Egg Card - Fine and interest putting me over the limit

byb3

Hi,

I have an egg card with a £600 limit. The balance was at roughly £582 when they decided to add-on an overlimit fine of £16 and the interest on the same day to put me on £607. Will I be classed as being over the limit and due another £16 fine? If I am I will be absolutely livid!

Thanks,

jonesMUFCforever

They would have only charged you £16 if you had been over your limit at any time in your statement period.
I believe that they will charge you again.

You need to find out the reason the first £16 has been taken.

runicfire

If your balance was lower than the limit to begin with, then what was the charge for?

Was it the interest that triggered the fee?

These fees are great.....Natwest recently lowered my Credit card limit by £100, which put me over the new limit by £5. Then comes a overlimit fee, lol. Nice.

byb3

I probably wasn't clear. I knew of the original overlimit fee (although that was over 7 weeks ago now). It just seems that they've added it onto my balance when its at its highest as to purposely put me over the limit and thus create a new fine.

runicfire

I don't think they would have added it on deliberately, but then again I wouldn't put anything past them for the sake of making money.

Its possible the fee was added at the next statement date, which would have been unlucky for you as it pushed you back over (and yes, they'll probably add another fee on now) although 7 weeks seems a long time, thought the statements would be once a month.

DifferentFromTheNorm

Egg apply overlimit charges on the day they produce your statement.

Now that your limit has been exceeded again they will apply another charge next month, as the balance 'carried over' into this statement period was over the limit.

You need to make at least the minimum payment, + £16 + the estimated amount of interest to go onto the next statement to ensure it doesn't happen again.

In addition to that you'll also need to make sure you don't use the card again for a couple of months.

xathras

When i was a student I was finding my self in this circle regularly with Egg.

If you haven't claimed back your charges from them before then I suggest you do but as DifferentFromTheNom has advised you us the following formula:

Min Monthly Payment +£16+Estimate Interest Amount for Next Month

You Min Monthly Repayment will be 2%. This is calculated using

0.02 * 582 (balance amount) = 11.64

and your estimated interest amount for next month will be roughly £8 or so.

(Interest Rate / 12) x Balance

If your interest rate is 15% then the formula would be

(.15 / 12) * 582 = £7.28

So therefore you would need to pay at least

£11.64 + £16 + £7.28 = £34.92

This will ensure you are paying and are not at risk next month.

DifferentFromTheNorm

xathras wrote: »

When i was a student I was finding my self in this circle regularly with Egg.

If you haven't claimed back your charges from them before then I suggest you do but as DifferentFromTheNom has advised you us the following formula:

Min Monthly Payment +£16+Estimate Interest Amount for Next Month

You Min Monthly Repayment will be 2%. This is calculated using

0.02 * 582 (balance amount) = 11.64

and your estimated interest amount for next month will be roughly £8 or so.

(Interest Rate / 12) x Balance

If your interest rate is 15% then the formula would be

(.15 / 12) * 582 = £7.28

So therefore you would need to pay at least

£11.64 + £16 + £7.28 = £34.92

This will ensure you are paying and are not at risk next month.

The OP should have a DD in place for at least the minimum payment, as Egg require one to be in place. So they can just let the DD call for the min payment part.

For an accurate 'estimated interest' figure then the OP just needs to check their latest statement, it'll be quoted towards the bottom.

If a DD is in place for the min payment and it goes through then all that needs to be paid is £16 + whatever the estimated interest is.

They can of course pay more if possible, which would be the best thing to do. If the OP isn't able to pay anymore then the most important thing is not to use the card again for at least a couple of months.

DestroyingAngel_2

I've been with Egg since they started. I began with £1000 credit limit, then within 3 years, they'd raised it to £10000! I now have about £3000 owing on it, as I've been using it to pay for eBay stuff. I have it set to pay the minimum amount, but after paying the interest alone, I'm only scratching away the capital by about £10 each time!