Egg Short Notice Rate Increase!

alchemist

Just had a letter from Egg today saying that the 'treat customers as individuals' and are 'personalising my interest rate'. I only have a £1000 limit on this card and have no balance on it.

They are increasing the rate from 16.9% to 21.9% from the 21st MARCH, yes that is just 9 days time. The letter also says that 'As a result of these changes, the estimated interest shown on your statement, which is purely given as a guide to interest you may pay, may be incorrect this month. This is ude to the timing of monthly statements, and will be rectified on future statements.

So, firstly how can they change an interest rate without that much notice, is 9 days really enough notice to give someone? what if I had a balance on the card? wham I would find in 9 days time I am paying more interest on it.

Secondly, surely a statement should reflect a true picture of the account, why can they not change the interest rate at the next statement date if they have to change it.

Anyway, it doesn't matter to me as I have just contacted them to cancel the card out of protest. Intersted to hear if anyone else got a letter like this one?

YorkshireBoy

alchemist wrote: »

So, firstly how can they change an interest rate without that much notice

The short answer is that section 17 of your T&C's, which you agreed to when you took out the product/received the notice of variation, say they can.

what if I had a balance on the card? wham I would find in 9 days time I am paying more interest on it.

Not necessarily. You'd invoke your rights under section 17.4 to either repay the debt or BT the debt away and, provided you did this within 60 days, the new higher rate wouldn't apply to your account.

Finally, my post is not intended to be callous. What you've experienced is the nature of the beast with credit cards. The simple fact is that credit cards are best used to cover a short term borrowing need. Don't get yourself in too deep.

alchemist

Hey Yorkshireboy, it's not callous. I know what you mean hence a zero balance on the card. I take on board what you say about the T&C but sure doesn't seem good customer service to make the change so quick.

Hey ho, as you say thats the nature of it ans with all the money that banks are making out of everyone elses money it's a blip in the ocean to them.

Paul_Herring

but sure doesn't seem good customer service to make the change so quick.

You seem to have got it late for some reason - people have been complaining about this round of "personalised" interest rates for some time on this board.

http://forums.moneysavingexpert.com/showthread.html?p=4512374

http://forums.moneysavingexpert.com/showthread.html?t=397005

raptorz

I got one about a year ago when it for raised by 1% and got another one this morning with another 1% increase. The amazing thing is for the past year the balance on the card has been ZERO so how can they increase the rate?!

Only reason Im keeping it is because I like their online banking where it does all your cards at once and its for emergencies only after all this.

YorkshireBoy

raptorz wrote: »

Only reason Im keeping it is because I like their online banking where it does all your cards at once

An Egg Savings account would ensure you retained access to the Egg Money Manager utility.

and its for emergencies only after all this.

Egg Money's typical rate is only 7.9% APR. Also, anecdotal evidence seems to suggest that Egg Card holders who have managed their accounts well are not (externally) credit scored when applying for Egg Money. Not sure if not using it for a year falls into well-managed though!

tripled

alchemist wrote: »

Just had a letter from Egg today saying that the 'treat customers as individuals' and are 'personalising my interest rate'. I only have a £1000 limit on this card and have no balance on it.

They are increasing the rate from 16.9% to 21.9%

I was annoyed when they put mine up to 19.9% a few months ago, looks like I got off lightly

Paul_Herring

YorkshireBoy wrote:

raptorz wrote:

Only reason Im keeping it is because I like their online banking where it does all your cards at once

An Egg Savings account would ensure you retained access to the Egg Money Manager utility.

Or use the service from the company that supplies Egg with the EMM (with more functionality) : https://www.ewise.com.au/accunity/aa/home.asp?pid=accunity