Egg Money Help - Charged Interest ??

stylus360

Hi All

I have an Egg money card for the instant cashback offers and 1% cashback. I ALWAYS pay the full amount each month and clear the balance.
I have only just noticed that i am being charged interest ?
It states 'interest charged at 0.639 per month - £7.38'

How is this possible if i am paying the full outstanding balance, is this a mistake.

Anyone help ?

Thanks.

KTF

Does this appear on the statement or is it a note at the bottom to give you an idea of the interest that would be added if it wasnt paid?

I have an egg money card that is cleared every month as well and that hasnt had any interest applied. I would contact egg and see what they say.

lisyloo

Did you make any cash advances?

e.g. did you take any money from a machine or buy any foreign currency?

Purchases are interest free, but cash advances are not.
Did you get any cash on your card?

I nearly bought some foreign currency from M&S once before I realised it would count as a cash advance rather than a purchase.

If all your transactions are straight purchases of goods then I would send Egg a secure message and ask them why you have been charged interest.

Was your last payment late at all?

stylus360

My money is cleared in full every month automatically. I use my EGG card for everything basically although i have not had any foreign money on it.
I use it at cashpoints, for paypal etc.
It shows on statement as ' interest at 0.639 - £7.48 DR '
I thought there were no charges at all, what have i got to avoid then ?
Surely you are able to withdraw cash etc from cashpoints without a charge (unless of course they are the rip-off ones which ask you before you proceed)

Thanks.

johnmoney05

stylus360 wrote: »

My money is cleared in full every month automatically. I use my EGG card for everything basically although i have not had any foreign money on it.
I use it at cashpoints, for paypal etc.
It shows on statement as ' interest at 0.639 - £7.48 DR '
I thought there were no charges at all, what have i got to avoid then ?
Surely you are able to withdraw cash etc from cashpoints without a charge (unless of course they are the rip-off ones which ask you before you proceed)

Thanks.

You can't withdraw cash if your account is without postive balance, otherwise they will charge you interest. You need to read the T&Cs very carefully.

abitrubbish

I have never been charged for cash withdrawals... My account is never in positive balance.

tom188

No cash advance fee on egg money but no interest free period either.

lisyloo

Hi Stylus,

Have a look on the website in the summary box.

Maximum 50 days for purchases if you pay your balance in full and on time. There is no interest free period on cash advances or balance transfers.

There is no interest free period on cash advances (unless you are in credit).
You have to pay interest on cash you borrow from the day you borrow it until you clear it.

abitrubbish,

This must be a mistake if you are not being charged.
I would suggest keeping an eye on your account on-line regularly as sooner or later they will track down the loophole and you'll have to pay interest.
Theorectically they could back date your interest but if it's their mistake then they will probably let it go.

johnmoney05

abitrubbish wrote: »

I have never been charged for cash withdrawals... My account is never in positive balance.

Well, if you are so sure! Good luck!!

abitrubbish

I haev just checked the t&c and think i have figured it out. Cash advances are repaid before purchases, and I have been making additional payments periodically (as I have an insufficient credit limit) and have also done a balance transfer stoozing style, could it be that the cash withdrawals have co-incidentally been repaid before they acquire any/much interest? It is only the occaisional £10/£20 which wouldn't attract a massive amount of interest.

I have had a minimum interest charge of £0.50 on my last couple of statements, so maybe it just came in below this amount?

I might have to rethink my use of the Egg Money card for cash withdrawals now, so thanks for pointing this out!

lisyloo

yes, sounds like you have been paying off the cash advances and incurring small interest.

You should also check the order between the balance transfer and purchases.

Martins advice is NEVER, EVER, EVER, EVER spend on a stoozing card.

This is becuase sometimes they pay off the balance transfer first so you have to pay interest on your purchase for the entire length of the stooze period.