Egg credit card agreement terminated

[oldshowman1953]

Wow this EGG thing is a real mindfield! I was one of the 161000 who had their cards 'cancelled' last year for no reason. I did have slight arrears from time to time but generally it was ok. After their termination I immediately cancelled my direct debit but continued to pay as and when and my minimum payment was about £150 a month. Some time later they increased the minimum payment from 2% to 3% meaning that my minimum went up to about £200 a month and I then got into arrears and subsequently defaulted. I agreed to a minimum payment of about £120 a month but couldn't keep it up and now have had a letter 'terminating my agreement'!

 

I did speak to them to try to set up a minimum payment scheme again but they said they weren't interested so I said that I would then apply to see if the agreement was enforcable and they said it was and that lots of people had tried this before but no one has won so far.

 

I've got my CCA which seems fairly tight but my wife noted the following which she thought was relevant

 

No ‘Your right to cancel’

 

In certain circumstances the box explaining your rights may be omitted. However, it must be sent to you within 7 days of the agreement being signed otherwise the agreement is not properly executed. Information not supplied.

 

Regulation 2 (4) Consumer Credit Agreement Regulations 1983 (SI1983/1553) requires that the statutory information set out within Para 3-19 of schedule 1 and 2 SI1983/1553 should be shown as a whole and not interspersed with other information if the agreement is to be properly executed and compliant with section 61 CCA 1974.

 

Paragraph 22 of Schedule 1 Consumer Credit Agreement Regulations requires that the agreement details the default charges payable and Egg Agreements DO NOT.

 

I'm expecting a letter from a DCA any time now and just wondered if anyone thinks that I should just put the account in dispute at this time and take it from there?

[gazab41]

hi I recived letter last week in the same threating way from ARC complete load of rubbish now my case maybe slightly different to yours had egg account 2000/2001.

 

Got in to financial difficulties 2004 egg told me debt was sold shortly after default could no longer log on to eggs system to check balance however supposedly now handled by credit solutions limited phone every 2 months trying to get me to increase payment plan or settle at just under 50% full debt.

 

more cash flow problems march 09 not paid since the letter out of blue ARC at new address not sure how they even got address ten days to comply contacted FOS about ppi and general unfair charges and why i was told sold can now log back on eggs system no CCA showing and it states account only recently opened contacted ARC qouted FOS ref number they stated they would contact egg not heard anything for a week...good luck tell them account is in dispute this should get rid of them for now!

[blackntan]

No one dca has any more powers than another. They may use more threatening language but unless they are going to follow through that is all it is; just threats. They need to put up or shut up.

Creditors should not be sharing our data with all these agencies.

Egg are just trying their luck passing the debt from one dca to another.

Toymakers argument applies whichever court or dca you are dealing with and that is the one they have to answer. Considering most dca's don't appear to read our letters you judge for yourself whether it is worth replying to them.

[toymaker1]

Wow this EGG thing is a real mindfield! I was one of the 161000 who had their cards 'cancelled' last year for no reason. I did have slight arrears from time to time but generally it was ok. After their termination I immediately cancelled my direct debit but continued to pay as and when and my minimum payment was about £150 a month. Some time later they increased the minimum payment from 2% to 3% meaning that my minimum went up to about £200 a month and I then got into arrears and subsequently defaulted. I agreed to a minimum payment of about £120 a month but couldn't keep it up and now have had a letter 'terminating my agreement'!

 

I did speak to them to try to set up a minimum payment scheme again but they said they weren't interested so I said that I would then apply to see if the agreement was enforcable and they said it was and that lots of people had tried this before but no one has won so far.

 

I've got my CCA which seems fairly tight but my wife noted the following which she thought was relevant

 

No ‘Your right to cancel’

 

In certain circumstances the box explaining your rights may be omitted. However, it must be sent to you within 7 days of the agreement being signed otherwise the agreement is not properly executed. Information not supplied.

 

Regulation 2 (4) Consumer Credit Agreement Regulations 1983 (SI1983/1553) requires that the statutory information set out within Para 3-19 of schedule 1 and 2 SI1983/1553 should be shown as a whole and not interspersed with other information if the agreement is to be properly executed and compliant with section 61 CCA 1974.

