Egg credit card agreement terminated

[BlueSquirrel]

They have already told me they don't have my agreement. They said the FSA don't require them to keep it. What a load of @$*&!

[phatram]

Please get in touch.

 

Customer reference: xxxxxxxxxxxxxx

 

Dear Mrs P

 

Please contact us immediately on 08456 000 296. Were open 8am to 9pm Monday to Friday, Saturday to Sunday 9am to 6pm.

 

If youve already spoken to us today, please ignore this e-mail.

 

Please don't reply to this email as it's an automated message.

 

Yours sincerely

 

 

Collections Department

Egg Banking plc

 

 

 

 

Secure message again.

They said this cannot be discussed by secure message or email.

Edited March 13, 2009 by phatram

[BEC01]

Quick update.

 

An Egg employee has agreed verbally that they have cocked-up on this and indeed the termination letter did mean that there was no contract in place.

[basa48]

Quick update.

 

An Egg employee has agreed verbally that they have cocked-up on this and indeed the termination letter did mean that there was no contract in place.

 

Be nice if they would put that in writing !

 

What is your latest situation with your action over this (PM if you like ;-) )

[BEC01]

Be nice if they would put that in writing !

 

What is your latest situation with your action over this (PM if you like ;-) )

 

Don't think that is likely.

 

Lawyers are awaiting response from Egg.

It would seem that they don't have an active legal department.

[basa48]

Don't think that is likely.

 

Lawyers are awaiting response from Egg.

It would seem that they don't have an active legal department.

 

Do you mean no active legal department or just that the one they have is ineffectual ?

[BEC01]

Do you mean no active legal department or just that the one they have is ineffectual ?

 

You are free to make your own interpretation.

 

[basa48]

You are free to make your own interpretation.

 

 

Well I suppose whichever the result is the same !

 

PS: I'm still awaiting Egg's reply to my 'dispute' letter in which I mentioned the 'termination' letter as well as 'approved limit' and 'charges on default'.

Edited March 15, 2009 by basa48
added ps:

[BEC01]

Well I suppose whichever the result is the same !

 

PS: I'm still awaiting Egg's reply to my 'dispute' letter in which I mentioned the 'termination' letter as well as 'approved limit' and 'charges on default'.

 

They are stuck on the termination letter.

They don't know how to defend it, and are thinking hard.

[BlueSquirrel]

They are stuck on the termination letter.

They don't know how to defend it, and are thinking hard.

 

I thought I could smell something funny - a bit like dust burning off an electric fire that hasn't been on for a while

[BEC01]

Had another contract lawyer look at the termination letter today.

We have three opinions that the letter breaks several areas of contract law.

 

Will not go into any details - for obvious reasons - we await the Egg to respond.

 

[basa48]

Had another contract lawyer look at the termination letter today.

We have three opinions that the letter breaks several areas of contract law.

 

Will not go into any details - for obvious reasons - we await the Egg to respond.

 

 

Could be a while me thinks.

 

Hope you can give us some pointers when the time is right.

[BEC01]

Could be a while me thinks.

 

Hope you can give us some pointers when the time is right.

 

I don't think we will get a response from them.

We will give them until end of March to respond.

[basa48]

I don't think we will get a response from them.

We will give them until end of March to respond.

 

Hmmmm ... 'basa48' wonders what your next move might be if they don't respond !!

 

(Don't tell me on open forum ;-) )

 

This is getting interesting.

[egg_nog]

Hi

 

Been reading this thread with some interest after a quick search on google for 'Egg Card terminations' as I wanted to know if anyone had taken Egg to court following the mass terminations last year.

 

My O/H received a letter from Egg a few days ago (dated 6th March)

saying the following so looks like another lots of customers cards have been 'ended' !

Just to confirm he has never missed a payment and is not in default.

He recently asked for an increase in his credit limit and was refused!!

He is now gobsmacked at recieving this letter.

 

Letter from Egg:-

 

Your Egg Card will not be renewed.

 

Dear Mr XXX

 

At Egg we are committed to being a responsible lender and review credit card accounts in the period prior to the expiry date of the current card.

 

Following a review we have decided not to issue a replacement when your current card expires and to end your credit card facility.

This decision also applies to cards issued to any additional cardholder.

Please be advised that this means after the expiry date you will not be able to use your account and any regular payments such as monthly subscriptions will not be paid. You should contact your service provider to arrange cancellation and alternative means of payment.

 

If you do have a balance outstanding on this account you will have to continue to pay at least the minimum payment required under your Card Agreement each month until any debit balance on the account is repaid in full. The Card Agreement continued to apply until the balance is repaid in full.

 

If you'd like to discuss this letter, or your account, you can contact our Customer Services Team on 08451 233 233

 

My O/H did call Egg initially asking why they have done this and they just kept saying it is a company decision due to the credit crunch!

Is this a replay of last year or is it damage limitation do you think?

 

I am waiting to see what happens before I raise a dispute with them myself now.....

Edited March 17, 2009 by egg_nog
sp

[basa48]

Is this a replay of last year or is it damage limitation do you think?

 

A bit of both, trying to reduce outgoings whilst maximising incomes.

 

The have subtly changed the wording of this new 'termination2' letter to more comply with the CCA.

 

I think all they are achieving is a bad name for Egg.

[militantconsumer]

Stange that Citi paid £575 million for Egg in 2007, and now seem to be winding the business up!

 

egg_nog - you could make a complaint to the Financial Ombudsman Service if you wish.

