Changes to Egg Agreement

[Mochamoo]

Did every one get this or just me?



We are making some important changes to your Egg Card Agreement. You'll see below a summary of the changes to your Agreement and the dates they became effective. It's important you understand what the changes below mean to you, so please read the following information carefully.

A summary of the changes effective from 1 October 2008

Clause 4.3 – this change is to reflect that we are not charging interest on charges specified in condition 7.1 that become payable after 1 October 2008 and has immediate effect.

Clause 10.6 – is added to clarify payment allocation.


A summary of the changes effective from 30 November 2008

Clause 2 – is changed as we are changing the minimum payment requirement so that you will always pay off at least the current month's interest.


Clause 4.5 – this clause has been deleted. The minimum interest charge of 50p that was contained in this condition is replaced by a fee of the same amount as now specified in condition 7.2.

Clause 7.1 – is changed to clarify when we will charge you for making a late payment, or when a payment item is unpaid.

Clause 7.2 – is changed to increase the fee for Transactions converted into Sterling. The top-up fee replaces the minimum interest charge of the same amount which formerly applied.

Clause 8 – is changed to clarify the definition of Cash Advance.

Clause 9.4 – is changed to remove the prohibition against internet gambling transactions.

Clause 11.2 – is changed to explain that Cash Back will be paid into your Account.

Clause 18 – is changed to clarify when we may limit the use of your Account.

Clause 21.4 – is changed to clarify when we may use information provided by credit reference agencies.


Except where specified in this email, your Agreement remains unchanged. To view the new and amended conditions, please visit our website.

If you have any questions about these changes, please call us on 08451 233 233. Alternatively, you can send us a secure message by logging in to 'your accounts' via www.egg.com

Yours sincerely

John Jones
Head of Portfolio (UK Cards)
Egg Banking plc

[Amethyst]

Re: Changes to Egg Agreement

Thanks Macho.

They are following the others in not charging compound interest on charges anymore.

Not sure I understand the clause 4.5 amendment. They did say interest would be charged and if it would have been under 50p they would have charged 50p....now they are charging 50p a month as a fee, i assume on balances under the amount that would incur 50p worth of interest....are they charging interest as well ? So basically if you have a card with little or no balance on - you will pay 50p a month?

[Mochamoo]

Re: Changes to Egg Agreement

God only knows - they write in code -confused me

[Amethyst]

Re: Changes to Egg Agreement

Okay - 7.2 is now

7.2 We will charge:

• a top-up fee where the amount of interest charged to your Account on any statement is less than 50p and the fee will be the amount required to make the top-up fee plus that interest equal to 50p.
  
  
  
  
  
  don't know what the original 4.5 was tho.
  

[Mochamoo]

Re: Changes to Egg Agreement


AGREEMENT
CREDIT CARD AGREEMENT REGULATED BY THE CONSUMER CREDIT ACT 1974

This is a credit card agreement between Egg Banking plc of Citigroup Centre, Canada Square, London E14 5LB and you
MOCHAMOO living at: Mochamoo's House

KEY FINANCIAL INFORMATION

1. CREDIT LIMIT

We will set and tell you the Credit Limit from time to time.

2.�REPAYMENTS

Each month you must pay by Direct Debit at least the minimum payment stated in your statement by the Payment Date. The minimum payment will be:

• the full Revolving Balance if it is less than �5, but otherwise the greater of 2% of the Revolving Balance and �5, or (if it is more) the total of (i) interest and (ii) the Card Repayment Protection premium, both as shown in your statement

Plus for each Transferred Balance made during an introductory rate or promotional rate period for Transferred Balances (but only for the duration of that period);

• the full amount of the Transferred Balance if it is less than �5, but otherwise the greater of 2% of the Transferred Balance and �5.

(See Condition 10 of the Egg Card Conditions for further details)

We will collect the amount you tell us you want to repay so that it is paid into the Account by the Payment Date.

3. APR

The APR for your Agreement is 16.9% (variable).

OTHER FINANCIAL INFORMATION

4. INTEREST

4.1 We will charge interest:

• on Purchases put on the Account until 1 October 2008 at an annual rate of 0% fixed until 1 October 2008, and thereafter at a standard variable annual rate of 16.9%;
• on Transferred Balances put on the Account until 1 October 2008 at a monthly rate of 0% fixed until 1 September 2009, and thereafter at a standard variable annual rate of 16.9%;
• 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%.

4.2 If you fail to pay the minimum payment as required under Condition 2 or go over the Credit Limit during the introductory promotion period, we may charge interest on Purchases and Transferred Balances at the standard variable annual rate shown in the last bullet point of Condition 4.1 instead of the rate applicabe for that introductory promotion, starting on the date of the next statement after any failure to pay in accordance with Condition 2, or on the date of the statement showing you to be over your Credit Limit, as applicable. Once withdrawn introductory rates will not be reinstated. We may also vary the interest rates or Charges in accordance with Condition 17 of the Egg Card Conditions. The APR does not take these variations into account.

4.3 We will charge interest on all amounts making up the Balance on a daily basis at the relevant rate set out in Condition 4.1 above from the date each Transaction and Charge is made. Interest will be charged until the Balance has been repaid in full. We will not, however, charge interest on Purchases listed in your last statement, if you pay the Statement Total on or before the Payment Date. We may charge interest on interest if you do not pay your minimum payment.

