Egg Card Overlimit fees

[supermac9]

I'm desperately trying to get a straight answer out of the Egg internet customer service team, but they are being pretty vague as always.

Over the past couple of months, my Egg Card account has gone overlimit and I've been slapped with their usual £16 fee. However, they refunded last month's charge as I argued that it wasn't valid, although they came back with their usual 'gesture of goodwill' etc.

My argument is simple (or I think it is!) - they add the £16 fee to my account at the end of one statement period, and this causes the opening balance in the next statement period to exceed the credit limit, but by an amount less than the £16 (i.e. if they hadn't applied the fee, my account would have been below the limit). As a result, at the end of the second statement period, they charge yet another overlimit fee.

My view is that the second overlimit fee is a charge against the first fee and is not valid (or at least not morally right). The problem is that I usually budget to make sure I have enough credit to cope with the estimated interest, but the second overlimit fee takes the account over the credit limit again, and the whole thing starts over.

Any view would be appreciated.

[Caspar]

Re: Egg Card Overlimit fees

As you are talking such a small amount of money, is there no way you can save £2 per week to cover the £8 discrepancy keeping on recurring?

[QCKate]

Re: Egg Card Overlimit fees

I'm desperately trying to get a straight answer out of the Egg internet customer service team, but they are being pretty vague as always.

Over the past couple of months, my Egg Card account has gone overlimit and I've been slapped with their usual £16 fee. However, they refunded last month's charge as I argued that it wasn't valid, although they came back with their usual 'gesture of goodwill' etc.

My argument is simple (or I think it is!) - they add the £16 fee to my account at the end of one statement period, and this causes the opening balance in the next statement period to exceed the credit limit, but by an amount less than the £16 (i.e. if they hadn't applied the fee, my account would have been below the limit). As a result, at the end of the second statement period, they charge yet another overlimit fee.

My view is that the second overlimit fee is a charge against the first fee and is not valid (or at least not morally right). The problem is that I usually budget to make sure I have enough credit to cope with the estimated interest, but the second overlimit fee takes the account over the credit limit again, and the whole thing starts over.

Any view would be appreciated.

Mint do this as well and the minimum payment doesnt cover the interest. Ive had to find a bigger paymemnt to get out of this cycle. they all know what theyre doing,.

QCK

[supermac9]

Re: Egg Card Overlimit fees

I've had the latest £16 refunded so it just goes to show that they will relent if pushed - I'm still waiting for a definitive statement from them about charging fees on top of other fees. They've tried the usual "Please contact the Collections Team" answer, which is what they usually trot out when they don't want to deal with something in black and white.

I'll probably have to wait patiently.

[supermac9]

Re: Egg Card Overlimit fees

I'm still waiting for an answer from Egg about the fees on top of fees policy, but in the meantime I've trawled through the online statements and have asked for three other charges to be refunded - they've knocked me back (as expected!), so I'm going to have to write to their Customer Service Team. These are the messages so far:

From me - "Thank you for your response.
It is my view that the charges in question are not valid and should be refunded in full. I will put this in writing - who do I need to send this to?"

----------------------Original message----------------
Date: 23 Dec 2010
Time: 13:52
Subject: RE: Egg Card / Query a transaction

From Egg - "Dear Anthony

I'm unable to refund these charges as no Egg error has been made and the charges levied are valid.

Thanks for your message.

Regards

Kai Chu
Internet Customer Services"

----------------------Original message----------------
Date: 23 Dec 2010
Time: 13:26
Subject: Egg Card / Query a transaction

From me - "On the statements available online (i.e. from January 2010) there are the following overlimit fees:
17.01.10 - £16.00
17.02.10 - £16.00
17.10.10 - £16.00
I would like to submit a request for the refund of these fees totalling £48.00"


Have found template for letter, so I'm ready to roll!

[supermac9]

Re: Egg Card Overlimit fees

On a similar theme, this time in relation to additional interest charged because of a bouned cheque payment, how about this for a half-baked response from Egg? Do they actually know what they are doing? (most recent message first)

From Egg - The interest adjustment for £16.12 is valid due to the way we allocate payments to your account alongside the way interest is calculated on your account.

For further details of how interest is calculated and added to your account please paste the link below into your web address bar and go to section 5.3 'Interest'

http://new.egg.com/visitor/03_11087--View_106800.html

On this occasion as I'm unable to provide a breakdown of the interest adjustment I've refunded the £16.12 back to your account. The refund will show on your account within 3-4 business days.

If I can be of any further assistance please feel free to contact me.

Thanks for your message.

Regards

Laura Sherwin
Internet Customer Services.

----------------------Original message----------------
Date: 23 Feb 2011
Time: 14:05
Subject: RE: Egg Card / Query a transaction

Thank you for your reply.
For clarity are you saying that 8 days worth of interest on £192.00 comes to £16.12? If that is the case I calculate that to be an annual interest rate of almost 400% unless I am missing something?

----------------------Original message----------------
Date: 23 Feb 2011
Time: 13:57
Subject: RE: Egg Card / Query a transaction

The interest adjustment on the 31 January 2011 is due to the cheque payment made by yourself that failed.

When we receive a cheque payment we add it straight on to the account and the interest charge is then reduced and once the cheques payment clears we then adjust the balance on the card.

As the cheque you sent in to us failed we had to reapply the interest that was deducted from your account during the 8 working days it took the cheque to process.

The interest that was charged was the interest the account would have added to the balance during the following period which is the 18 January 2011 to the 31 January 2011 during this period your account would have accrued that extra interest had you not sent a cheque in.

As the cheque failed we had to re apply that interest.

If you require any further assistance please contact me.

Thanks for your message.

Regards

Simon Gyte
Internet Customer Services

----------------------Original message----------------
Date: 23 Feb 2011
Time: 08:13
Subject: Egg Card / Query a transaction

On 31.01.11 I have been charged £16.12 interest adjustment - could you please confirm what this relates to and how it has been calculated?

[leclerc]

Re: Egg Card Overlimit fees

Can you look at the terms and conditions on Egg and specifically the bit on "how we calculate interest".
This is one based on US$ but will work similar
How to Calculate Credit Card Interest & Payments | eHow.com

The interest would be based on the whole amount and not on simply 8 days.

[supermac9]

Re: Egg Card Overlimit fees

I've been having another go at Egg about a more recent set of fees - this is their response;

Egg has been in consultation with the Financial Services Authority who have deemed the £16.00 fee as an appropriate charge.

Is this statement true, and if so, does it make any difference?

[The Debt Star]

Re: Egg Card Overlimit fees

so, why don't you complain to the FOS and see what comes of it? won't cost you 'owt.

[supermac9]

Re: Egg Card Overlimit fees

After a period of reflection, I've had another go at Egg about their fees - I've had what looks like a standard reply from they justifying why their charges are £16 and that they have the support of the world and his wife, "so don't bother trying to take it any further" sort of message.
They seeem to have a well worked out defence - is it just clever talk from them to put people off or are they as untouchable as they seem to suggest?

[MEGLOS]

Re: Egg Card Overlimit fees

Post 9 supermac

[supermac9]

Re: Egg Card Overlimit fees

Egg are still playing hardball with this one - LBA simply produced another rejection. FOS next on the list.
I'll keep plugging away.