Egg Speculation

lynseydee

Has anyone else heard about what could potentially be happening with Egg. I have had this message posted in one of my other threads and don't know what I should do for the best.



i would steer clear of egg at the moment as there is speculation that its owners are trying to sell it off as its a bit of a loss making machine. i have an egg card and after increasing my limit and me being within my limit, they have now told me they want the card back and i cant spend any more on it. if there is a reason they havent told me. however, i suspect they may be starting to try and claw some money back to make it a more appeaing buy out prospect. hence they will prob not be the most competitive in the market over the next few months.

Dazza.mk_2

There has been speculation that Egg would be sold off for at least a couple of years, but policy seems to have changed recently as it was only 10 months ago that the Pru shelled out £200M to buy out the minority partner

Although apparently the Pru has recieved an aproach from Citi-Group

http://www.timesonline.co.uk/article/0,,2095-2496141,00.html

lynseydee

Do you think it is still safe to do balance transfers with them? I also have a loan with them, what would happen with that?

thumshie

Even if they sell your company your T&C's would still be valid. i.e. if it's a fixed rate loan or x% for y months they'll have to honour that. but if it's at a variable rate, the new owner may up the rate. Also not read your original thread, but the quoted person doesn't say that they pay it off in full, nor that they even make the minimum repayment, jus tthat they're within the credit limit, could mean they owe £9,999 with a limit of £10,000 and not made a payment in months. That could be why they want the card back..

I'd be more worried as a Cahoot customer - abbey/banco Santander parent company like pru- have stopped new accounts being opened and raised their APR's by almost 50%

sinizterguy

They seem fine. I have been happily spending on my card and there doesnt seem to be any problem.

Maybe something to do with your account ?

tom188

Nothing untoward will happen even if they get taken over. There is absolutely no suggestion they are going to go bust and if they do get sold off your existing terms and conditions will remain if force.

Personally i dont see what the poster in your other thread was driving at with their comment.

CopperPlate_2

Pru have rejected speculation that they are going to sell Egg off to Citi. Apparently they declared in the press last week their commitment to keeping Egg having shelled out a premium price to buy out minority shareholders a year or so ago. The Pru shareholders will want Egg to make some kind of return for them because of that I'd say.

newfoundglory

i've been happily enjoying the 1% cash back on my Egg Money card since 2005 - the card i use to buy absolutely everything everywhere. I live off my Egg Money card every day. But, i noticed recently the 1% is now only guaranteed until 2007 - so i think come Jan we are gonna see a mega cut-back on this.

CopperPlate_2

In the same vein relating to cahoot. It seems that Abbey are almost mothballing cahoot as a provider of anything other than a savings and current account. They've got rid of the mortgage/loans and credit card offers which is disappointing as Banco Santander initially said at the takeover they would use cahoot as a test bed for new and innovative products. Obviously just a lot of hot air to talk the shareholders into bed and keep the City interested.

CopperPlate_2

newfoundglory wrote:

i've been happily enjoying the 1% cash back on my Egg Money card since 2005 - the card i use to buy absolutely everything everywhere. I live off my Egg Money card every day. But, i noticed recently the 1% is now only guaranteed until 2007 - so i think come Jan we are gonna see a mega cut-back on this.

I'd say anything ranging from 0.5% down to the horrifying 0.25% of the sister Egg Card. Perhaps a bit Draconian, but I think there will be a cut after January sometime soon.

newfoundglory

Yes, i've been waiting for this cash back cut for a while now. More than a year at 1% was too good to last. Well that will be me gone as an Egg customer! I'll have to find some other useful card to use instead. Any suggestions...