 

Paragraph 22 of Schedule 1 Consumer Credit Agreement Regulations requires that the agreement details the default charges payable and Egg Agreements DO NOT.

 

I'm expecting a letter from a DCA any time now and just wondered if anyone thinks that I should just put the account in dispute at this time and take it from there?

 

I can tell you what I have done, and you can make of it what you will.

 

In a case such as yours, which seems to be exactly the same as what happend to me, I would not bother with all the "technical" legal points, which lawyers will argue about in court with no certain outcome. What I did was to take Egg head on. i.e I asked them, and the numerous DCA's who it was passed to over the months, to indicate to me the relevant section of CCA1974 which provided them with entitlement to terminate my credit card agreement. None of them could provide me with an answer to that simple question. (because there isn't one!) I stopped immediately my £300 monthly direct debit, and I have not heard from Egg or their DCA since January.

 

AS it happens I am now going through exactly the same process with Monument, who have terminated my agreement when it was not in default or in arrears. I have stopped my £200 monthly payments, and am waiting for them to indicate to me the part of CCA1974 which provides them with entitlement to terminate my agreement.

 

Regards

Edited September 21, 2009 by toymaker1
grammar and spelling caused by rushing!

[Marcus_ad]

My Egg credit card interest rate just jumped... has anyone elses ? If we all shared information like this we can stop their little "divide and rule" shennanigans.

 

My credit history is perfect. My rate is 29.9% APR. It was 16.9 a year ago.

 

Anyone else???

[Marcus_ad]

has anyone ever actually had a result out of all this legal stuff? Is it really worth me trawling through it all - or do Egg have all the power they need?

[twodogs]

I had a letter from Egg today regarding my complaint which read:

 

"Our understanding of your complaint

My understanding of your complaint is that it concerns your egg card agreement. In particular you have complained because your agreement was terminated on 6th March 2008.

 

You claim your debt with egg is in dispute. You feel that we have terminated your agreement in a manor which does not comply with the provisions of the Consumer Credit Act 1974.

 

Our findings from the investigation

 

The egg card terms and conditions are regulated by the Consumer Credit Act 1974. Egg are entitled to end your agreement at any time providing 30 days notice is given. This notice was given to you by letter which was sent to you on 29 January 2008.

 

By signing within the box at the end of your agreement, you were consenting to be bound by all of the terms of the agreement including all of those terms outside of the box. Therefore you are legally bound to all of the terms of that agreement.

 

The choice of whether or not to accept those terms was entirely up to you. By signing the agreement you have accepted the terms. You are not entitled to revoke this acceptance without terminating the agreement and paying the balance that you owe on your account.

 

If you are experiencing financial difficulties blah blah blah...."

 

No doubt some of you have already been here so is it just a case of wait until their next move or do I need to respond to this letter?

 

Thanks

[diddydicky]

were you in arrears at the time?

[twodogs]

No I'd always had an impeccable payment history; since they cancelled it my online account appears to have had an increase in credit limit too! They also sent me a termination letter, again, in May 2009.

[toymaker1]

I had a letter from Egg today regarding my complaint which read:

 

"Our understanding of your complaint

My understanding of your complaint is that it concerns your egg card agreement. In particular you have complained because your agreement was terminated on 6th March 2008.

 

You claim your debt with egg is in dispute. You feel that we have terminated your agreement in a manor which does not comply with the provisions of the Consumer Credit Act 1974.

 

Our findings from the investigation

 

The egg card terms and conditions are regulated by the Consumer Credit Act 1974. Egg are entitled to end your agreement at any time providing 30 days notice is given. This notice was given to you by letter which was sent to you on 29 January 2008.

 

By signing within the box at the end of your agreement, you were consenting to be bound by all of the terms of the agreement including all of those terms outside of the box. Therefore you are legally bound to all of the terms of that agreement.

 

The choice of whether or not to accept those terms was entirely up to you. By signing the agreement you have accepted the terms. You are not entitled to revoke this acceptance without terminating the agreement and paying the balance that you owe on your account.

