Egg Policy Change ?

Niksan

Obe_one wrote: »

There won't be any damage done to peoples credit files, it will just show that an account has been settled. It doesn't show if the account has been terminated so it won't have any detrimental effect.

I guess if you got the letter or not, if you so happen to settle an account with Egg early March, I'm sure other banks etc would kind of 'hmmmm' with that on your credit report.

DifferentFromTheNorm

Niksan wrote: »

I guess if you got the letter or not, if you so happen to settle an account with Egg early March, I'm sure other banks etc would kind of 'hmmmm' with that on your credit report.

It won't show as 'settled' until the balance has been cleared off in full. So, the accounts will show as settled at different times, no bank or even the credit reference agency themselves will be able to see (or guess accurately) who closed the account and why.

Obe_one_2

Niksan wrote: »

I guess if you got the letter or not, if you so happen to settle an account with Egg early March, I'm sure other banks etc would kind of 'hmmmm' with that on your credit report.

Lenders don't examine your credit file in such greater detail as that.

Checking your details noticing an Egg account was closed in March and linking that with the account terminations just won't happen.

Niksan

Sorry, I should have been more verbose, I know that some people who will have a lot still outstanding come march, I'm thinking more about the people who have stagnent accounts with 0 on them so would pretty much close straight away at a guess, hence me saying about someone who settled who didn't get a letter, maybe out of disgust, we've already had a couple in this thread alone who have done so..

YorkshireBoy

Obe_one wrote: »

Checking your details noticing an Egg account was closed in March and linking that with the account terminations just won't happen.

Provider names are not displayed against the data passed to the organisation searching your file.

So all those expressing concern can stop worrying now.

DifferentFromTheNorm

Niksan wrote: »

Sorry, I should have been more verbose, I know that some people who will have a lot still outstanding come march, I'm thinking more about the people who have stagnent accounts with 0 on them so would pretty much close straight away at a guess, hence me saying about someone who settled who didn't get a letter, maybe out of disgust, we've already had a couple in this thread alone who have done so..

I can understand where you're coming from. But, in all honesty the majority of those talking about moving away from Egg that haven't been affected by the letters seem to be talking about withdrawing savings.

Considering the number of people who use and will be applying for credit vs the number of people who will close Egg credit cards around this sort of time it's probably such a small percentage that it becomes rather insignificant (in terms of specifically looking for that on people's credit files).

Niksan

Obe_one wrote: »

Lenders don't examine your credit file in such greater detail as that.

What do they check ? I mean, if some lender checks your credit file and you get declined because you have one to many cards already, is there any reason lenders won't disclose this so you can sort it out, it's not as if it's info like, we don't think you earn enough so you can lie and say you earn more, always been curious about this when I got turned down for capital ones lower rate platinum type card, I wrote a letter back asking why, so if there were problems with my history I could try resolve or rectify it, but they wrote back and just said we reviewed your application, you can have our lower rate, which really didn't help me either way or help me work out how anything works but I totally understand lenders can cherry pick what they like.

moneywolf

I have just closed my account the day before this news broke, the apr at 22.9 % is just too dam greedy compared to my amex 8.9% & my capital one 6.9%

They also ripped me off on a cash back offer they sent through offering 1 % on all spending so i went on a 2k spending spee & got given 13p cash back :mad: .

So i have decided also to ditch my BOS platinum as that is 15.9 % & i think barclaycard my go the journey as well even though it was 0% for forever on balance transfers.

silvercar

what happens to cashback? normally this is only paid out on the anniversary of the account opening. If the account is closed before this date do you lose any cashback you have built up?

DifferentFromTheNorm

silvercar wrote: »

what happens to cashback? normally this is only paid out on the anniversary of the account opening. If the account is closed before this date do you lose any cashback you have built up?

I'm not sure who told you about cashback being applied in the anniversary month as it's not.

For Egg Money it is paid in March. Egg Card is paid in September.

Egg Money is usually paid directly into the Egg Money account. But, for those whose accounts are closed they will keep the cash back but it will be paid directly into their bank account (as long as they accrued the minimum £5)

For Egg Card, I'm not sure. Presumably it will be the same rules (ie paid into their bank account). It's always been paid to the external bank account for the Egg Card so nothing is different there. However, the cash back is only 0.1% on that card (if application was done before Oct 2001 - after that date its no cash back).

For Egg Money the minimum cash back that has to have accrued is £5. For Egg Card it is £10.

To have earned £10 cash back on Egg Card they will have had to have spent £10,000 since September. I can't really see there being too many Egg Card customers that meet all those requirements that have had their cards closed.