I've just received an email from Egg - sent at 6:13pm today.
As of tomorrow the APR rate goes up, and afaik this is the only notification i`ve received of this change.
That`s less than 6 hours until it comes into effect, and i`m not impressed.
Should there be a statutory minimum notice period for changes of this nature ?
According to egg's terms and conditions , Yes, so they are breaching them:
17.3 We may make interest rate changes or any other changes to this Agreement which are not to your disadvantage immediately and will tell you about them within thirty days after the change. These changes will be so notified by statement notice, letter, by sending you an e-mail, or separate written notice. 17.4 Where the change is to increase the interest rate, provided you have repaid all amounts you owe us and have notified us that the increase in interest rate is the reason for doing so, you have the right to close your Account at any time up to 60 days from the date of the notice referred to in 17.3, so that the higher interest rate does not apply to your Account.mrcheerful
"mrcheerful ." wrote
Which bit of those conditions do you think Egg are breaching?
Under 17.4, if the OP isn't happy with the rate increase, they get to close the account within 60 days and the higher interest rate will never be applied -- they'll stay at the previous rate until the a/c is closed.
The bit that says: "We may make.......rate changes............which are NOT to your disadvantage immediately"
A rise is to your disadvantage (if you owe anything).
mrcheerful
A rise is also to your disadvantage if you are ever going to owe them anything in the future.
While 17.3 covers changes *not* to your disadvantage, 17.4 covers other changes (i.e. to your disadvantage), and clearly implies that they can
*also* make *them* immediately, but will reverse their effect if (or rather only if) you close your account because of them.Basically what this does is put you in the same position as if they had given you plenty of notice (well, 60 days at any rate), giving you the opportunity to take your business elsewhere during the notice period.
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