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Egg ignoring the rules?

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  • Egg ignoring the rules?

    Trying to reclaim a small amount of charges on a card that was paid off in 2007. Sent the initail letter but included about OFT guidelines and not accepting a partial refund and got the below reply back after 1 day!!!

    Your credit card agreement ("the Agreement") with Egg Banking plc ("Egg") clearly states that charges will be added to your account if you exceed your Credit Limit or fail to make your contractural payments. In accordance with condition 7 of the Agreement, a charge of £20.00 (or since August 2006, a reduced charge of £16.00) has been added to your account each time you exceeded your Credit Limit or failed to make a payment.

    Your letter alleges that these charges are a penalty despite having not put forward evidence to support this allegation. The charges set out in the Agreement are a genuine pre-estimate of the loss caused to Egg when a customer breaks the terms of their Agreement.

    You may have noted the media coverage of the Office of Fair Trading (OFT) investigation into default charges. The OFT stated that a default charge should only be used to recover certain limited administrative costs. These may include postage and stationary costs,staff costs, a proportionate share of the costs of maintaining premises and IT systems necessary to deal with defaults. The OFT set a threshold for intervention of £12 but stated that default fees should not be equivalent to the threshold.

    The OFT ststed that the presumption of unfairness in relation to charges over £12 would not apply where there are exceptional business factors. Thet therefore acknowledged that in those circumstances, a card issuer may be able to set a fair default charge above the £12 threshold.

    The OFT, as an example, specifically referred to Egg's practice of requiring all customers to pay the minimum monthly payment by direct debit.
    Following the conclusion of the investigation, the OFT indicated that it would not proceed further against Egg on the basis that Egg reduced its charges from £20 to £16. Accordingly, without any admission of liability as to the previous level of charges. Egg reduced its default charges to £16.00. The OFT has taken no further action against Egg.

    This reduction does not apply retrospectively; however in your case wea are prepared, without any admission of liability, to apply the reduction to the £20.00 charges.

    In this instance we have agreed to refund the charges that have been applied to your account (being £4.00 per default charge applied to your account) plus 8% statutory interest.


    What do I do next please?

  • #2
    Re: Egg ignoring the rules?

    Just write back and say you are not happy with their reply and will only accept a full refund of all charges.

    If Egg are playing the same game as when I got my charges back I think it takes 2/3 letters but you will get the full charges refunded plus 8%.

    Comment


    • #3
      Re: Egg ignoring the rules?

      Thanks Pinknico will reply today

      Comment


      • #4
        Re: Egg ignoring the rules?

        Recieved letter back today after my second letter. Egg saying they will not budge and will only refund difference of £4.
        They say this is there final offer. Another letter or F.O.S and O.F.T?

        Comment


        • #5
          Re: Egg ignoring the rules?

          Entirely up to you but I would contact the FOS and let Egg know you have done this.

          Comment


          • #6
            Re: Egg ignoring the rules?

            Ok will do that with copies of all letters and keep you informed.

            Comment


            • #7
              Re: Egg lighten my day!!!!!

              I thought on behalf of my wife I would enquire to see if she had any charges on a previous egg account.
              This morning I recieved a reply from Egg and the opening letter read

              Dear Dorothy (Not real name, no offence to anyone called Dorothy! I ask you....Dear. I never even got a covering letter.)

              Please find enclosed the statements requested.


              Best wishes

              Customer Details Team

              BEST WISHES!!!!!
              I wish my Great Aunt best wishes.

              When I checked the statements there were two charges totalling £32.
              Best wishes to you too Egg and I will be claiming for the £32 come hell or high water.

              P.S
              Best wishes to the Customer Details Team this Christmas and a happy New Year.

              Comment


              • #8
                Re: Egg ignoring the rules?

                Dear All
                After a titanic battle I have finally recieved a full refund from the mighty Egg. After an initial offer where the interest was calculated at 28% but not on all the charges I informed the FOS that I was not happy and would only settle for a full refund at the rate Egg had calculated. Four weeks later and a full refund with the interest!

                Comment


                • #9
                  Re: Egg ignoring the rules?

                  Well done, that did take a fair while, well done for sticking to your guns on it


                  #staysafestayhome

                  Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

                  Received a Court Claim? Read >>>>> First Steps

                  Comment


                  • #10
                    Re: Egg ignoring the rules?

                    I'm planning on going down this route with Egg, but when I have asked for information about fees charged (and credited) on my account since it was opened in 2000, they have said that any statements I can't access online I'll have to pay £2 for each, up to a maximum of £10 (or 10 statements, they don't make it clear which). If my account has been open for 10 years, that's 120 statements, 108 of which I don't have access to!
                    Are they obliged to provide this information, or am I stuck?

                    Comment


                    • #11
                      Re: Egg ignoring the rules?

                      I'm planning on going down this route with Egg, but when I have asked for information about fees charged (and credited) on my account since it was opened in 2000, they have said that any statements I can't access online I'll have to pay £2 for each, up to a maximum of £10 (or 10 statements, they don't make it clear which). If my account has been open for 10 years, that's 120 statements, 108 of which I don't have access to!
                      Are they obliged to provide this information, or am I stuck?

                      I've had an initial go at Egg through their online message system in relation to charges that I know about (online statements go back 12 months), and have had the expected response (i.e. no, you can't have your money back etc.). I've told them that their charges aren't valid and that I'll be putting it in writing. Not talking about a huge amount of money, but it all counts. Is there a template letter that I can use?

                      Comment

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