Egg Policy Change ?

h34v3ns3nt

Ha, I have just had this letter this morning and after looking at it I am in complete shock. I have had my EGG Mastercard (Egg Money) just over a year. I got this card to sort out my money and my expenditure.

I have a Mortgage and a Current Account with the Halifax and a VISA debit card with them.

I have fairly recently made sure all my bills (household) are taken from my current account around the 1st of every month and the rest was to spend with. Unfortunately my spending got a little out of hand over the last year and as a result I have had to increase my overdraft to £2500! My financially savvy mate told me I would benefit from EGG's Money CC. So I signed up! Having never owned a CC before I knew it was not to be used willy nilly. So I capped my credit limit to £500 and made £400/month deposits into the account to set myself a budget.

Having just been told I am a high risk customer I signed up with Credit Expert for their 30 day trial to see what my Credit Score really is (expecting it to be very good)

I never borrowed on the card but did all my spending with it and stuck to my £400 budget and my Current Account overdraft has been slowly diminishing.

Now seeing this letter I can only assume EGG are not making any money from me and are indeed giving me money instead! (cashback, interest on positive balance)

This was afterall the reason I got this card and the way it was sold to me (by EGG and my mate, who will also likely get this letter too but is in Dallas ATM)

Having never owned a CC before and getting this one cancelled I can only assume more CC lenders will go down the same route as EGG what with the financial credit crunch round the world ATM. It would seem I might not be allowed a CC in the future due to my circumstances of being a financially savvy customer

After reading the FAQ's on EGG's site I expect the money in credit to be refunded to my Halifax Current Account soonish.

What is the world coming to?

jonnyboy80

But surely if Egg are cancelling all these accounts, most of whom appear to have a good credit history based on this thread, aren't Egg now going to be relying on those accounts/customers who are more likely to struggle and may end up on DMP, which I thought the credit card companies hate..?? Either way, there 'customer service' on this issue is disgraceful in my opinion!!

shezza

I too received the letter yesterday for my Egg card (Visa by the way). I have read all the posts on this thread, and I don't pay off my card every month and I am near my credit limit, I pay my card by direct debit every month, and I did have a bad run with them last year (OH on long term sick and no money coming in), however I have caught up all the arrears.

My confusion is that I have a loan with Citi Financial (which I think is part of the Citi group), this finishes next month and they have been bombarding me with telephone calls saying that I have a perfect credit rating with them and do I want to take another loan out for a lot more than the original loan.

SO my question is how can I be classed as a risk for my card but a perfect candidate for a loan which has a lower interest rate, surely they would make more cash out of me with the card.

h34v3ns3nt

Halloway wrote: »

As an external observer (I don't have any Egg accounts) the evidence thus far is that Egg are ditching customers from which is makes little profit, namely those who pay off their balance every months and rarely, if ever, make a late payment.

If that is indeed the case then I'd say that that is the company's prerogative. However, insulting your customers by cancelling their credit cards in such a way is not a particularly sensible or mature thing to do. What is most invidious is Egg's broadbrush labelling of these customers as 'risky', when patently very many of them are not in the least bit risky.

There is also a broader issue here. Amongst the many things for which Joe Public is belaboured is the irresponsible use of credit, in other words, taking on debt which we cannot afford. Yet here we have an ostensible case of sensible, responsible customers being penalised for precisely the opposite - namely being sensible, responsible users of credit.

If, as someone has suggested, Citigroup is financially on its uppers, then if this is the type of customer service it practices then it is no wonder. Egg used to be well-respected brand and it looks as though it is now in terminal decline.

My thoughts exactly ^ Absolutely disgusting behaviour :mad:

Psiloman

[FONT=Arial, Helvetica, sans-serif] "Egg's values Our core values at Egg are honesty, integrity and respect for people. We aspire to be simple, transparent, mutually beneficial, empathetic, liberating and fresh and modern. These values are very important to us and are right at the heart of everything we do.

We treat our customers fairly and as we'd like to be treated ourselves."

You've just got to laugh
[/FONT]

Psiloman

Egg's 'risky' customers answer back:

http://news.bbc.co.uk/1/hi/business/7223813.stm

The tide is slowly turning

Clariman

The poll at the stoozing site is not showing any conclusive pattern yet, although of the 28 who have said they have had the card withdrawn only 5 acknowledge that they have had some credit issues, compared to 9 who pay it off in full every month.

Clariman

SoozyJ22

MinBlack wrote: »

For those of you have had the letter is there anything when you log into your account online which says that you credit is being withdrawn?

I've got an Egg Visa and fully expected the letter but it has not arrived yet!

Min

I'd like to know this too.

I got my card for the quidco cashback, set up a full balance DD and then used it for one purchase. However after a hard sell phone call disguised as a friendly 'welcome to egg, let's make sure you get the best from your card' I decided I didn't want anything more to do with them. I've not yet got round to cancelling, but even if they don't cancel my card I'll definitely be writing to cancel myself as I really don't want to be associated with a company who treats its customers the way it's been treating those who've had their cards cancelled in spite of good credit.

Psiloman

No there is no indication when I log in to my account to say they are cancelling the account.

ado

I think that Egg have made a spectacular PR blunder and that this will cost them a lot of money. I have savings with them which I am about to move although I will leave £1 there to keep the account open to ensure that they still have to administer it. I will also tell anyone who will listen that that they should not deal with Egg and I have posted comments on every website that I have found putting my side of the story.

They scared me into thinking that I had bad credit and that I must have been a victim of identity fraud. Despite comments on this website and many others challenging Egg's story their PR machine continues to ignore the facts and carries on with its spin.