Egg Policy Change ?

a11waysindebt

http://news.bbc.co.uk/1/hi/business/7222336.stm

rolf

I received my letter yesterday. This has nothing to do with risk profile. Egg are trying to enhance their reputation.

In fact, they are becoming more risky. The reason they cancelled me is obviously because I always pay in full and I rarely spend more than a tenner a month. So they're not making any money out of me.

They're treading dangerous ground by publically announcing that they are removing risky customers. Imagine if your car was declined and you didn't get the letter. You could sue them for making you look bad.

Good riddance Egg and Citi, I hope you go bankrupt.

xnetco

What happens to people with loans on special arrangements? Are they going to call in this debt?

Tim

monkeyspanner

I haven't got an Egg credit card but have several credit cards some of which I rarely use and others that I always pay off monthly. Cancelled a few last year that I did not use and was practically begged not to cancel, offered inducements to stay etc.

It will be interesting to see what happens but it seems that somebody has taken a very simplistic view to currently low profit/unprofitable accounts. I always thought that the banks liked to hang onto customers on the basis that sooner or later they would make money out of them. Otherwise why do they try so hard to attract students who in the main have to be a bad short term risk. They rely on customer inertia to hang onto customers (I've banked with the same bank for over 35 years - God knows why because they aren't that good) but now banks seem to think there are no limits to the liberties they can take on customer service and changing service conditions. To dump this number of customers seems madness and a great marketing opportunity for another bank.

I think I will advise my partner to move her Egg savings before the queues start forming online.

Are all banks now run by wide-boys and idiots as on the series of TV ads? Good adverts but I haven't registered which bank.

kibblerok

Perhaps egg are about to do a northern rock and can't afford to have the potential credit overhead or to borrow more?

Although a part of citigroup... egg haven't been exactly rolling in profit.

trisontana

kibblerok wrote: »

Perhaps egg are about to do a northern rock and can't afford to have the potential credit overhead or to borrow more?

Although a part of citigroup... egg haven't been exactly rolling in profit.

It's Citi who are in worst trouble. They are virtually bankrupt.

Clariman

Egg PR & Media have just sent me a revised statement. Full details posted here on stoozing site.

Clariman

Psiloman

Another story picking up on the negative Egg situation

http://www.customerthink.com/blog/internet_bank_egg_fires_161_000_customers

Regards

Psiloman

According to R4's PM the Finance Minister is referring the matter to the FSA!!

trisontana

Clariman wrote: »

Egg PR & