Egg credit card agreement terminated

[egg_nog]

Hi Egg nog

 

If you are content to accept Egg's decision, thats fine, and best of luck.

However, when you study the Egg letter closely, the fact remains that Egg are acting outside the provisions of CCA197.

Everyone must react as they see fit, but, speaking for myself, I have stood up to them very very firmaly, because I know they have acted outside the provisions of CCA.

For example,

1.Egg are within their rights to refuse your o/h a credit increase.

2.Egg are within their rights to refuse to issue a replacement card when your o/h's current card expires.

3. Egg are NOT acting within their rights when they state to your o/h that Egg has decided to end his credit card facility.

- if it was my I would (and have done) ask Egg to indicate to me which part of CCA1974 provides Egg with entitlement to end my credit card facility.

 

What Egg COULD have done (but didn't!) was to say to your o/h that Egg was restricting the credit facility to zero- the point being that the position was open to being reviewed/altered at a future date (remember that the account still continues to exist).

 

By stating that they are ending the credit card facility, it is just another way of saying they are terminating it (which is NOT cancelling it!)

They cannot "end" or "terminate" the facility, they can only restrict or defer it's credit facility.

 

I am not suggesting you fight them on this, just pointing out some things which are worth thinking about.

By the way, you will find Egg has no answer to the question I have suggested you ask them (Which part of CCA1974...etc etc) BECAUSE THERE ISN'T ONE!

 

Regards

Peter

 

Hi Peter

 

Many thanks for pointing this out, I see what you mean now. I had wondered about that.

I don't intend to accept what Egg have done as I am not happy with it

A formal complaint letter will be sent within the next few days......

I just wanted to make sure I was in the right before taking it further.

Thanks again.

Edited March 19, 2009 by egg_nog
sp

[basa48]

...............but speaking personally, I do not pay a penny until a dispute is resolved. I set everything out in writing, and make it clear that interest charges arising since the start of the dispute are caused by their delay in resolving the dispute, and they should not be continuing collection activities anyway, whilst the dispute is continuing. Also, if you make a repayment offer, request that interest be suspended, so as not to cause your overindebtedness to Egg to be increased. Dont pay anything until agreement is reached. I am just telling you what I do. - It might not be right for your situation. The main thing is LETTERS ONLY.

 

Regard

Peter

 

I have 'disputed' my Egg agreement, (by special delivery), also asking by what mechanism in CCA1974 they ended my agreement last year (I mentioned only after quoting 'approved' instead of 'credit' limit).

 

They haven't responded yet - except to tell me I've cancelled my DD!

 

I also pointed out DNs and default entries to my credit file were a no-no whilst in dispute.

 

Have Egg issued DNs to you?

[toymaker1]

I have 'disputed' my Egg agreement, (by special delivery), also asking by what mechanism in CCA1974 they ended my agreement last year (I mentioned only after quoting 'approved' instead of 'credit' limit).

 

They haven't responded yet - except to tell me I've cancelled my DD!

 

I also pointed out DNs and default entries to my credit file were a no-no whilst in dispute.

 

Have Egg issued DNs to you?

 

Yes, Egg sent me a default notice AFTER they claimed to have terminated my account!

Stupid or what?

 

Regards

[basa48]

Yes, Egg sent me a default notice AFTER they claimed to have terminated my account!

Stupid or what?

 

Regards

 

So where are you going with it now? Just let it lie or try to repair your credit files?

[thekat1979]

Egg have JUST issued a DN to me, given me until early April to pay or they will report to CRA, but have marked my CRA as 3 paymetns late now, and have kept reporting info on me throughout all my disputes and are insisting that I pay.

[basa48]

Egg have JUST issued a DN to me, given me until early April to pay or they will report to CRA, but have marked my CRA as 3 paymetns late now, and have kept reporting info on me throughout all my disputes and are insisting that I pay.

 

From what I can gather you now have some choices to make:

 

1. Sit back and ignore it (assuming you don't mind your credit file trashed!).
    
   
2. Wait until they take you to court and defend it.
    
   
3. Take them to court to get a declaration of unenforceability.
   

[toymaker1]

So where are you going with it now? Just let it lie or try to repair your credit files?

 

I've got a feeling that Egg has finally accepted defeat in my case.

I just kept politely asking them to indicate to me the relevant section of CCA 1974 which provided them with legal entitlement to terminate my Egg agreement (which had not been in default).

 

I have not heard from them since I sent a letter 15th January to their solicitor, on the lines of

"In the course of preparing a County Court Claim on behalf of your client xxxxxxxxxx Ltd you will have become aware that the debt claimed by your client is disputed by me.

As you know, paragraph 2.8k of the oft Debt Collection Guidance of July 2003, updated in December 2006, makes it clear that collection activity must cease whilst investigating a disputed debt. I look forward to the results of your investigation.

In the event that the dispute between Egg banking and myself is put before a court for adjudication, I will draw the court's attention to the following points.

1.Both you and your client xxxxxxxxxxltd, although fully aware that the debt is disputed, have continued collection activity in breach of paragraph 2.8k of the OFT Debt Collection Guidance.

 

2.I also consider that the way in which your cllient has exercised his rights under the agreement amount to an unfair relationship in terms of section 140 of CCA 1974.

 

(I go on to make numerous related points)

 

As the solictors acting for xxxxxxxxLtd you will be aware that the credit card agreement between Egg and myself is governed by CCA 1974, therefore I would be grateful if you would indicate to me the relevant section of the Act which provides Egg with legal entitlement to terminate my Egg agreement with effect from 6th March 2008.

In the event that this matter is put before a court I will draw the court's attention to the manner in which xxxxxxxxxxxxx Solicitors have dealt with the dispute between Egg and myself, particularly in relation to,

CCA 1974

Data Protection Act 1998

OFT Debt Collection Guidance

Solicitors Code of Conduct 2007

Credit services Association Code of Practice

 

 

That is a condensed version of what I wrote to Egg.

No response yet.

 

Regards

Peter

[basa48]

I've got a feeling that Egg has finally accepted defeat in my case.

I just kept politely asking them to indicate to me the relevant section of CCA 1974 which provided them with legal entitlement to terminate my Egg agreement (which had not been in default).

 

I have not heard from them since I sent a letter 15th January to their solicitor, ................[snipped]...........................

That is a condensed version of what I wrote to Egg.

No response yet.

 

Regards

Peter

 

Sweet !! :grin:

[cosalt]

I was terminated by egg, then defaulted, then terminated again.

 

My initial intention as you are aware was to take egg to court for the payments taken since they originally terminated me without default.

 

As they now seem to have gone quiet I, for the time being, will move on to others............

[BEC01]

It would seem that the Government's toxic debt insurance scheme, may be a cleverly disguised way of writing-off a large part of the UK's consumer debt.

 

After all, if all our money is going on repaying the horrendous debt that we have, then it is not going into other areas of the economy.

 

We'll never recover if that is that case.

 

Think we are starting to see the winding up of what will be many credit card companies.

[militantconsumer]

I think you could be right Eddie, but it would be nice if they wrote the debts off properly, instead of selling them onto those total chancers we call DCAs, who will then try and hound people for the original full amounts.

 

Having said that, we know about the puritanical views of certain sections of the press when it comes to debt, and the idea that people with a mountain of credit card will be let off the hook, whereas the responsible savers are losing out, blah blah blah.

 

But it is probably the case that many "sub-prime" credit card customers are the very 'spenders' who could get the economy going again but who, as you say, are now the people struggling to repay the 'horrendous' debt.

[BEC01]

If people get spending again, interest rates will go up, shares will go up, so the savers and investors will win.

 

If consumers spend the next 10 - 15 years paying-off debt; then everyone suffers.

 

A lot of big mistakes made, and wiping the debt slate clean is the only hope for the UK economy.

[basa48]

I think you could be right Eddie, but it would be nice if they wrote the debts off properly, instead of selling them onto those total chancers we call DCAs, who will then try and hound people for the original full amounts.

 

Having said that, we know about the puritanical views of certain sections of the press when it comes to debt, and the idea that people with a mountain of credit card will be let off the hook, whereas the responsible savers are losing out, blah blah blah.

