Date: Wed, 17 Aug 2005 18:03:29 +0100
From: Jason 
Newsgroups: uk.finance
Subject: Re: Egg balance transfers - beware

Chris Blunt wrote:
> Some time ago, I received an email from Egg offering me a balance
> transfer on my card at a promotional rate of 3.9%.
> 
> Within the text of that email the following wording appeared. "There
> are no fees involved and you can transfer any amount right up to your
> credit limit."
> 
> I did exactly that, and transferred a balance right up to the level of
> my credit limit. A few days later my statement of account was produced
> to which they had added not only interest for the balance, but a £20
> "overlimit fee". Because I was right up to my limit, the interest
> added had taken me a little over it.
> 
> I can see that while they may have been technically correct in doing
> that, I do think it was a little unfair because by specifically
> inviting me take a balance transfer right up to my limit they were in
> fact encouraging me to do something which would inevitably result in
> me breaking the conditions of my agreement with them, so incurring a
> penalty.
> 
> To make it worse, they have also been adding interest to the overlimit
> fee at their merchandise rate of 15.9% ever since. Because of the
> order in which they apply repayments made to the account I'm now
> unable to pay off the charge for the overlimit fee until I have
> completely repaid the balance transfer.
> 
> Just be cautious when accepting invitations like this as doing so may
> result in you incurring a charge for breach of your agreement.
> 
> Chris

Chris,
did you call and speak to Egg?  My personal experiences with Egg have 
been very good. When I exceeded my limit and the fees would have caused 
big problems, they agreed to waive the fee.

Its probably too late now, but I'd certainly call and ask if they can help.

Jason
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