 

If you are experiencing financial difficulties blah blah blah...."

 

No doubt some of you have already been here so is it just a case of wait until their next move or do I need to respond to this letter?

 

Thanks

 

If I had received such a letter from Egg, I would send the following:

 

Dear xxxxxxxxx

 

Thank you for your letter dated xxxxxxxx.

 

I am very concerned that Egg has chosen not to properly investigate my complaint, contained in my letter xxx dated xxxx, that Egg terminated my Egg agreement in a manner which does not comply with the provisions of The Consumer Credit Act 1974.

 

My reason for stating that Egg has not properly investigated my complaint arises from Egg's statement that" Egg are entitled to end my agreement at any time providing 30 days notice is given". That statement clearly indicates that Egg is totally unaware of the provisions of section 87 of the Consumer Credit Act 1974 which govern termination of credit card agreements. I would be grateful if Egg would indicate to me that part of the Consumer credit Act 1974 which provides Egg with entitlement to end my Egg agreement at any time providing 30 days notice is given.

 

Also, with regard to Egg's statement that by signing within the box at the end of my agreement, I was consenting to be bound by all the terms of the agreement, and that I am legally bound to all the terms of that agreement; I draw Egg's attention to Section 173 of the Consumer Credit Act 1974, which clearly indicates that a term contained in a regulated agreement is void if it inconsistent with a provision for the protection of the debtor contained in the Act or in any regulation made under the Act.

 

Specifically, the term at 20.2 of the Egg Agreement, which states that Egg can end this agreement at any time, is such a term. That is to say term 20.2 is inconsistent with the provisions of section 87 of the Consumer Credit Act 1974, which govern the circumstances in which a creditor entitled to terminate a credit card agreement. In light of the inconsistency between Egg's statement that Egg can end my agreement at any time, and the provisions set out in section 87 of the Act, I consider that Egg's term 20.2 is void, within the meaning of section 173 of the Consumer Credit Act 1974.

 

In the event that the dispute beteen Egg and myself is put before a court for adjudication I will draw the attention of the court to the matters I have outlined. I will also submit to the court that Egg's apparent ignorance of the provisions of The Consumer Credit Act 1974 make Egg not a fit person to carry on the business of a consumer credit business, within the meaning of section 25 of the Consumer credit Act 1974.

 

Yours faithfully etc etc

 

 

 

You could put many other points in such a letter, but it starts to get too long and complicated. many relevant points can be noted and kepty for future reference. I think it is always best to try to keep each letter very much to the point, and as short as possible.

 

Regards Peter.

Best of luck!

(PS having had all this with Egg, I am now going through exactly the same process again with Monument, who also terminated my card when it was not in default! - oh well, it's good for the brain cells.)

[twodogs]

I had a reply to my letter that something like Toymaker's text which read:

"Your agreement was not terminated in the sense to which you are referring. Your agreement was not terminated so that it could be passed to a debt collection agency as part of the default process. It was a restriction applied to the account. The letter sent to you on 29th January 2008 confirms this.

 

In light of the information provided our decision remains the same and your complaint cannot be upheld."

 

I would say termination as little more than a restriction!

 

 

If I had received such a letter from Egg, I would send the following:

 

Dear xxxxxxxxx

 

Thank you for your letter dated xxxxxxxx.

 

I am very concerned that Egg has chosen not to properly investigate my complaint, contained in my letter xxx dated xxxx, that Egg terminated my Egg agreement in a manner which does not comply with the provisions of The Consumer Credit Act 1974.

 

My reason for stating that Egg has not properly investigated my complaint arises from Egg's statement that" Egg are entitled to end my agreement at any time providing 30 days notice is given". That statement clearly indicates that Egg is totally unaware of the provisions of section 87 of the Consumer Credit Act 1974 which govern termination of credit card agreements. I would be grateful if Egg would indicate to me that part of the Consumer credit Act 1974 which provides Egg with entitlement to end my Egg agreement at any time providing 30 days notice is given.