[thekat1979]

I'm still waiting for them to send me a copy of the termination letter I was sent last January - bet you ANY money that I end up with one of the new style ones. Shame I haven't got a copy of the original.

[phatram]

Make one then.

Banks do it all the time.

[BEC01]

Hi

 

Been reading this thread with some interest after a quick search on google for 'Egg Card terminations' as I wanted to know if anyone had taken Egg to court following the mass terminations last year.

 

My O/H received a letter from Egg a few days ago (dated 6th March)

saying the following so looks like another lots of customers cards have been 'ended' !

Just to confirm he has never missed a payment and is not in default.

He recently asked for an increase in his credit limit and was refused!!

He is now gobsmacked at recieving this letter.

 

Letter from Egg:-

 

Your Egg Card will not be renewed.

 

Dear Mr XXX

 

At Egg we are committed to being a responsible lender and review credit card accounts in the period prior to the expiry date of the current card.

 

Following a review we have decided not to issue a replacement when your current card expires and to end your credit card facility.

This decision also applies to cards issued to any additional cardholder.

Please be advised that this means after the expiry date you will not be able to use your account and any regular payments such as monthly subscriptions will not be paid. You should contact your service provider to arrange cancellation and alternative means of payment.

 

If you do have a balance outstanding on this account you will have to continue to pay at least the minimum payment required under your Card Agreement each month until any debit balance on the account is repaid in full. The Card Agreement continued to apply until the balance is repaid in full.

 

If you'd like to discuss this letter, or your account, you can contact our Customer Services Team on 08451 233 233

 

My O/H did call Egg initially asking why they have done this and they just kept saying it is a company decision due to the credit crunch!

Is this a replay of last year or is it damage limitation do you think?

 

I am waiting to see what happens before I raise a dispute with them myself now.....

 

This is yet another bit of proof that they messed up with the original termination letter. And boy-oh-boy do they know it.

 

What they have done to your o/h is perfectly within their rights, and they have done it correctly this time (assuming your transcription is accurate).

 

Although, it also is clearly not written by a legal expert.

 

It does also reinforce the widely spread rumour within banking circles that yet more jobs will be gone in the UK due to greed.

 

Edited March 17, 2009 by BigEddieChek

[militantconsumer]

What they have done to your o/h is perfectly within their rights, and they have done it correctly this time.

 

Unless they have done any recent dodgy increases on the interest rates of any outstanding balance - which might be considered unfair by the Financial Ombudsman.

 

It does also reinforce the widely spread rumour within banking circles that Citi are allegedly winding-up are certain UK part of their operation.

 

Eddie, this thread has persuaded me to move my savings out of Egg and into a safer bank that pays a lower interest rate. When I called them up to do the transfer they never even tried to persuade me out of it.

[cosalt]

I have received a letter from the DCA today saying they can now offer me a substantial discount off the balance for a full and final settlement........

 

Strangely enough I won't be taking up that offer !

[toymaker1]

 

My O/H received a letter from Egg a few days ago (dated 6th March)

saying the following so looks like another lots of customers cards have been 'ended' !

Just to confirm he has never missed a payment and is not in default.

He recently asked for an increase in his credit limit and was refused!!

He is now gobsmacked at recieving this letter.

 

Letter from Egg:-

 

Your Egg Card will not be renewed.

 

Dear Mr XXX

 

At Egg we are committed to being a responsible lender and review credit card accounts in the period prior to the expiry date of the current card.

 

Please be advised that this means after the expiry date you will not be able to use your account and any regular payments such as monthly subscriptions will not be paid. You should contact your service provider to arrange cancellation and alternative means of payment.[/size]

 

 

My O/H did call Egg initially asking why they have done this and they just kept saying it is a company decision due to the credit crunch!

Is this a replay of last year or is it damage limitation do you think?

 

I am waiting to see what happens before I raise a dispute with them myself now.....

 

Hi,

 

I'm sorry to have to disagree with other contributors to this thread who seem to think that Egg are just about keeping within the provisions of CCA 1974.

In my opinion, Egg are doing this in a mistaken belief that it falls within CCA, in contrast to the mass termination letter, which even they now realise falls outside CCA.

The letter sent by Egg to your o/h is just as invalid as the mass termination letter of last year, - for the following reason;

 

Egg have indicated to you that any regular payments out of your Egg Card account such as monthly subscriptions to a third party will not be paid. EGG CANNOT DO THAT!!!!!!!

As you have not breached the terms of the agreement (i.e. you are not in arrears), the most that Egg can do is restrict or defer your right to draw on credit.

I know this sounds confusing, but to take two examples,

 

1. Egg is acting totally within it's rights to not provide you with further credit - by, for example refusing to provide you with a new credit card.

 

2. Any previously arranged/agreed monthly payments out of your Egg account fall within the term "restricted use" credit. Therefore such previously agreed payments must be honoured by Egg - They canno just leave you in the lurch by stopping the payments out of your Egg account.

This is covered by, for example, S11(b) of CCA 1974. Additionally, a court would regard it as an unfair business relationship within the terms of S140 of CCA1974.

 

Hope that makes sense.

 

Regards

Peter

[militantconsumer]

I have received a letter from the DCA today saying they can now offer me a substantial discount off the balance for a full and final settlement........

 

 

 

Strangely enough I won't be taking up that offer !

 

How substantial?

[cosalt]

How substantial?

 

Well, who knows ? They have not specified amounts, only that it is 'substancial' I have to ring them for more details