Egg Money - overspending charge

nrishiraj

Hi

I currently have an egg money and Tesco credit card.

I've recently been using both credit cards daily and the other day, they were both frozen and I couldn't purchase anything using the cards. The egg money card charged me £16 for overspending, but Tesco credit card didn't. (I'm a high purchaser)

Why do credit cards companies put a freeze on the card? Its really unfair that egg charged me £16, its not like I went into an overdraft.

Shall I call Egg and reclaim the charge?

Another issue is that I want to increase my Egg credit limit from £600 to £1,000 and I've been refused, even though I pay my balance of full every month.

Thanks

benf90

If you've had an over limit charge then you've, well... gone over the credit limit.

Whether the charges are fair or unfair is a topic that's been covered many times before so I won't go into that. However, when you use a credit card to buy things you're effectively using their money, paying them back later. The charge is there because you've spent more of their money than they said you could.

They could stop that from happening of course but as I said that has been discussed many times before, and companies now put all the emphasis on managing accounts ourselves to avoid charges.

Call them to request a refund if you want to. You don't need to ask anyone here whether or not to do it, it's something you have to decide for yourself. However, you need to take steps to stop it from happening again in the future.

The 'freeze' on the card is them most likely declining transactions to prevent you from going even further over the credit limit.

The Egg Money account almost always has low limits, as it's marketed to be run with a credit balance and not like a traditional credit card. It can be used like a traditional credit card if you want to, but you need to ensure you stay within the credit limit they set.

If a £600 limit isn't enough to cover your spending during the month then you can always make 'additional' payments to the card to make sure you stay within the limit.

Details of how to make extra payments can be found here:

http://new.egg.com/visitor/0,2388,3_79766--View_1709-bID_EMonMovingFAQ-dva_1,00.html

Nomad25

Yes agree with benf90. One more option ,if they refuse to up your limit, suppose you could apply for another cashback card. Egg Money are notorious for being iffy about upping limit.

netlang

Egg are terrible at increasing the credit limit. I had £35K in their savings account and requested a credit limt increase from £5.6K to £8K and they turned me down

Grade_A_Reject

I've got £10k+ split between an Egg ISA and Online saver and they won't increase mine past £1000 limit. I've stopped using it for that reason.

My monthly spend on the card was often more than my limit and making top-ups throughout the month was a pain in the a$$ especially as their clearing system is so slow. I went over my limit once and they offered to waive it as a "goodwill gesture" when I phoned them.