 

Also, with regard to Egg's statement that by signing within the box at the end of my agreement, I was consenting to be bound by all the terms of the agreement, and that I am legally bound to all the terms of that agreement; I draw Egg's attention to Section 173 of the Consumer Credit Act 1974, which clearly indicates that a term contained in a regulated agreement is void if it inconsistent with a provision for the protection of the debtor contained in the Act or in any regulation made under the Act.

 

Specifically, the term at 20.2 of the Egg Agreement, which states that Egg can end this agreement at any time, is such a term. That is to say term 20.2 is inconsistent with the provisions of section 87 of the Consumer Credit Act 1974, which govern the circumstances in which a creditor entitled to terminate a credit card agreement. In light of the inconsistency between Egg's statement that Egg can end my agreement at any time, and the provisions set out in section 87 of the Act, I consider that Egg's term 20.2 is void, within the meaning of section 173 of the Consumer Credit Act 1974.

 

In the event that the dispute beteen Egg and myself is put before a court for adjudication I will draw the attention of the court to the matters I have outlined. I will also submit to the court that Egg's apparent ignorance of the provisions of The Consumer Credit Act 1974 make Egg not a fit person to carry on the business of a consumer credit business, within the meaning of section 25 of the Consumer credit Act 1974.

 

Yours faithfully etc etc

 

 

 

You could put many other points in such a letter, but it starts to get too long and complicated. many relevant points can be noted and kepty for future reference. I think it is always best to try to keep each letter very much to the point, and as short as possible.

 

Regards Peter.

Best of luck!

(PS having had all this with Egg, I am now going through exactly the same process again with Monument, who also terminated my card when it was not in default! - oh well, it's good for the brain cells.)

[toymaker1]

"Your agreement was not terminated in the sense to which you are referring. ...... It was a restriction applied to the account. The letter sent to you on 29th January 2008 confirms this.

 

I'm a bit confused.

Just to clarify, did you receive a letter from Egg dated 29th January 2008 which stated that the termination of your account was to be regarded as a restriction applied to the account, and that the agreement was not terminated in the usual meaning of terminated?

 

If Egg sent you a letter telling you that your agreement was merely restricted, then you received a totally different letter to the one I received.

The letter I received from Egg in 2008 said

 

"we are giving you formal notice that your agreement will end 35 days after the date of this letter"

The meaning of that sentence is very clear. - it means that Egg terminated my agreement.

 

You appear to have received a totally different letter, telling you that you were to understand "termination" to mean "restricted".

 

Perhaps you could tell us what the letter of 29th January 2008 said.

 

regards

[twodogs]

I must admit this confused me also, the next paragraph of the letter I quoted earlier has quoted the original letter and reads:

 

"We're writing to tell you that we've reviewed your Egg Card account and under condition 20.2 of your egg card agreement, we are giving you formal notice that your agreement will end 35 days after the date of this letter."

 

I also did not state that the only reason they terminated it was so that they could pass it on to a DCA as the reply states.

[toymaker1]

I must admit this confused me also, the next paragraph of the letter I quoted earlier has quoted the original letter and reads:

 

"We're writing to tell you that we've reviewed your Egg Card account and under condition 20.2 of your egg card agreement, we are giving you formal notice that your agreement will end 35 days after the date of this letter."

 

That is exactly the same text as in my termination letter.

To me it is totally clear - Egg have terminated your agreement.

 

If Egg wrote to me telling me ( more than a year later!) that the termination of my agreement was actually only intended to be regarded as a restriction on the account I would write something like this.

 

 

Thank you for your letter dated xxxxxx.

 

In the event that the dispute between Egg and myself is put before a court for adjudication, I will listen with great interest to Egg's explanation to the court that when Egg terminated my Egg agreement, Egg did not intend "termination" to have it's normal meaning, but intended their termination of my Egg agreement to be regarded merely as a restriction on my use of the account. I will also pay close attention to the court's response to Egg's explanation that termination of an agreement, within the meaning of the Consumer Credit Act 1974, merely means restricted use of the account.

