Egg refused to renew credit card when it expires

Mischa8

I got a letter from Egg yesterday saying words to the effect that they were not going to renew my credit card when it expires and that this was from looking at my records etc.

I don't have an outstanding balance (paid it all off last year) and made minimum payments otherwise. All in all I don't think I've ever missed a payment. However, about 18 months ago, I left a permanent job, started temping and started out on a slightly lower income and having to watch the pounds and pennies a bit more. As I was now being paid weekly rather than monthly I sometimes didn't have the minimum payment exactly in my current account and if the payment date was earlier this meant I could be late paying. So after a lot of toing and froing I spoke to Egg, and asked for the payment date to be moved until the end of every month, then I could transfer money from savings/current account etc and ensure I had enough for the minimum payment.

A while later I had a windfall and used this to pay off the Egg credit card.

I have a Virgin (MBNA?) card, with an outstanding balance (about £2K) which I make minimum repayments on, a Lloyds TSB Mastercard (unused no outstanding balance but big credit limit), and a Capital One credit card (ditto the Mastercard).

So I have cards, just am asking, why are Egg being so heavy handed and nasty now?

terryw

I would not take this personally. On other threads there are lots of MSE peeps who are finding much the same thing. I think generally the CC companies are just tightening up

molerat

3 reasons for them not to renew it.

You have a lot of available credit therefore you are at risk of maxing out and defaulting.
You are not using the card which is costing them money to maintain the account.
You have in the past had a poorish repayment history (how many late payments were there).

They are just doing an exercise of reducing their exposure and you fit the profile, don't take it personally.

Mischa8

molerat wrote: »

3 reasons for them not to renew it.

You have a lot of available credit therefore you are at risk of maxing out and defaulting.
You are not using the card which is costing them money to maintain the account.
You have in the past had a poorish repayment history (how many late payments were there).

They are just doing an exercise of reducing their exposure and you fit the profile, don't take it personally.

If you read my post you will see that I wrote I didn't think I'd made any late repayments - and I don't think I have ever done that! So that's not a 'Poorish repayment history'. Au contraire, as soon as my circs changed, I was straight on the phone to them trying to sort it out rather than run and hide and not pay.

Just thought I'd clear that little bit up there. I mean I really don't care, I'm not a card !!!!! anymore! But thanks...

molerat

The late payment thing wasn't quite clear (you said you hadn't missed a payment but didn't say no late payments) so strike that one out but the other 2 still fit in with their belt tightening exercise. As terryw pointed out, there are lots of others in the same situation.

I was suprised when my MBNA was renewed as I didn't use it but want to keep it for a rainy day because of the super balance transfer possibility so spend about £10 a month on it.

Mischa8

molerat wrote: »

The late payment thing wasn't quite clear (you said you hadn't missed a payment but didn't say no late payments) so strike that one out but the other 2 still fit in with their belt tightening exercise. As terryw pointed out, there are lots of others in the same situation.

I was suprised when my MBNA was renewed as I didn't use it but want to keep it for a rainy day because of the super balance transfer possibility so spend about £10 a month on it.

Yeah - makes a lot of sense when you look at it that way doesn't it? ie if they want to save on money when I'm not using the card. I can also see their dilemma too, in case I *do* max it out again and maybe default on it (not that I'd ever do that!).

lisyloo

You might not ever do that but considering the banking crisis the banks do have a responsibility to make sure they can cope with what they offer people.
Not just offer people loads and hope they don't take it all out at once.

Things have gone wrong with the banks and now things are exceptionally tight.
I think the comments about not taking it personally are spot on, It's just the credit crunch.

fozmcfc

I expect my Egg card to go the same way. Transferred the whole balance to Virgin last April time to leave me in credit by about £80. I only have one item for £6.99 come off each month and I pay the balance in full, so Egg earning sod all out of me really.

Mischa8

lisyloo wrote: »

You might not ever do that but considering the banking crisis the banks do have a responsibility to make sure they can cope with what they offer people.
Not just offer people loads and hope they don't take it all out at once.

Things have gone wrong with the banks and now things are exceptionally tight.
I think the comments about not taking it personally are spot on, It's just the credit crunch.

Yeah I know! Still feels a bit nasty though! *hurt* joking... ;-) Egg's customer services were REALLY nasty and unhelpful originally when I did try to change my payment date (unlike Virgin who were great) so it just smacks of more I dunno nastiness from them.

Honestly, I was really made to feel like a pariah, outcast, leper JUST because I suddenly had less money, had to temp and wanted to *shock horror* change the date of the payment to the end of the month so it suited me, ahem, the customer!

Virgin really listened, explained very patiently and worked things out with me, the lady from Egg almost me cry once or twice.

Then, when about 9 months later I got a small windfall and wisely used the vast majority to settle Egg's debt and clear the balance they couldn't have been nicer to me.

Egg are two faced rats who I wouldn't recommend to anyone now, sorry.