4.4 We will charge interest on any late payments both before and after any court judgement.

4.5 If any interest is payable, there is a minimum interest charge of 50p. This means that if the interest amount is calculated to be less than 50p, the amount of interest shown as payable in your monthly statement will be 50p.

5. HOW YOUR REPAYMENTS USED

5.1 If you pay up to the full minimum payment, we will apply the amount you do pay to reduce what you owe us in the following order:

• interest on any Transferred Balances and the Revolving Balance;
• any Card Repayment Protection premium (if applicable);and
• the remainder of the minimum payment will be allocated first to Charges made under Condition 7 and then divided between the balances stated in Condition 2 and applied to those balances accordingly.

The amount apportioned to the Revolving Balance will be divided equally between the categories within that balance.

5.2 If you pay more than the minimum payment, we will apply any amount over the minimum payment in the following order:

• Transferred Balances on which interest is charged at an introductory rate or promotional rate (in the order they were put on the Account); and
• the Revolving Balance in the following order:
  
  (i) Charges;
  
  (ii) Transferred Balances that are not charged at any introductory or promotional rates (including any Transferred Balances on which any introductory or promotional rate is no longer charged) and Purchases;
  
  (iii) Cash Advances.

5.3 If we change this order for any Special Promotion we will tell you in the details of the Special Promotion.

6. TOTAL CHARGE FOR CREDIT

If you use your Card to make a Purchase of �1500 and then repay that Purchase in 12 equal monthly repayments you would pay interest of �130.37 based on the annual interest rate which will apply for Purchases after the introductory promotion period for Purchases.

KEY INFORMATION

7. CHARGES

7.1 If you break the terms of this Agreement we may charge you the following, where relevant, to cover the additional cost caused to us:

• �16 each month you go over the Credit Limit, even if we authorised the Transaction which resulted in you exceeding the Credit Limit;
• �16 if you do not keep up the payments on the Account;
• �16 for any payment returned or recalled for any reason;
• any costs and expenses reasonably incurred by us as a result of your breach of this Agreement.

7.2 We will charge:

• �2 for any payment made other than by BACS, Direct Debit, debit card or transfer from an Egg Savings Account;
• a handling fee of 3% of the amount of each Cash Advance (minimum �3.00). If you are an Existing Egg Customer, we will not charge a handling fee.
• for customers who applied before 1 June 2007, a handling fee of 2.5% on the amount of each Transferred Balance made during an introductory offer period;
• for customers who applied after 1 June 2007, a handling fee of 3% on the amount of each Transferred Balance made during an introductory offer period;
• a handling fee on each Transferred Balance made under a Special Promotion. We will tell you what the fee is when we tell you of the availability of the Special Promotion.
• 2.75% commission on all Transactions which have to be converted into sterling (see Condition 9.2 of the Egg Card Conditions);
• �2 for each paper statement; and
• if you ask us for any non-standard service, an amount which we will tell you before we provide the service.

MISSING PAYMENTS

Missing payments could have severe consequences and make obtaining credit more difficult.

IMPORTANT - READ THIS CAREFULLY TO FIND OUT ABOUT YOUR RIGHTS

The Consumer Credit Act 1974 lays down certain requirements for your protection which should have been complied with when this agreement was made. If they were not, we cannot enforce the agreement without getting a court order.

The Act also gives you a number of rights:

1) You can settle this agreement at any time by giving time notice in writing and paying off the amounts you owe under the agreement.

2) If you received unsatisfactory goods or services paid for under this agreement, apart from any bought with a cash loan, you may have a right to sue the supplier, us or both.

3) If the contract is not fulfilled, perhaps because the supplier has gone out of business, you may still be able to sue us.

If you would like to know more about your rights under the Act, contact either your local Trading Standards Department or your nearest Citizens' Advice Bureau.

THEFT, LOSS OR MISUSE OF EGG CARD

If your Egg Card is lost, stolen or misused by someone without your permission, you may have to pay up to �0 of any loss to us. If it is misused with your permission you will probably be liable for ALL losses. You will not be liable to us for losses which take place after you have told us about the theft, etc, as long as you confirm this in writing within seven days.

[Amethyst]

Re: Changes to Egg Agreement


4.5 If any interest is payable, there is a minimum interest charge of 50p. This means that if the interest amount is calculated to be less than 50p, the amount of interest shown as payable in your monthly statement will be 50p.

replaced with


7.2 We will charge:

• a top-up fee where the amount of interest charged to your Account on any statement is less than 50p and the fee will be the amount required to make the top-up fee plus that interest equal to 50p.
  
  
  
  SO the question is WHY.?...........................
  

[Mochamoo]

Re: Changes to Egg Agreement

Because they obviously deceided that interest on my 7k balance is not enough for them and they want to charge me a little bit more, just incase I ever considered paying it off they have the 50p charge up their sleave

To me and I could be reading it wrong if you dont have a balance on your egg card or the balance is only small they are going to charge you 50p just for the hell of it

[Amethyst]

Re: Changes to Egg Agreement

Ahhhh with you, whereas before they only charges 50p if the account attracted any interest (so a balance of £3 etc) so where they would have charged 10p interest they upped it to 50p.If it was a zero balance and attracted zero interest they would charge nothing.

Now if your card is at zero balance and would attract no interest, they will charge you 50p. So basically whatever your balance you pay 50p a month.