 

Yours etc etc

[diddydicky]

i would write to them and say:-

 

dear sirs,

 

being the architypal "Man on the Clapham Omnibus" i took your letter terminating my agreement in 35 days from the date of your letter as terminating my agreement 35 days from the date of your letter.

 

Kindly advise me what other interpretation i should have put upon it

 

Y F

[toymaker1]

i would write to them and say:-

 

dear sirs,

 

being the architypal "Man on the Clapham Omnibus" i took your letter terminating my agreement in 35 days from the date of your letter as terminating my agreement 35 days from the date of your letter.

 

Kindly advise me what other interpretation i should have put upon it

 

Y F

Very good!

[CONFUSED45]

Hi Toymaker

 

Just received my SAR request back from egg, no termination letter and agreement got citicorp address at top,

There are computer read outs, which are as follows:-

29/01/08 terminated agreement a/c letter b sent

07/03/08 terminated agreement account- resticted 6/03/08

EGG 14/03/08 TERMINATED AGREEMENT ACC. RESTRICTED ON 06/03/08

 

 

Account now been passed over to DLC wrote to them, just had a reply to my letter stating that they are referring the matter back to egg.

 

confused

[c14r3]

I know others following this thread have had their Terminated Credit Card Accounts passed to dca’s and hounded (thanks to Toymaker they seemed to all disappear when I sent a letter and asked them to “indicate to me the relevant section of the Consumer Credit Act 1974 which provided Egg with entitlement to terminate my Egg credit card agreement”) but has Egg actually sold your account to a dca?

 

Yesterday I received a letter from Cabot Financial introducing themselves (I think they are trying the nicely nicely approach I wonder why) with with an attached letter from Egg saying:

 

We hereby give notice of the transfer of the debt due to us from you in respect of the balance of £****.** outstanding on your Credit Card account.

 

On 1 October 2009 your account was sold to Cabot Financial (UK) Limited

 

Any further communications and payments must therefore be addressed to Cabot Financial Group.

 

1. Is the enclosed this letter from egg a notice of assignment (proof that Egg have sold my debt to Cabot)

 

2. Does this now mean that the balance with Egg is Zilch?

 

 

3. Should Egg have sold the debt while it was in dispute? Not that I’m bothered.

 

 

4. I’m not naive I know Cabot will now try and hound me too for the full balance of the "Terminated Account" What I would like to know do I deal with them in the same way I responded to with Moorcroft, Westcott and others by sending letter and asking them to “Indicate to me the relevant section of the Consumer Credit Act 1974 which provides Egg with entitlement to terminate my Egg credit card agreement”

 

I understand that Cabot have brought my “terminated account” from egg for pennies but from reading Debt sold on to DCA - help please? am I right in thinking that I don’t actually have any contract with Cabot so they will try enter a contract with me over the phone (not that I ever speak to dca’s over the phone anyway) I would like to know how I should respond to them and if I should respond to them at all.

Edited October 15, 2009 by c14r3

[toymaker1]

I know others following this thread have had their Terminated Credit Card Accounts passed to dca’s and hounded (thanks to Toymaker they seemed to all disappear when I sent a letter and asked them to “indicate to me the relevant section of the Consumer Credit Act 1974 which provided Egg with entitlement to terminate my Egg credit card agreement”) but has Egg actually sold your account to a dca?

 

Yesterday I received a letter from Cabot Financial introducing themselves (I think they are trying the nicely nicely approach I wonder why) with with an attached letter from Egg saying:

 

We hereby give notice of the transfer of the debt due to us from you in respect of the balance of £****.** outstanding on your Credit Card account.

 

On 1 October 2009 your account was sold to Cabot Financial (UK) Limited

 

Any further communications and payments must therefore be addressed to Cabot Financial Group.

