Your egg card will not be renewed - unfair practice?

Chinn

Hi,
I've been lurking here for a while and thought I'd get involved to see if anyone else has come across this.

I have an egg card, had it for many years but a couple of years ago I stopped using it and started keeping it as a "back up" as I travel a lot for work and like to keep a spare card out of my wallet in case of an emergency.

Anyway, I use the egg money manager facility to manage all my on line banking stuff when I'm in the UK. It's very good and a service I would actually consider paying for. I use money manager almost daily.

Out of the blue I received a letter with the title above, because I haven't used the card for 18 months they say it's their practice to close accounts when this happens.

They didn't tell me in writing or by email that they intended to do this, if they had I would have put a few quid on it and kept it "alive". So, I contacted them via secure email to see what I could do about it.

I have to say their response was pretty unhelpful - this is our practice and it's happening. No new information, no flexibility, help or advice just a basic reinforcement of their letter without deviation.

Now I have an excellent credit history, never overdrawn, employed home owner with equity, several credit cards that get paid off every month - basically a financially boring bloke, as "un-risky" as it comes.

This attitude of eggs seems rather daft, poor practice and I dare say counter productive. If they wanted me to use the card then all they had to do was ask or point out their well hidden terms. By "not renewing" the card I can't use it even though I want to so what does it achieve for egg?

egg have effectively turned me from a promoter to a detractor in one letter, forcing me to look elsewhere for services and being pretty upset in doing so.

I hope this doesn't put any marks on my credit rating, I guess it shouldn't but that's applying logic and egg don't seem to use that.

I'm off to activate the First Direct service similar to egg, unless anyone has any words of wisdom for me and can save me a little hassle?

Thanks for reading what turned into a bit of a rant

lisyloo

Now I have an excellent credit history, never overdrawn, employed home owner with equity, several credit cards that get paid off every month - basically a financially boring bloke, as "un-risky" as it comes.

and you are a cost if you aren't using the card.
They are getting no payment from you or from retailers.
What do you think is in it for them?

They didn't say you were a risk.
I'm speculating but I think it's because you are a cost not a risk.

By "not renewing" the card I can't use it even though I want to so what does it achieve for egg?

Saves them money - on cards, admin, keeping your data secure, backing it up, sending you changes to terms and conditions, maintaining you account etc.

I hope this doesn't put any marks on my credit rating

The account will show as "settled". This is indistinguishable from you closing the account yourself. It may actually improve your credit rating, as it could improve your available credit.

unless anyone has any words of wisdom for me and can save me a little hassle?

Sorry.
I agreee that Egg could have handled it better and maybe kept your custom, rather than making you an enemy.
perhaps they think if they invited you to use the card, then you'd put one purchase on it every 3 months and still be a cost to them.

Unfortunately they can decline to renew and there is nothing you can do.
You could compalin about the way they'd handled it but personally I wouldn't bother.

Dawning

Egg did that to me a couple of years ago. Contrast with Ulster Bank who sent me a nice letter reminding me that I hadn't used their card in some time, and explaining that if the card wasn't used between the date of the letter and my card expiry date - 6 months later - they would close my account. They also offered me a nice 0% interest deal to encourage me to use the card againg. Seems reasonable to me. Not sure why Egg have to be quite so lacking in customer service.
Agree with lisyloo - probably not much point bothering to write a complaint letter.

Chinn

Thanks guys, I can see that egg use offshore "service" agents - all they do is repeat the contents of their first letter - seems egg do not want me to use the card which I'm quite happy to do - I'm not after something for nothing. I'm really happy to put a few grand through it if that's what they want (as I spend a lot on travel for business expenses that wouldn't take many weeks).

It's a real shame as I've been a customer with then for probably 10+ years. It really is a crazy world!

CLAPTON

increasingly CC companies won't accept the keeping a/cs not being used regularly

some follow the Egg approach; simply say they are closing it
others give you a period of time in which to use it otherwise they close it
nothing personal

so the lesson is if you want several CCs make sure you use them all regularly; I don't really see why it makes it a crazy world

nearlyrich

Sainsbury Bank just sent me a similar letter no worries it was one of my Stoozing cards back in the day and it's no benefit to me to use it now. FD set up to view other accounts is much better than Egg once you get it set up.

Hax

Also worth bearing in mind that after events of the last couple of years, banks are having to increase their reserves and one way to help with this is to reduce their exposure...

lisyloo

seems egg do not want me to use the card which I'm quite happy to do

But you didn't use it did you?

Why is it crazy for them to get rid of accounts that cost them money?
It's quite a sensible approach.

It hasn't kept you happy but perhaps right now they are more interested in the short term.

Many people have come to expect credit as a right, but it isn't. It's purely on the lenders terms. You may not like those terms, but it's up to them to set them.

Chinn

I think I'm being misunderstood here - sure CC companies need to make money and I should use the card to enable them to do so - I completely agree with that. What makes it crazy is that I've said "OK, can I use the card now you have pointed this out, can I make you some money?" and they have said "Computer says no" - that's what's crazy. Even though I want to comply with their term they now won't even be able to recoup and costs they've expended on servicing my account when I wasn't using the card. So the "loss" they have endured will never be recouped and I will go away and recount this story to as many people as are interested.

Credit isn't a right and the terms are king that's true but what's the point in ambushing the unsuspecting with those terms when the only real loser is the CC company - I mean I have a fist full of other cards and my business is pretty decent to have. It's something of a pyrrhic victory for egg.

Never mind, it's egg's loss, they don't want me even though I will spend with them given the chance.

Anyway, time to draw it to a close - good debate all and thanks for your inputs.

zppp

Chinn wrote: »

I think I'm being misunderstood here

I'll be honest, I don't think you are.

dunstonh

Never mind, it's egg's loss, they don't want me even though I will spend with them given the chance.

Its not eggs loss. Its their gain as they were losing money on you. By not having you as a customer they will not suffer that loss.

Just because you say you will use the card is no guarantee you will. An in reality, if you are happy to use them now, why were you not using them before?