Can Egg terminate my loan?

Jinos

Hi all,

I'm wondering if anyone has some words of advice... I have an Egg visa card with £500 outstanding, which I paid off today. I also have a loan of £8501 with 3 years left to run (originally 4.5 years). I got a phone call from them yesterday asking me to call them as it's been 1.5 years since I got my loan and they need to 'go through my incomings/outgoingsand all other credit commitments to make sure that we are lending responsibly'.

I'm a bit worried about this as when I took out the loan it was partly to replace my car and partly to consolidate other borrowing. My outstanding borrowing is now more than it was then though! Also, rather stupidly I used the Egg visa card on some gaming sites over the weekend and although I didn't actually lose any money (I won so it's been refunded to the card) they say they want to talk about 'gaming transactions'! It's good that financial institutions are looking out for gaming problems but it feels like I'm going to be told off for using my card, legally, on that site (I know it's silly to gamble while owing money, I've learnt my lesson:o ).

Sorry this post is going on and on but what I want to know is if Egg don't like it that I have run up more borrowing, could they possibly terminate my loan? It's completely up to date, never missed a payment. I wouldn't mind closing my Egg card I just can't afford to find £8501 to pay off a loan!

Thanks for reading this far!

J

jonesMUFCforever

More likely to be fishing for more business!
If you have repaying on time they won't do anything.

However they well might block your Egg card.

tripled

I had one of those before, I ignored it so they blocked the card. They never threatened to terminate my loan.

crazy_chick_573

read your terms and conditions (i know long and boring but i could save you money) if they don't have the right and they do it you can sue them.

silvercar

Egg are always phoning to confirm transactions that are "unusual" in some way. The first time I spent over £100 online they phoned to check it wa me, when I used the card abroad they phoned again. Could just be security.

---lee---

I'm with silvercar. If gambling is outside of your usual spending pattern on Egg, I think they just want to make sure it was you that used the card. I would speak to them otherwise they will probably stop your card.

Jinos

crazy_chick_573 wrote: »

read your terms and conditions (i know long and boring but i could save you money) if they don't have the right and they do it you can sue them.

I have looked through them and I think the only thing it said about termination was if I hadn't given true information in my original application. All info was true at the time!
J

Jinos

Thanks all for replies. I got the feeling I was going to be given a lecture about gambling, considering that I owe money on the loan so obviously 'can't afford it'. I've always paid on time, not overdrawn on credit card etc. Can Egg run a credit search on me to check my other borrowing, without my knowledge?
Thanks
J

---lee---

Jinos wrote: »

Can Egg run a credit search on me to check my other borrowing, without my knowledge?

That would only happen if you asked for some sort of change to your card - increased limit for example or applied for a new product with them.

Rafter

Jinos,

Credit companies are constantly doing searches on existing customers to monitor their credit worthiness. It won't show up as a new search or application though.

You have a contract with Egg to repay your loan over 5 years and as long as you don't breach that contract by paying late then there is no legal way they can demand immediate repayment of loans.

Using a card for gambling transactions would trigger their computers to label you as potentially higher risk though and be careful - you may find you get clobbered with cash advance fees and interest rates on gambling transactions.

Your attitude to debt is something personal to you, but try to make sure you aren't building up debts for everyday stuff like food, petrol, clothes. Cars, Furniture and stuff is ok, but if you are building up debt for everyday stuff you need to budget carefully or hope your salary will continue to grow, otherwise at some point you will have to do some serious belt tightening.

Good luck.

R.

Jinos

Thanks Rafter, so Egg will 'know' how much and to whom I owe money in any case, even without me giving express permission for a search?
Both accounts up to date with them, and Egg card now clear so hopefully no termination then!

Yes, good point about the budgeting etc. I did have a pretty well paid job until 3 years ago when I moved town to be with my partner. Worked freelance for 2 years which didn't bring in very much so now have another full time job, but only at 70% of original wage... debt built up over time but now slowly coming down

All the best
J