"Minimum Finance Charge" on empty Egg Card?

THX

I have had £0 on my Egg Card since the middle of October. On checking my Egg accounts through the Egg Money Manager I noticed that I have 50p debit on my Egg Card.

On closer inspection it's listed as a "Minimum Finance Charge".

My question is: Do they charge this every month even when there is no debt on the card? If so it's getting cancelled pronto:mad:

jonesMUFCforever

If your card was not cleared of all outstanding balance then interest is charges from the date of your statement until you repay.
How many days from your October statement to when you paid?
This in your case might have been a few pence but Egg charge a minimum of 50p.

Mozette

They shouldn't! Did you have a balance/interest charge on the previous statement? If so it could be the interest on this. If this doesn't apply do query it with them, you may well get it refunded (I did!) as it's 'a computing error'.

THX

The statement date is 12th Oct to 12th Nov. I payed off the balance on 16 October.

jonesMUFCforever

When was the payment received by Egg?
You would have been charged interest from the 12th until it was received (assuming that you did not clear it entirely the previous month).

As I said it might have been only a few pennies but Egg round it up to a minimum of 50p.

benf90

Mozette wrote: »

They shouldn't! Did you have a balance/interest charge on the previous statement? If so it could be the interest on this. If this doesn't apply do query it with them, you may well get it refunded (I did!) as it's 'a computing error'.

Either something unusual happened for you or you dealt with somebody that was new etc as the minimum finance charge isn't a computing error.

As somebody else explained, it's the minimum amount of interest Egg will apply to a card each month. And to answer one of the original questions... no, it won't be charged every month.

It is only applied whenever any interest has accrued. If your balance stays at zero then you shouldn't have any more applied (as long as the payment for the 50p is cleared on time)... unless you had cash interest accruing on your card, in which case you will probably get one further 50p charge applied.

fonant

I too have had two unexplained 50p minimum finance charges applied to my account. I pay my account off in full each month, and at the time had no outstanding cash advance interest, and no balance transfers or zero rate items.

So far, even after many secure messages, Egg have failed to explain the charges. :wall:

They say that the "minimum finance charge" "reflects the physical cost for us to apply interest to accounts", which makes me worried. Perhaps they use people to calculate the interest, not computers?

[Egg have admitted that interest was wrongly applied for a later cash advance, and have refunded me the amount I was over-charged. Good that they've refunded me, Bad that they needed to!]

missile

I would close the account. Banks should not make "mistakes". It costs you time and money and if you do not get a timely satisfactory response, vote with your feet.

I am not aware of anyone else who has a minimum interest charge?

jonesMUFCforever

missile wrote: »

I would close the account. Banks should not make "mistakes". It costs you time and money and if you do not get a timely satisfactory response, vote with your feet.

I am not aware of anyone else who has a minimum interest charge?

I know Egg and Halifax charge a minimum interest fee.

YorkshireBoy

ejones999 wrote: »

I know Egg and Halifax charge a minimum interest fee.

...and Barclaycard have a minimum interest charge of £1.

neilp

Egg have done the same thing to me. The refunded it immediately when I pointed out the error. Nonetheless, I am in the process of closing my accounts with them. They were good for several years but there have been too many customer service blunders recently. Even closing the accounts has been more difficult than it need to be. I made the request 2 months ago and it hasn't happened yet!