Increase in Egg cc interest rate - why?

thriftykatie

I am really cross and wondering if anyone can offer any explanation and/or help.

I received a letter from Egg today saying that the interest rate on my cc is going to be increased from 16.9% to 21.9%. What have I done to deserve this? Having had my LBM at the end of December, I am now in control of my debts, and in fact the Egg card is the one I am paying off first, although it will take a few years, as it is the highest (apart from an Egg loan).

I owe around £7466 and am paying about £100 above the minimum payment. My credit limit is £8250 and I was always close to this (and on a couple of occasions slightly over) before my LBM. Over the years I have managed the account well. I also have an Egg loan, currently standing at £9525 (originally £14000) paying £321 monthly which will be paid off by November 2009.

Was going to do another snowball calculator but can't see a way of changing the interest without re-doing the whole thing. What I do know is that this is going to add on a few months to my DFD and that has really got me down. I was trying to pay off a few pounds extra to bring forward the date from 2010 but that looks unlikely now.

Is there anything I can do? Feel like I've been kicked in the teeth. ALthough coping with paying off my debts, I cannot get credit as my record is not good enough.

ferry

Well I am a brand new Egg customer and have yet to receive notification about the rise..
But I assure you if I do get it, and I'm sure I will, I'll be off to another lender faster than you ....imagine!

Cheeky so and so's...is this in direct retaliation to the thousands who are pressing their banks for a refund on the illegal fees that have been extracted from customers over the years..?

thriftykatie

I assumed it was a personal rise rather than one aimed at all customers. Perhaps someone will know...

dragonsoup

No I got a raise too but mine went from 9.99% to 10.99%. Mind you I have had it a while.

LittleVoice

You are not alone - you will find other threads in this section relating to the increase. It seems to be presented as responding to individuals, personalising the change, but in fact it seems to be affecting a lot of people.

It's not not even just those with outstanding balances, some of those who always pay in full or haven't even used the card in recent months have been notified of an increase.

CLAPTON

these boards are full of credit cards increasing their APRs recently so it may not be entirely personal.

---lee---

ferry wrote: »

Cheeky so and so's...is this in direct retaliation to the thousands who are pressing their banks for a refund on the illegal fees that have been extracted from customers over the years..?

How can you think such a thing you cynic

I get the distinct impression that the credit card companies have moved onto plan ‘B’ but I suppose they have to make up for it somewhere otherwise profits will go down and shareholders will complain - that's business.

Strangled

Mine also went to 21.9% , now got a Virgin CC, 13 months interest free for balance transfers :-) Just waiting for it to arrive.Filled the online form in friday last, recieved text/email today saying it on its way

YorkshireBoy

---lee--- wrote: »

I get the distinct impression that the credit card companies have moved onto plan ‘B’

There can't be anybody that didn't see this coming - surely?

Egg Banking managed to 'lose' circa £145m last year (even after charging allegedly unlawful default fees for half the year). Add in...

• Record levels of UK personal debt (totalling nearly £1.3 trillion now, and including around £60billion on credit cards - which is around £1,000 for every person in the country. When you consider that 20% aren't old enough to get a credit card, and many older people don't need one, that's an awful lot of debt).
• Record numbers of bankruptcies and IVA's.
• Increasing provisions for bad debt.
• A reduction in the allegedly unlawful default fees.
• Interest rates rising.
• Egg's sale to CitiGroup, scheduled to complete in April.

...and you can see why they're raising rates. And they haven't finished yet!

---lee---

YorkshireBoy wrote: »

There can't be anybody that didn't see this coming - surely?

Your right, it's a brave new world and an expensive one if your stuck with CC debt. It will be bank accounts next.

Egg Banking managed to 'lose' circa £145m last year (even after charging allegedly unlawful default fees for half the year).

It's the egg savings loophole - let's hope they don't close it

Paul_Herring

ferry wrote: »

is this in direct retaliation to the thousands who are pressing their banks for a refund on the illegal fees that have been extracted from customers over the years..?

In this particular instance, I'm inclined (unusually) to think not. I think this has more to do with Citigroup's acquisition of loss-making Egg recently, (as a potentially a quick way of getting Egg back into the black, or at least less in the red.)