Condition changes from Egg

[Dani]

I have received an email today from Egg stating the following:

At Egg we want to treat customers as individuals both in our approach to service and the products we offer. In line with this, we are now personalising the interest rate on your Egg Card.

We have taken into account how you run your Egg Card and your relationship with us. This means for some customers, including you, the interest rate on your card will increase. In addition, there is a change to the cash handling fee which applies to all customers.

It's important for you to understand what these changes mean to you, so please read the following information carefully.

Changes effective from 8 September 2006
We're increasing the standard variable interest rate you pay on purchases, balance transfers and cash advances. This affects Conditions 3, 4.1, and 6 of your agreement. The new rates come into effect from 8 September 2006 and the changes are as follows: 3 – we're increasing the APR on your card from 15.9% to 21.9%.4.1 – we're increasing the variable annual interest rate you pay on purchases and balance transfers from 15.9% to 21.9% and for cash advances the variable annual rate increases from 20.9% to 24.9%.6 – the illustration has been changed to show that if you make a Purchase of £1,500 and then repay in 12 equal monthly repayments the interest to be paid would be £167.43 due to the increased interest rate. As this example is based on a set of assumptions, this does not reflect your actual interest payments.Change effective from 8 October 20067.2 – the handling fee of 2.5% of the amount of each Cash Advance (minimum fee £2.00) is increasing to 3% (minimum fee £3.00).
So effectively, because I use my card more, (and make them more money along the way), they are putting my interest rate up a hefty bit!

So basically, they are making it worse for people (like myself) who are in a bit of debt and are trying their hardest to get out of it, by making us pay even more a month.

[cantsay]

Its the way things are going I'm afraid.With the recent BOE rate rise all the lenders and credit card companies use it as an excuse to start putting their rates up.0% deals will start to be much harder to come by, of course ,apart from the people who pay off their balance each month, but then again these people have no need for it!

[Dani]

Its just the way they say they are working interest rates out on an individual basis now. I think its disgusting. That's not the bloody contract I signed.

They send messages and phone calls stating they're looking to help you out if you are in financial trouble and all you need to do is talk to them about it, and then they turn around and put your interest rate up because they've looked at you on an "individual basis". Its really riled me!! plus the fact that I'm pis(ed off with work today, and this has just made me worse!!!

Rant over!!

[telewest]

This makes me absolutely F*ing furious.

I was chatting to a friend who has a substantial credit line with Egg, and always 100% pays in full on time each month, and in 5 years has never exceeded his limit.

He runs the account absolutely 100% perfectly yet his APR has gone up (and mine) from 15.9 to 21.9%

How Dare Egg pertain these charges relate to a "personalised look at your account management" when really its just to recoup their fees now they've lowered their unfair disproportionate charges.

Egg make me absolultely sick to the stomach

[angry cat]

Hey Guys, This is called 'International Default' in the USA. One of MBNA's tricks, do a Google wordwide websearch on MBNA credit card interest rate hike and all will be revealed. Here in the UK it is called Risk based repricing, meaning the Egg credit card interest rate is assessed by Risk. If you even miss one payment, they will jack up your rate...Yet another method of making even more money out of the consumer. There is a campaign to ban this practice over the pond. I am going to post a thread on the Egg forum about this subject and there will be a intersting pdf file to click on re: The Pru who of course owns Egg. Keep the Faith - Love Angry Cat

[seaweasel]

Swines. I've been bumped up from 15.9 to 19.9. I really want to get my balance transferred.

[Les Gunn]

My APR has increased from 15.9 to 16.9% - Purchases and Balance Transfers by the same - Cash advances from 20.9 to 22.9% - Cash Advance minimum fee up to £3.00.

THE CHEEKY MONEY GRABBING B*$^"*DS!!!!

Personally, I think it should be outlawed. If you go to McDonalds, their Menu does not discriminate because you have a better/worse financial standing does it? Or if you go to the cinema, you don't only get to pick from the poorly rated movies if you are a lower social class - EVERYONE GETS THE SAME TREATMENT!

If Egg want to introduce this "financial based division class" then it should only apply to NEW customers wishing to join, not those already with them!

Can you tell i'm fuming??!

Mind you, some of the people experiencing 6% hikes, I think a few will be moving asap!