9% to 23.9% pa.
6 – this change is to confirm that if you make a Purchase of £1,500 and then repay it in 12 equal monthly repayments the interest to be paid would be £86.06 due to the decreased interest rate. As this example is based on a set of assumptions, this does not reflect the amount of your actual interest payments.
14 – we have included some guidance for you on checking the transaction entries on your statements. This includes the need for you to report to us, within 60 days, any transactions you do not recognise or which you dispute.

A summary of the changes effective from 1 May 2007
1 – we have shortened this Condition by moving part of it (after the first sentence) to Condition 9.6.
5.2 – this change is to amend the order in which we apply your monthly payments, so cash advances are paid off after balance transfers and purchases.
9.6 – this change is to clarify that if we reduce your credit limit, we'll take into account all relevant factors. The new limit will also be a sum greater than your existing balance.
19.2 – this change is to broaden the circumstances when we can ask you to pay the full amount owing to us. This now includes Individual Voluntary Arrangements (IVA), and sequestrations (bankruptcy in Scotland).
19.4 – this new Condition confirms that if you have a positive (credit) balance on your card, but owe us money on any other account you have with us, we can use your positive card balance to reduce the amount you owe us on that other account. We will of course tell you if we do this.

Jee

Petmidget

Well lucky you as most people seem to have it going in other direction.

But if you think about it from their pov, you dont pay interest as you pay off each month, so they are trying to tempt you to borrow on it.

While a ton of people who have balances have seen their rate jump 30%.

This is frankly pretty devious imo. I am just grateful that I am clearing my balance in a couple of weeks so wont suffer from the exobitent rate rise they gave me.

raf300

I was told this week that egg card is increasing their rate from 16.9% to 17.9%.

You must be lucky if yours is going down.

Jeewhizz

I'm at a loss as to why it is going down! They may well be tempting me, but as I always pay it off in full (and have a relatively low limit), there's not much damage that I can do!

login_details

I haven't been using my Egg card (£9300 credit limit) for about 3 years - its got a £1 +ve balance on it - just received the letter from Egg saying that my personal interest rate for purchases will be going up from 16.9% to 23.7% - I'll be closing the card!
I think Egg are trying to weed out dormant or unprofitable accounts.

Petmidget

I have got to wonder at Egg at mo.

Firstly they hike my rate, I pay about 5 * min balance every month and will go clear in a few weeks. So they have pretty much guaranteed I wont use the card again, never spend on cards anyway only dealing with historical debt. The card has only been out of 0% for a couple of months, they have made less than £200 out of me total.

Now I get email this morning offering BT at 3.9% until 1 August. Make your minds up am I a good customer or not!! The deal isnt that brill anyway, worked out with BT fee is actually 11.4% apr, I can get better than that elsewhere.

dreamylittledream

Mine has been lowered too.

I also clear my balance in full each month so its largely irrelevant.

raf300

login_details wrote: »

I haven't been using my Egg card (£9300 credit limit) for about 3 years - its got a £1 +ve balance on it - just received the letter from Egg saying that my personal interest rate for purchases will be going up from 16.9% to 23.7% - I'll be closing the card!
I think Egg are trying to weed out dormant or unprofitable accounts.

Sounds about right, I havent used mine in ages.

isabelle304

I too received that Egg e-mail this morning. Wish they'd sent me it when I owed them £12000 four years ago Now of course I also pay off the balance each month - and no way am I tempted to do otherwise, even with the APR decrease.

ermitsme

And I got this one too…

Wake up to 1.9% pa…

Dear Mr Erm.

Open your eyes to a great way of sorting out those nightmare balances…

We're offering you an amazingly low balance transfer rate of just 1.9% pa fixed. So if you've got card balances, loans or an overdraft, then now's the perfect time to transfer the lot to your Egg Card.

You'll get this rate right up until 1 August 2007. Then you'll pay your standard variable rate. Stop dreaming and wake up to a better rate today, or by 31 March 2007. There's a 2.5% handling fee for each balance transfer made.

Notice, “your standard variable rate”

Sorry EGG, you’ve lost my custom…

[Deleted User]

Hmmm I always pay in full as well, yet they increased my rate to 17.9%. Needless to say I am closing the account.