Egg cracks down on bad customers

[TheDean]

Originally Posted by Anyfin

If they end the agreement with you, do they stop processing data and adding on interest, or does this continue?

This will continue - the card will just become 'payment only'

[Anyfin]

Well that sucks. I'd have thought that once the agreement ended, it would only be fair to end the terms of those agreements too.

Egg can have their cake and eat it then.

[hellhasnofury]

Originally Posted by Anyfin

Well that sucks. I'd have thought that once the agreement ended, it would only be fair to end the terms of those agreements too.

Egg can have their cake and eat it then.

Well being the devil's advocate, If I had received this letter, telling me that they were ending the agreement. I would immediately send them a section 77/78 request under the cca.

I would be interesting to see what they came up with, and if they could not supply it, MMMMm. It would open up a whole new can of worms for them, and with 160,000 credit agreement to find, it would give them loads of extra work to do

[Anyfin]

Almost makes me wish I had an Egg card

[Mistermind]

BBC NEWS | Business | Egg customer anger at credit move


Finance, Investments n Trading: Egg Card Withdrawal – Cardholders angry at Egg card’s decision


Have you had your Egg card cancelled? If so, have you ever missed ...

"VOTE NOW
Have you had your Egg card cancelled? If so, have you ever missed any payments?

The results:

Yes - 70%
No - 30%

Thank you for voting. Total votes 401"


Read the report: Egg withdrawal will 'benefit' borrowers

Have your say: Tricks from Egg, and more on why they are cancelling 160,000 credit cards

The original story: Egg to block 160,000 credit cards

[Bob_and_Wendy]

Hi both my hubby and I had these letters today and always pay our minimum payment on time, be it that we are both on our limits near enough. Does anyone have any advice on what we can do?

What is a section 77/78 request under the cca?

Can I get the interest frozen?

many thanks

Wendy

[Gismocat]

just joining in as Id love to know if there is anythng that can be done with the interest?

[Gismocat]

ok so this is what I found:

There is a reason for this. The Consumer Action Group Forum have been revealed that most lenders have failed to have the customer sign a "Consumer credit Agreement" and are thus breaking the law by charging for credit and demanding repayments. The lack of the CCA carrying certain precribed terms (not an application form) means that 99% of these debts are unenforceable in court.

If you ask your lender for a copy of your CCA, they are comitting a crimminal offence if they don't supply it in 30 days. Egg did everything over the net and sent the customer an application form which was signed and returned. Those applications are worthless as cca's as they don't contain the prescribed terms.

Egg customers with debts will be offered a new loan at a cheaper rate than the card which has been taken away from them.....and of course they will now be sure to include all the terms prescribed by the consumer credit act and the debts previously worthless had the debtor cottoned on to it, are now fully enforceable!

That is the reason.

Any comments from people in the legal know how of what we can do?

[hellhasnofury]

Originally Posted by Gismocat

ok so this is what I found:

There is a reason for this. The Consumer Action Group Forum have been revealed that most lenders have failed to have the customer sign a "Consumer credit Agreement" and are thus breaking the law by charging for credit and demanding repayments. The lack of the CCA carrying certain precribed terms (not an application form) means that 99% of these debts are unenforceable in court.

If you ask your lender for a copy of your CCA, they are comitting a crimminal offence if they don't supply it in 30 days. Egg did everything over the net and sent the customer an application form which was signed and returned. Those applications are worthless as cca's as they don't contain the prescribed terms.

Egg customers with debts will be offered a new loan at a cheaper rate than the card which has been taken away from them.....and of course they will now be sure to include all the terms prescribed by the consumer credit act and the debts previously worthless had the debtor cottoned on to it, are now fully enforceable!

That is the reason.

Any comments from people in the legal know how of what we can do?

Hello,

Can you post up the link where you found this information please

[Gismocat]

Egg acts over 'risky' customers. - Topic Powered by eve community

about 3/4's of the way down

[brinny]

just thought id add my posting from another thread here so here it is

Got my letter today. Just looking over this issue, if Egg end your agreement as it is stating that is it doing on 6 march, how can they say

"20.2 We can end this Agreement at any time. We will normally give you 30 days' advance notice by post or email. However, if there are exceptional circumstances, or in any of the circumstances referred to in Condition 19.2, we may end this Agreement immediately and tell you about it afterwards, unless we are required by law to give you notice first. You can end it at any time by telling us to do so by post or email. In both cases, this Agreement will continue until you have repaid all amounts you owe us."



Either they are ending or there not. If as it does state in there letter, they are ending your egg card agreement, what grounds do they have to taking this through the litigation stage. As no agreement (Ended by them) no case as every one on this site keeps stating. So can they have their cake and eat it too.

All advice welcome...

[Mistermind]

Originally Posted by Bob_and_Wendy

Can I get the interest frozen?

many thanks

Wendy

Egg interest compounded monthly is at a higher rate than bank loans. Cardholders consented to accept Egg's debit interest agreement as part of a package including privileges of charging purchases to plastic with a certain number of days interest free, cash advances, insurance on purchases etc.

