Tafflaff against egg Credit card

[Tafflaff]

Hi there , I started a claim against egg around a year ago, got as far as receiving statements off them and then the whole oft saga started so I let it go , not realising that cc claims were business as usual. I've got as far as an offer that is a couple of hundred short of my original £650 in fees taken with compounded Ci it should be around £1700. Would i be right to refuse the offer of £460 ? Should i now take the next step towards court (mcol). Do I need a specific poc. Help!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! pleeeease

Tafflaff (EX R.U.C)

[Amethyst]

Re: Tafflaff against egg Credit card

Hi Taff

Yes either refuse or accept as a partial settlement and make it clear you intend to go to court for the remainder in your letter. Give them a further 7 days to respond then you can put your court claim in. there is a template letter for credit cards POC in the reclaiming part of the Library

Hope that helps if you want any help with your letter pop a draft up here first. Also would be an idea to upload your spreadsheet on here too check alls in order etc.

Ta xx

Ame
xxxx

[Tafflaff]

Re: Tafflaff against egg Credit card

Thanks Amethyst, heres what I got so far.

Mr R *****
My address

Egg Card Services
Riverside Road
Pride Park
Derby
DE99 3GG

Re Account Number *******************
09th August 2008

Dear Sir/Madam
Please find enclosed updated spreadsheet of charges and last correspondence off myself.



I would like to express my disappointment at your failure to act upon my generous timescale for refund of my credit card charges plus interest. Due to your non payment I have now included interest up to this present time instead of, to the end of 2007. Furthermore I have now already submitted a claim with Money claim on line (MCOL) for the full amount of £2126.03.

As I am sure you would like to avoid further court costs and the daily 8% interest that will be applied to the total, may I take this final opportunity to urge yourselves in acting swiftly and pay the highlighted amount.

I then had the offer letter off them. see attatched. The reason the spreadsheet goes back further than 6 years is due to the length of time they took to get my statements out to me.

[Tafflaff]

Re: Tafflaff against egg Credit card

And here is the spreadsheet..... I cant upload it cos it 150kb and the max on the forum is 16?

[Amethyst]

Re: Tafflaff against egg Credit card

mmmm have you already submitted a MCOL ?

''and the daily 8% interest ''

Daily 8%? would stack up rather lol

Email me the spready if you like - amethyst@legalbeagles.info

Then we can look at your letter and hopefully ur POC before you enter a claim in court or decline this offer.

[Budgie]

Re: Tafflaff against egg Credit card

Hi Tafflaff,

I would recommend that if you intend to file a claim for compound interest that you refuse any Egg offer that is not the full amount of your claim and do not accept any partial payment or goodwill gesture on account.

I am firmly of the opinion that you need to keep your entire claim intact through to the final hearing stage so that you are not just left with the possibility of arguing at a final hearing for only the interest portion of your claim.

Regards and Welcome to Legal Beagles

Budgie

[Budgie]

Re: Tafflaff against egg Credit card

I chatted with Tafflaff on MSN last night.

He originally used a spreadsheet from another site which totaled his charges as £488.54 and calculated the compound interest on those charges as £1653.90. This spreadsheet was wrong.

Tafflaff has now used a correctly formulated spreadsheet which now totals his charges as £488.54 and calculates the compound interest on those charges as £739.04.

Before we progress further can you double check the default charges you have listed Tafflaff.

You say the charges total £488.54, Egg say they total £400.

Egg say that default charges are either £20 or £16.

All the charges you list on your spreadsheet are £20 except for one at £28.54 and two at £40

Please double check that all the default fees you have listed in your spreadsheet are actually default fees and can you explain about the £28.54 figure?

Once we are 100% sure of the charges to be reclaimed we can move onto the next step and progress things forward.

Budgie

[WendyB]

Re: Tafflaff against egg Credit card

Not sure if anyone has mentioned this, but best not to file on MCOL as there isn't much room for the POC. Do it on N1 submitted to local courrt instead.

And welcome to Beagles-

[Tafflaff]

Re: Tafflaff against egg Credit card

Thanks budgie for the heads up on my figures. ok the odd amount of £28.54 is my mistake, but the 2 £40 charges are where egg charged me £20 for overlimit and £20 for late payment on the same day. Should I reitemise those?