 

1. Is the enclosed this letter from egg a notice of assignment (proof that Egg have sold my debt to Cabot)

 

2. Does this now mean that the balance with Egg is Zilch?

 

 

3. Should Egg have sold the debt while it was in dispute? Not that I’m bothered.

 

 

4. I’m not naive I know Cabot will now try and hound me too for the full balance of the "Terminated Account" What I would like to know do I deal with them in the same way I responded to with Moorcroft, Westcott and others by sending letter and asking them to “Indicate to me the relevant section of the Consumer Credit Act 1974 which provides Egg with entitlement to terminate my Egg credit card agreement”

 

I understand that Cabot have brought my “terminated account” from egg for pennies but from reading Debt sold on to DCA - help please? am I right in thinking that I don’t actually have any contract with Cabot so they will try enter a contract with me over the phone (not that I ever speak to dca’s over the phone anyway) I would like to know how I should respond to them and if I should respond to them at all.

 

In my opinion, you should resist the temptation to respond to the letter from Cabot. Just file it, dont reply to it, dont speak to them on the phone about it. After a few weeks you will get another letter. At that point you might need to respond. Post here when you get the next letter from Cabot.

 

Regards

[c14r3]

Thanks Toymaker. Maybe Egg have not sold the debt to Cabot after all. I was just reading this thread Saddler10, Cabot and Egg and it looks like Cabot may be telling me BS!! The letter I received is exactly the same as Saddler10.

 

I will not be writing to egg to confirm the letter I received, I guess I've anwsered my own question I will just be dealing with Cabot with contempt. At least this gives me and everyone else reading this thread a heads up on what tactics Egg and their dca’s will try, makes no difference to me what they do as of now as far as I'm concerned Egg have terminated my agreement untill they or one of their dca's takes me to court they wont be getting a dime.

[BEC01]

Just to pass on a further bit of advice.

Egg know that all the accounts that they sent the termination letter to have unenforceable CCAs.

 

They did an audit on all of their agreements prior to their sale a few years back.

 

The ones deemed unenforceable thus received the termination letter.

 

Sit tight, let them take you to court (which is unlikely to happen), and ignore any threatening letters.

 

Of course, you will get a default on your credit file - but that just means no more debt for 6 years.

 

Is that really such a bad thing?

 

[cal21c]

That is good to know and it probably makes sense. In a way they have as good as admitted it in that case?

 

And as for no more debt for 6 years - I've been living without a Credit Card for nearly a year now and though it has been hard work, I wish I'd done it years ago....

[twodogs]

I sent a response to Egg regarding their letter to me stating that "termination" actually means "restriction" in Egg language in which I sdaid I'd be interested to hear Egg's explaination to this in court and the following response came back:

 

"I am unable to offer any further explaination, however, I would like to reiterate that we did not terminate your account in the sense that you are under the impression we did. There is no section in the consumer credit act which allows us to end your agreement the way we did because there is no requirement for there to be one.

 

I am unable to enter into further dialogue with you in regards to this complaint. I would like to reiterate that we do not accept there is a genuine reason for dispute and collections activity will continue as normal. Any further correspondance will be recorded, however, a response will not be issued."

 

I'd like to know what think I believe is the reason for terminating my account since I haven't told them.

 

Also it reads to me like they know they cocked up by stating "There is no section in the Consumer Credit Act which allows us to end your agreement the way we did because there is no requirement for there to be one"

[toymaker1]

we did not terminate your account in the sense that you are under the impression we did.

 

The whole they have dug for themselves is getting bigger by the week!

 

I would say to Egg:

 

Thank you for your letter dated xxxxxx.

 

In the event that the dispute between Egg and myself is put before a court for adjudication I will submit to the court that Egg's termination of my Egg agreement gave me the impression that Egg had decided, for it's own reasons, to end it's contractual agreement with me, and that I am not aware of any other construction which could be put on the phrase "we are terminating your Egg agreement"

I will also submit to the court that I am in full agreement with Egg's statement that there is no section in the consumer credit act which allows them to end my agreement.

 

Yours etc.

 

 

 

Regards

[Bosund]

Hi,

 

Received the following as part of my SAR,

 

http://i925.photobucket.com/albums/ad92/Bosund/terminationstatementedited.jpg

 

Line 6 says 'Termination' and letter sent.

 

So when is Termination not Termination?

 

Regards,

 

Bosun.

Edited October 25, 2009 by Bosund