If the card company unilaterally decided, without misbehaviour on the part of cardholders, to withdraw privileges which were part and parcel of the original package accepted as a whole by the cardholder, then by the principle of reciprocity the cardholder ought to be allowed to withdraw his previous consent to pay high credit card interest rates now that he is denied the privileges of using a credit card -- privileges itemised in the original signed agreement.

I.E. if the card company decides to withdraw privileges, they ought to reduce the interest rate which was part of the bargain.

[Gismocat]

does anyone know if there is anything in the consumer credit act that would help us? I know we originally agreed to the terms but in my eyes its simply a loan now at a stupidly high rate and I wont let them get away with it after how they have treated us!

[Mistermind]

Reclaim by a bank customer for contractual interest accrued on unlawful penalty charges was dismissed in one High Court case last year. The judge would not allow the principle of mutuality and reciprocity to apply to the case, when there was no clause in the signed contract explicitly saying in layman's terms:

"If the customer owes the bank then the bank charges the customer X % compound interest per month as agreed. But if the bank made a mistake and overcharged the customer then the bank owes the customer the same rate of interest acruing on the mistaken overcharging for the duration of the mistake."

In the case of Egg Card, probably best to pore over the agreement to look for evidence of coupling between interest terms acceptance by cardholder and service provided by Egg. If there is an explicit or implicit condition, then when said service is withdrawn the continuing high interest rate would be without foundation. My Egg Card was closed long ago, perhaps someone with live documentation could check the wording, and the wording in Egg brochures.

[Gismocat]

have had a good look through Egg Card credit agreement and I cant see anything

[Mistermind]

Originally Posted by Gismocat

have had a good look through Egg Card credit agreement and I cant see anything

20. Ending this Agreement

20.1 If you are not happy about your choice of Account, let us know within 14 days of sending your completed Agreement back to us and we will cancel your Agreement. If you want to cancel your Agreement then you should call us on 08451 233 233. You can also write to Egg Account Servicing, Point North, Waterfront West, Dudley, DY5 1LU, or you can send us a secure email from our website. You should quote your Card number in all correspondence. If you cancel your Agreement, you must repay what we have lent you, and pay all interest and charges applying before cancellation, taking into account any amounts you have already paid to us, within 30 days of cancellation and must cut in more than two pieces and throw away all the Cards we gave to you or an Additional Cardholder. If you do not cancel your Agreement, your Account will remain open until your Agreement is ended in accordance with this Condition 20. You may have extended cancellation rights in certain circumstances. If you do cancel your Agreement, and you exercise those rights, you will still have to pay everything you owe us for the period up to cancellation, including interest and charges.

20.2 We can end this Agreement at any time. We will normally give you 30 days' advance notice by post or email. However, if there are exceptional circumstances, or in any of the circumstances referred to in Condition 19.2, we may end this Agreement immediately and tell you about it afterwards, unless we are required by law to give you notice first. You can end it at any time by telling us to do so by post or email. In both cases, this Agreement will continue until you have repaid all amounts you owe us.

20.3 We can end this Agreement early by giving you notice in writing if you seriously or repeatedly fail to meet your obligations under any other agreement you have with us and as a result:

• we give you notice ending that agreement; and
• we reasonably believe that you will fail to meet your obligations under this Agreement in a serious way.

This Agreement will continue until you have repaid all amounts you owe us.

20.4 Any benefit or services we provide will end when you give us notice or when our notice is effective unless the terms of the particular benefit or service state otherwise.

-----------------------------------------------------------------------
"20.2 We can end this Agreement at any time."
"20.3 We can end this Agreement early by giving you notice in writing if you seriously or repeatedly fail to meet your obligations under any other agreement you have with us and as a result..... "

These two Egg clauses appear to be contradictory, one says end of agreement is unconditional, the other says it is conditional on misbehaviour on any agreement within the Egg group of companies. The end of 20.3 further compounds the confusion by saying: "this Agreement will continue until you have repaid all amounts you owe us." -- i.e. the agreement is both ended and continuing.

The only reference to interest accrual (the absence of same) after termination appears to be clause 20.1 referring to the obligation upon card cancellation within 14 days of Egg Card take-up:

"and pay all interest and charges applying before cancellation, ........within 30 days of cancellation ......................... .. If you do cancel your Agreement, and you exercise those rights, you will still have to pay everything you owe us for the period up to cancellation, including interest and charges."

If this clause could be adduced for cancellations and terminations in general, then interest non-accrual post termination might be justified. If this condition by analogy cannot be upheld in court, there would still be the argument on grounds of equity and reciprocity, i.e. regardless of whether the agreement is terminated, the financial service is terminated.

That if a restaurant ceases to serve meals, it can hardly present a stiff bill charging for the absence of service. No doubt the forum's legal experts would offer an informed opinion.

Good luck to all affected.