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MSE News: Barclaycard to buy 1.15 million Egg customers

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  • kerri_gt
    kerri_gt Posts: 11,202 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Xmas Saver!
    The only reason I have an Egg Money card is due to the cashback - if they stop it I will deff be cancelling my card - their interest rates aren't the most compeitive and I never get any offers like with Virgin Money (who regularly offer 0% periods on BT and/or purchases). Egg Money customer service is nothing to write home about either...so it will be bye bye Egg and thanks for all the cashback.
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  • marvin
    marvin Posts: 2,186 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker I've been Money Tipped!
    Because they bought the portfolio at a discount. If everyone leaves, lots of cash comes flooding in.


    Only if the people leaving hold a balance and don't pay the card off each month as, anyone who is in it only for cashback, should.

    Those who owe may well stay those who want cashback may go if the cashback goes.

    In my case I simply have to consider if I want to do business with a campany as morally corrupt as Barclays. As banks go (and all banks are largely bad) they are by far the worst.
    I started with nothing and I am proud to say I still have most of it left.
  • OllyM
    OllyM Posts: 370 Forumite
    Part of the Furniture
    dazza.mk wrote: »
    We might be migrated onto Barclaycardfreedom :eek::eek:

    Oh wow, I'm very much looking forward to that ;)
  • Niksan
    Niksan Posts: 309 Forumite
    edited 1 March 2011 at 1:50PM
    While it would be a shame for the 1% as much as I'd miss that I'd miss the facility the money manager has having all your accounts in one simple place, not sure why more banks don't follow suit on that. Still, don't Barclay's have a card that offer 1% cash back, if so I'd imagine it to stay the same, they just might offload a few more customers like what happened when Citigroup took over.
  • dazza.mk
    dazza.mk Posts: 1,927 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Niksan wrote: »
    While it would be a shame for the 1% as much as I'd miss that I'd miss the facility the money manager has having all your accounts in one simple place, not sure why more banks don't follow suit on that. Still, don't Barclay's have a card that offer 1% cash back, if so I'd imagine it to stay the same, they just might offload a few more customers like what happened when Citigroup took over.

    Who knows what will happen to that?, the press release only relates to the Credit card business (given Citi appears to have pretty much totally withdrawn from that market), they may keep Egg branded savings/investments/insurance etc?
  • Froggitt
    Froggitt Posts: 5,904 Forumite
    £200 cashback to hit my account this month :)

    Cashback stops......Im outta here.
    illegitimi non carborundum
  • thenudeone
    thenudeone Posts: 4,462 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    edited 1 March 2011 at 2:25PM
    Because they bought the portfolio at a discount. If everyone leaves, lots of cash comes flooding in.

    I cannot understand why the portfolio of Egg Money customers has been sold at a discount.
    It's hardly sub-prime. I would guess it has a better than average risk profile with more financially aware customers looking for cashback.

    Egg could have achieved the same effect itself by stopping or reducing the cashback or just closing all the accounts and withdrawing from the market. It's not as if they have a brand or reputation to keep, because there's not much else branded egg apart from the credit card.

    Someone please explain Citi's logic to me!!!
    We need the earth for food, water, and shelter.
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  • OllyM
    OllyM Posts: 370 Forumite
    Part of the Furniture
    Citi are actively trying to get rid of assets in Europe and I expect they didn't get a better offer from anywhere else!
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 1 March 2011 at 2:29PM
    The portfolio was bought at a discount mainly because Citi were keen to exit the market - who knows, maybe they didn't have the appetite to run the book down over the next few years and wanted to release some funds quickly.

    Barclaycard may well want to run it as a going concern. But they may not.
  • Niksan
    Niksan Posts: 309 Forumite
    dazza.mk wrote: »
    Who knows what will happen to that?, the press release only relates to the Credit card business (given Citi appears to have pretty much totally withdrawn from that market), they may keep Egg branded savings/investments/insurance etc?

    Maybe, but as they did away with the in black interest a while ago, on the grand scheme of things egg money just seems like a hub for managing multiple accounts in once place coupled with a low limit CC and not even with a competitive IR anymore. But maybe there's more to the package than I actually use. However, would be interesting to see what catergory Egg Money falls in.
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