Egg Loans - underhand Ts & Cs?

grumpy_grizzly_2

Hi,

I've an Egg Loan (fixed rate) with one payment remaining. Today I received a letter stating that the final payment would be an amount which is £120 more than all the previous payments.

I phoned and they said that because the first payment was made more than 30 days after the loan was drawn down, they can charge interest for that period. From their website:
2.3 We have assumed in calculating the repayment amounts and the Total Charge for Credit set out under the headings "Key Financial Information" and "Other Financial Information" in this agreement that the first instalment will be paid 30 days after the loan is made. If it is actually paid more than 30 days after the date that the loan is made, there will be additional interest to pay on the loan in respect
of the additional number of days for which the loan is outstanding as a result. We will notify you of the additional amount of interest and when it is payable.The loan was drawn down on 4th October 2002. All payments were made by direct debit. My gripe is that Egg didn't actually take their inital payment until 1st December. It wasn't made clear when we applied for tha loan that interest for the period 4th November (30 days after drawdown) to 1st December would be applied, and only at the very end of the agreement, thus accruing over the entire 5 years! As they have control over when they take the direct debit, this clause seems to be a blank cheque!

Has anyone come across this before, and is there anything I can do?

Thanks!

grumpy_grizzly_2

Can anyone help?

jonesMUFCforever

Why are you asking now and not at the start of the loan.
It seems to me that you were advertised of this in your T&C.

It may be worth your while sending a secure message to Egg to see if someone will look at your complaint - you never know they might compromise