Egg Card cancellation without notice

Paul_Herring

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.

Per T&C's? Yes, it's acceptable. They even pointed out the clause.

Per usual behaviour for a credit card company? Yes. They all do it. And what you deem to be 'exemplary' does not need to match the CC company's definition. Witness all those who claim CC companies dump people for being "unprofitable." (i.e those who spend and pay off the total every month, which ignores the fact that those who regularly spend on cards do still make a profit for them.)

I'm wondering how many people you're expecting to (seriously) say no it's not acceptable. You're perhaps expecting the 'ethical' argument. Which I seriously doubt could be applied to any financial institution.

Regarding your flippant disregard of my earlier comment, perhaps I need to rephrase it:

Don't depend on only one credit card - you should have at least two (from different companies) so that such behaviour from one doesn't leave you in the lurch.

Use this as an opportunity to apply for cards with two other companies. I suggest, perhaps though, leaving the applications a couple of months apart.

Susievintage

Many thanks for all your replies. I needed to know (a) am I alone (it appears not), and (b) is it worth making a fuss (and again, it appears not).

As Lisyloo says, it is rather short-sighted as I am now closing my three other Egg accounts and moving my multi-thousand pound savings elsewhere. And of course I have other credit cards, so that is not the concern.

Finally (and I realise that I will be accused of financial naivete), does no-one else think it sad that, having just come through this recent meltdown, banks (supervised by the FSA) are still wooing the riskiest customers and getting rid of the good ones? Talk about financial exclusion! Build up savings and they pay you 0.00000001% interest; pay off your credit card in full, and they dump you. And the moral of the story is....

NickX

Susievintage wrote: »

And the moral of the story is....

Moral is that there is little logic in the actions of the banks.

Moreso, they make their decisions for their benefit, there is no such thing as loyalty. My advice to the customer is to play the system and benefit from the bank's bizarre ways. For example, perhaps you could now get a new card with a nice 0% promotion and actually make some money from the banks for a change.

Good Luck.

Joe_Bloggs

@Susievintage
You mentioned in your last post that you had savings with Egg and they still refused to renew your egg money card. This must be a sign of mistrust or incompetence on their part. Consider examining your credit reports to see if you are who they think you are.

I do not think it is wise to close your accounts if you are getting a good interest rate. If you can't get a purchase rebate card from Egg/Citi Bank then the alternative is a 0% on purchase card. You can probably make more money on this if you deposit what you have spent in a savings account. Pay off the card before the 0% period expires and the interest is yours. This is termed a slow stooze.

J_B.

Susievintage

Just to update everyone: I have today received an email from Egg saying that they have reopened my account. Of course, I will not be using the card again, now that I now it can be cancelled at any moment.

However, I have asked Egg why it all happened in the first place - and whether it is likely to happen again - and will update the forum when I receive an answer.

izools

Good luck Susie.

With things the way they are in the credit arena, it's always adviseable to, from time to time, leave atleast a small balance on your credit card, so that they make a modicum of money out of you.

That and make sure you have a fallback card open at all times.

I'm sure you can appreciate Egg considering you not being the most profitable customer... call it Dead-heading