 

But it is probably the case that many "sub-prime" credit card customers are the very 'spenders' who could get the economy going again but who, as you say, are now the people struggling to repay the 'horrendous' debt.

 

Amen to that .. let's face it the careful spenders won't ever re-ignite the economy !

[bathgatebuyer]

I had a nice little letter from them following my request for them to justify the decision to raise interest rates a month before terminating my agreement. Apparently section 17 gives them the right to do that, although I'd suggested that it was an unfair practice in that it would appear they have done that as a matter of course to a large percentage (if not all) of the 100,000 customers whose accounts they have closed.

 

Anyone else complaining to them about this?

[thekat1979]

I certainly would like to complain - there is a thread going on here somewhere about the increase in APR just before they cancelled all those agreements.

[lollipop73]

So sorry about the delay, I have only just found this amongst all my paperwork, and someone asked me to put it up so they could compare-not that you guys need any further help, but it might make you feel better about going down this road.

 

This is the letter they sent me to stop my card without ending my agreement-damn.

 

 

[lollipop73]

Of course, if anyone can find any leverage in it ( I wasn't in default), and it adds weight to my "credit" limit argument, I'm all ears-good luck guys.

[toymaker1]

Of course, if anyone can find any leverage in it ( I wasn't in default), and it adds weight to my "credit" limit argument, I'm all ears-good luck guys.

 

If it was me, I would write to Egg something on the lines of:

Dear Sir or Madam

 

Re: Ending by Egg of my Egg credit card facility.

 

Thank you for your letter dated 05 December 2008.

 

As you are aware, both my Egg credit card facility and the actions of Egg as the creditor in respect of that credit card facility are regulated by the Consumer Credit Act 1974. Therefore, in order that I can provide a fully informed response to the points raised by Egg in it's letter to me dated 05 December 2008, I would be grateful if Egg would indicate to me the relevant section of the Act which provides Egg with legal entitlement to end my Egg credit card facility.

 

In the meantime, I will suspend all payments to Egg out of my account xxxxxxxxxxxx until such time as this matter is resolved, as it would appear that Egg has breached the Egg card agreement made between Egg and myself.

 

I would be grateful for a prompt response to this letter, in order that the matter can be speedily resolved and my monthly payments to Egg resumed without interruption.

 

Yours etc.

[BEC01]

So sorry about the delay, I have only just found this amongst all my paperwork, and someone asked me to put it up so they could compare-not that you guys need any further help, but it might make you feel better about going down this road.

 

This is the letter they sent me to stop my card without ending my agreement-damn.

 

 

Thank you, you have no idea how well this fits in to our case against Egg!!!!

 

They really are fools.

[lollipop73]

You are more than welcome Bigeddie, I knew I had kept it somewhere. I hope it does indeed provide even more ammo.

Now Toymaker, it makes for very interesting reading, I have been trying to (yet again) read the CCA and cannot for the life of me find where it allows them to do just this.

 

The account is already formally in dispute as per "credit" wording, so the next time I send them a letter-I am trying to compile my "bring it on" letter this will most certainly form a large part of the complaint.

 

Althoough I haven't made any payments for a couple of months now since I started down this road, it was in perfect condition at the time.

 

 

Thanks Guys.

 

 

 

Couple of letters for the relevant authorities to do tomorrow.

[steven4064]

Opinion is that that letter from Egg constitutes unlawful recision of contract

[toymaker1]

, I have been trying to (yet again) read the CCA and cannot for the life of me find where it allows them to do just this.

 

The reason you cannot find where it allows them (i.e.Egg) to do just this (i.e. end your credit facility when youre account was not in default) is that there ISN'T anywhere in CCA that allows them to do it!

 

In CCA you will find where it allows them to LIMIT your credit card facility, or to DEFER it, but nowhere does it allow them to END (i.e terminate) it.

 

regards.

[lollipop73]

Slowly rubbing my ends together here.

 

 

I adore the internet.

[basa48]

Slowly rubbing my ends together here.

Is that what you meant to say

 

Not heard that expression before !!!

[lollipop73]

Hands Basa, hands, but ends'll do. lol.