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I've been trading online messages with the unhelpful (I'm being polite) people at Egg about how they have arrived at the 29.9% interest rate that they continue to apply to my account.
They have come back with the usual drivel about how complex it is, and that it is worked out from a combination of, amongst other things, the current economic climate (an excuse for most financial organisations to simply rip people off), my credit profile (which won't look great) and how I have managed my account since opening it.
The last of these is a strange one - I've had the account for years, most of it has been fine but I've had some recent difficulties maintaining payments.
I have asked them to give me more detail about how they have worked out my interest rate - are they obliged to provide this level of detail or can they simply do what they like without explanation?
Update:
Egg Reply:
As a business we will not be providing you with specific details as to how your interest rate has been determined and our Customer Relations Team will also not be able to provide you with this information.
I can see that we've already confirmed some of the factors.
We're unable to go into specific details on what criteria we use to determine how an account has been managed.
We do take into consideration how your account has been managed since it was opened so effectively this would be over the entire duration of the account.
Our costs of providing credit is one of the factors we use in determining all our customers interest rates.
When you applied for both your Egg Card and Egg Money card you agreed to the terms and conditions of a variable interest rate.
Condition 5.5 states "We may vary interest rates (apart from fixed rates) and Charges in accordance with Condition 19 of the Egg Card Conditions. The APR does not take these variations into account."
Condition 19.1 states "We can vary any interest rate (other than fixed rates). The variation may take account of factors that are personal to you such as the way in which you conduct your account or increased or decreased credit risk as well as factors that apply generally. We will give you at least 60 days advance notice in writing of interest rate increases and will send you a further notification during the notice period. Each notification will explain your rights under Condition 19.2. We will give you at least seven days' notice of interest rate decreases."
They have come back with the usual drivel about how complex it is, and that it is worked out from a combination of, amongst other things, the current economic climate (an excuse for most financial organisations to simply rip people off), my credit profile (which won't look great) and how I have managed my account since opening it.
The last of these is a strange one - I've had the account for years, most of it has been fine but I've had some recent difficulties maintaining payments.
I have asked them to give me more detail about how they have worked out my interest rate - are they obliged to provide this level of detail or can they simply do what they like without explanation?
Update:
Egg Reply:
As a business we will not be providing you with specific details as to how your interest rate has been determined and our Customer Relations Team will also not be able to provide you with this information.
I can see that we've already confirmed some of the factors.
We're unable to go into specific details on what criteria we use to determine how an account has been managed.
We do take into consideration how your account has been managed since it was opened so effectively this would be over the entire duration of the account.
Our costs of providing credit is one of the factors we use in determining all our customers interest rates.
When you applied for both your Egg Card and Egg Money card you agreed to the terms and conditions of a variable interest rate.
Condition 5.5 states "We may vary interest rates (apart from fixed rates) and Charges in accordance with Condition 19 of the Egg Card Conditions. The APR does not take these variations into account."
Condition 19.1 states "We can vary any interest rate (other than fixed rates). The variation may take account of factors that are personal to you such as the way in which you conduct your account or increased or decreased credit risk as well as factors that apply generally. We will give you at least 60 days advance notice in writing of interest rate increases and will send you a further notification during the notice period. Each notification will explain your rights under Condition 19.2. We will give you at least seven days' notice of interest rate decreases."
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