Egg Card cancellation without notice

Susievintage

I have had an Egg Money card for nine years - I pay off my balance in full each month, and have never owed them a penny. I also have a blameless credit record - after all, my day job is in financial crime prevention!

My Egg Money card was due for renewal at the end of September, but no replacement card came. When I contacted Egg, and after much searching, they sent me this explanation:

"When the Card comes to the expiry date our systems do checks just to make sure that we are willing to keep lending to yourself and on this occasion the information we got back from how you have run your account and from credit reference agencies Egg is not willing to keep lending to yourself. This will have no impacted on your credit history.
Under section 20 of the terms and conditions it does say that we can cancel the agreement and tell you about it afterwards, so we have not broken our contact with yourself."

Can they do this - just cancel my card without notice, and on no grounds whatsoever? Isn't there some requirement for financial institutions to tell their customers if they want to close their accounts? And why would they do it without reason? Has anyone else had this problem - someone at Egg did intimate that "things have changed" since Citibank took over.

withnell

Well, if they closed it with notice you could run up a massive debt on it....

irisandalex

Yep, I remember hearing about this happening previously.

It is completely up to them whether they offer you credit or not.

I think Egg might be known for wanting only the more 'profitable' clients!

I'm pretty sure I've heard Martin talking about this as well in the past.

bingy_burge

Yeh egg binned alot of customers who arent profitable.

People who rearely use the card or never pay any interest are being kicked out.

They are publically the biggest offender although there are some claiming other lenders are doing the same or just lowering credits limits for no justifiable reason.

withnell

To the OP - how often did you actually use the card?

I ask because while I never pay interest I put a fair volume (and value) of transactions through on my card each month

hattiefats

This happened to me too. Remember when it was on the news about 18 months ago. I had the same. Not really using card much but always paying it off. They sent me a letter and closed my account. Went to Barclaycard instead and am still with them now! Having said that I don't spend much on the barclaycard and they have just doubled my credit limit (which I have not used!!!). I'd just take your business elsewhere!

Susievintage

In answer to a couple of queries, it was my main credit card, so I was putting all transactions every month on it - about £1,500 per month, using it daily. So it wasn't a case of my not being a regular customer. But never a penny paid in interest...

My concern is that without notice - no letter or secure email - Egg left me without my main credit card - and they weren't to know what financial difficulties that might create.

Paul_Herring

My concern is that without notice [...] Egg left me without my main credit card - and they weren't to know what financial difficulties that might create.

Can you imagine the uproar if the credit card companies demanded detailed usage of their competitors cards from you, for just such an occasion?

I'm more surprised that for someone who pays off their bill every month, and (apparently) depends on it, you don't have a second card.

Susievintage

Have I upset you in some way, Mr Herring? Yes, I can imagine the uproar, and I am sorry that my financial arrangements surprise you. I personally am surprised that you would bother to reply to me if you have nothing helpful or illuminating to say on the subject.

My real question is not whether I am running my financial life to your standards, but whether it is acceptable for a credit card company simply to close an account which has been run in an exemplary fashion without giving any reason.

LeeSouthEast

Egg seem to do this every couple of years. A purge of 'unprofitable' clients.

lisyloo

but whether it is acceptable for a credit card company simply to close an account which has been run in an exemplary fashion without giving any reason.

Legally - yes.
Credit is not a right.
They do not need a reason to stop lending to you.
They are not interested in whether it causes you difficulties, they are in it to make money.

Morally and for good customer service I think they should have proactively told you even if they wanted to do it after the card had run out to protect themselves.
After all you are unlikely to use them in future if they treat you shoddily and they might want your business in future so it's a short sighted approach, however I think things are a little "panic stations" so they have bigger things to think about.

So I think it's shoddy treatment, but yes they don't have to lend you if they no longer want to.