King vs Egg Credit Card

[king123]

I'm in the process of trying to reclaim credit card charges from Egg and have been helped by this thread.

 

The bigger issue for me (as the account balance is in the 10k range) is whether the CCA is enforceable and if not what I can do about. I gather from my reading on the forum that it might well be a dud. It looks quite like the document in this guy's thread.

 

Do we think this is unenforceable? If it's not what would a reasonable outcome be?

 

 

[king123]

Well I've sent Egg what should be the final letter about charges (based on this) and had a charming reply saying they won't budge and that I am entitled to complain to the FSO. The key paragraph is:

 

"In line with the Office of Fair Trading (OFT) investigation into default charges the charges incurred are a genuine pre-estimate of the loss caused to Egg when a customer breaks the terms of their agreement".

 

My letter to them had already stated:

 

"If your charges are indeed a genuine pre-estimate of the administrative costs likely to be incurred by you in dealing with defaults then in order to reassure me that your penalties really do reflect your costs, I request that you provide me with a breakdown and proof of all costs involved with regard to your actual or liquidated losses involved in any breach of contract to which these charges relate with yourselves and that these charges reflect your true costs in relation to the said charges and are proportionate to the charges levied on my account as defined in Unfair Terms in Consumer Contracts Regulations 1999 Schedule 2 (e). "

 

so my guess is that they didn't actually read my letter nor do they have any intention of refunding me.

 

Did anyone look at my CCA and do they think it's enforceable or not? (I know these are seperate issues, but if I'm not getting any joy with regard to bank charges I need to try a different tactic!)

[king123]

PS It's interesting that they're treating this as "Your complaint" whereas in fact it's a claim based on a point of law :/ I'm not complaining, I'm telling them they owe me money and asking them to pay it!

[Mistermind]

Egg managers know the Moc1982 template letter by heart after receiving it for 2.5 years -- Egg paid out without exception, to some immediately, to others with more delay not unrelated to the wooliness of the text they received. When you rephrased it the crispness was lost, and it looked like a new letter.

 

The letter you received was not composed by a human and does not reflect a human decision, but just another one of the standard templates printed off the computer in volume whenever specified by a clerk for one of their 2 million cardholders.

 

Check back in the Egg Forum -- another person received an identical text. Ignoring Egg's "Final" position he reiterated his own final position, namely to see you in court, with legal papers to be served in one week and the extra cost to be reclaimed from you. Egg paid in full. It is your case to run as you choose.

 

Good luck.

Edited August 12, 2009 by Mistermind

[king123]

Thanks Mistermind! I only rephrased it to reflect my circumstances, i.e. they have offered me nothing whereas the person who wrote the letter had been offered a partial refund. I suspect they didn't read past the first paragraph anyway

 

I'll have to think about your advice as we're talking "only" £200 out of a 10k account and I'm not sure it's worth going to court over. If I threaten to see them in court I have to mean it, of course.

[car2403]

We've seen this agreement (well, not your's, but the format) and the problem seems to be this;

 

http://www.consumeractiongroup.co.uk/forum/legal-issues/188093-egg-credit-agreements-what.html?highlight=egg

 

[king123]

Thanks Chris. I've spent most of the weekend reading the forum and whilst I can find lots of debate about whether Egg agreements are enforceable or not (thanks for the links btw) I don't see many examples of people being successful against Egg and to be honest I haven't a clue what I should do next

 

The situation in brief:

I've been making token payments for over a year. CCA was received early in 09. Case is being handled by a DCA. Charges reclaim has been fruitless.

 

I'm thinking my options are to sit tight and continue with the the token payments for now, or make a (low) F&F offer. Otherwise if I don't get some of these bigger debts cleared soon I might have to consider bankruptcy.

 

Any thoughts or advice?

[car2403]

I think we're saying it's unenforceable because of those issues, right?

 

If it were me, I'd concentrate on the enforceable debts, as those come above this.

 

Paul is more over these Egg agreements than I - I'll see if I can grab his attention.

[king123]

Thanks Chris.

[MARTIN3030]

Who is the DCA?

[king123]

The DCA is DLC.

[king123]

Tried making a low F&F with money from a relative but all its done is woken DLC up and now they're hassling me again. I'm just gonna sit tight for a while and make my agreed payments while I decide what to do.

[king123]

DLC wrote to me in November saying that they "need" me to increase my payments and threatening to withdraw my "instalment rights". I haven't paid them since November, so they wrote again in December saying I'm behind with my payments. They've also asked several times for an SOA. This is pretty much routine now, a letter per month.

 

Should I just sit tight? Should I send an SOA? Should I make an payment? Is there anything else I can do? The debt is nearly 10k and is 20% of what I owe. I know the CCA may be dodgy but I don't feel at all comfortable about challenging it in the current climate.

Edited January 2, 2010 by king123
Addition

[king123]

Account got passed to ARC and I've been receiving threatening letters from Trevor Munn. Have made a token payment, but really don't know what to do now. Is there any mileage in challenging the CCA or would it be better to just carry on making token payments and hope they go away/get bored?

[Honeypot]

Hi King

 

Subbing.

 

After Reading your thread our financial circumstances seem the same!

 

Vicky

xxx

 

PS- you're lucky. My CCA is enforeceable. Yours isn't.

[king123]

The latest on this is that ARC are collecting for Egg, and they've offered me a 40% discount. They are offering on behalf of Egg to mark the account partially settled and with a balance of nil and to not pursue me any further.

 

Just posting this an update for anyone who subbed, don't really need any advice on it.

 

Would be tempting if this were my only debt to borrow the money off my parents. As it currently stands I owe Egg 10k out of a total debt of 42k. I can't lay out nearly 6k and still have 36k debt left, would be better to go bust! However I think I'll bring forward my plan to write again to all creditors offering say 20%.

[king123]

I've settled this account with a very substantial discount so this thread can now be closed. 1 down, 5 to go!

[luluwanttobedebtfree]

Hi King

 

I have just read your thread, and see that you replied only today.. great news! What did you agree in the end with Egg..? I'm interested as I have an Egg Card and Loan and am hoping to do the same as you!

[king123]

The amount you can hope to settle for is going to depend on all sorts of factors such as the age and size of the debt, your current income, how many DCAs it has to been to etc. I don't want to reveal the specific percentage I paid at this point but I will say it was well below 50%. If you need more help please start your own thread and post a link to it here