Thread: Egg issued me a new card even though agreement is terminated!

Hi, I wonder if this has happened to others? I was one of those people who had their Egg card terminated in January 2008. I have been repaying the balance off - but have noticed that although the balance has decreased, the minimium monthly payments have increased? Also, a few weeks ago a brand new Egg card arrived through the post... I initially thought that Egg must have had a change of heart, but to no avail. I was unable to activate it due to the 'termination of my account'. Why send new cards out to people, when they cannot use them? Plus on my credit report it states that my Egg account is active? I'm confused!

This will not have been a mistake, do not let it deflect from the fact that you have no contract with them.

It is an interesting little trick.

So what shall I do now? I have been reading the Egg forums with great interest! Do I have a contract with Egg still or not?!

If you received a letter terminating your agreement, and you haven't subsequently signed a new one, then no you do not have a contract with them.

Or at least that is how I see it. I must stress, I am no legal expert.
However, the terms "terminating agreement", or "ending agreement" seem rather unambiguous, with little possibility of mis-interpretation.

I would take legal advice on this.

Plus on my credit report it states that my Egg account is active?

It will still be active if you owe them money.

Thanks for your advice. I have to tell you that I e-mailed Egg to ask about why I couldnt activate my new card that they sent and the reply was...

'Your unable to activate your card as your agreement has been terminated. We sent you a letter dated 29 January 2008 informing that your agreement was being terminated and that your account would become a repayment only facility from 6 March 2008. For this reason you unable to activate your card as you can't use it.

Thanks for your message.

Regards

~~~~~~~~~~~~
Internet Customer Services

it does make me wonder why, if it has changed to a repayment only facility I am being charged over £80 a month interest!

You'll be being charged at the same rate of interest as the card was I assume. Is that correct?

Originally Posted by stuart0161

Thanks for your advice. I have to tell you that I e-mailed Egg to ask about why I couldnt activate my new card that they sent and the reply was...

'Your unable to activate your card as your agreement has been terminated. We sent you a letter dated 29 January 2008 informing that your agreement was being terminated and that your account would become a repayment only facility from 6 March 2008. For this reason you unable to activate your card as you can't use it.

Thanks for your message.

Regards

~~~~~~~~~~~~
Internet Customer Services

it does make me wonder why, if it has changed to a repayment only facility I am being charged over £80 a month interest!

If you didn't sign a new agreement, you have no facility with them as they terminated your agreement.

This is assuming it is the same letter as was posted on the other thread.

Yes, it was the same letter as was posted on another thread. I am very interested to see how this Egg situation develops!

Suggest you print off the secure message as they disappear after x days and Egg never provide them in SAR requests. This proves that they still consider the account to be terminated, even though they have sent you a new card and you have tried to activate it.

rory32 - the answer to your question about interest rates is that Egg worked out whose accounts they were going to terminate and racked up their interest rates just before the termination. The customers that they wanted to keep remained on the same (lower) interest rate.

Thanks for your replies. I actually sent Egg a message yesterday via the secure messaging service asking why they sent me another card, when I couldnt, quite clearly activate it. I also asked why my balance was reducing yet the minimum amount I was paying was increasing! They responded very quickly today. This is what they said...


The card may have been sent out automatically if it was due to expire or if you requested one, although you are unable to use the card you may require a copy of the card and/or its details for your own records, therefore we still issue the cards on terminated accounts. There's never a good time to tell customers that we're increasing their payments but the minimum payment calculation was changed to ensure that your monthly minimum payment would always cover at least that month's interest in accordance with Banking Code condition 10.13. This change was communicated to all Egg Card customers in October 2008. Any increase in your minimum payment will mean that your balance is reduced faster. By clearing more of your outstanding balance, your subsequent minimum payments will slowly reduce. Please copy and paste the link below into your web browser and go to section 2 to view the new definition of the minimum payment. new.egg.com/visitor/0,,3_1087--View_1068,00.html Egg Banking plc is authorised and regulated by the Financial Services Authority and subscribes to the Banking Code, copies of the code are available on request. For further information or to view the Banking Code visit BBA – British Bankers' Association - Home Interest is still being charged on your card because the terms and conditions of the account haven't changed only that we are no longer offering the credit facility to you. Borrowed funds will continue to accrue interest at your standard rate until the balance is paid in full, at which point the card will automatically close. If there's anything further I can help you with please don't hesitate to contact me. Regards Debra KempInternet Customer Services

What do you think about this!!? I have printed it off for my records!

If they are no longer offering you a credit facility - then the service has been withdrawn, and no contract exists.

I can't believe Egg think they can do this without being challenged!!!