[Budgie]

Re: Tafflaff against egg Credit card

HI Tafflaff,

Just amend / correct the new spreadsheet that you prepared and email me a copy.
If you are 100% sure that you have listed all the charges and that all the items you have listed are actually charges then we can move onto the next stage.

I will post up your spready on you thread ( if you are happy for me to do this )
and give you some options to consider once I have your updated spreadsheet.

Rgds Budgie

[Tafflaff]

Re: Tafflaff against egg Credit card

my only query now is , is it the correct interest rate?

[Budgie]

Re: Tafflaff against egg Credit card

Yes, I was a bit puzzled about where you derived the 16.9% rate.


Egg Card



Egg Card interest rates are 0% fixed

• on Purchases put on the Account until 1 December 2008 at an annual rate of 0% fixed until 1 December 2008, and thereafter at a standard variable annual rate of 16.9% or 19.9%;
• on Transferred Balances put on the Account until 1 December 2008 at an annual rate of 0% fixed until 1 December 2009, and thereafter at a standard variable annual rate of 16.9% or 19.9%;
• on Cash Advances at a standard variable annual rate of 24.9% if your APR is 16.9% (variable), 25.9% if your APR is 19.9% (variable); and
• otherwise, at a standard variable annual rate of 16.9% or 19.9%

Personally I would use the cash advance rate.

On your existing spreadsheet you have used a rate of 16.9%, I presume you have used the APR purchase rate.

If it is a 16.9% APR purchase rate then the applicable cash advance rate is 24.9% and that is the figure I would use on your spreadsheet.

In applying these default charges to yoru account they have helped themselves to a cash advance from you. They have been unjustly enriched by being able to use the money they have taken from you and relend it over and over again. Therefore in making a claim for resititution and disgorgement you can argue and justify that the applicable rate should be the cash advance rate that they would normally charge when relending out your money. However we can get into all of that side of things later. We can in theory justify an argument for an award of compound interest at any rate that Egg use in the normal course of their business. ( IE Anything between 16.9% and 25.9%.

Regards Budgie

[Tafflaff]

Re: Tafflaff against egg Credit card

Ok thanks I've amended the rate to 24.9% and emailed you the spready

[Budgie]

Re: Tafflaff against egg Credit card

Hi Tafflaff,

OK here we go with the summary of how things stand.

Egg have offered you a without liability return of charges that, according to them, you have incurred in the last 6 years totaling £400. They have also offered to pay you the equivalent of statutory court interest on those charges calculated up to the date of their offer totaling £157.24. This makes their overall offer at the moment £557.24. ( This statutory interest calculation looks OK to me ). Option 1 would be to accept this offer.

I believe that, ignoring the six year scenario, you have actually incurred a total of £460 charges ( ie £60 more than they calculate ) Those additional charges look to be just outside of their six year cut off.
So option 2 could be to get them to also include those additonal £60 of charges plus the additonal statutory interest that would be applicable on those charges. I have calculated this as £460 charges plus £192.30 interest making an overall total of £652.30.

Option 3 would be to refuse their written offer, issue an updated LBA and then pursue a claim for return of your charges of £460 plus compound interest on those charges as per the updated compound interest spreadsheet that you sent me. Based on an interest rate of 24.9% this would equate to £460 charges plus £1279.99 interest, making an overall total of £1739.99.

Obviously you could probably get a payout from Egg very quickly if you were to go for option 1 or option 2. You didnt say if you had an outstanding balance on the Egg card. Bear in mind that Egg will probably offest any settlement against anything that you currently owe on the card.

If you pursue option 3 you will have to put quite a lot of effort into preparing your claim, learning how to argue for an award of compound interest and probably pay quite a lot of money up front in court fees etc ( which you would get back if succesful in your claim ).

I am not sure how Egg might normally react to a filed court claim based on compound interest. They might pay up pretty quickly after you have filed your claim or they might fight it every step of the way.

It's your claim and totally your choice as to how you wish to proceed.

Let me know how you wish to handle things and we will help you every step of the way.

Regards Budgie

[Tafflaff]

Re: Tafflaff against egg Credit card

What is the norm in proceeding, is there much history of other people chasing egg for the ci after egg has made a statutory interest offer?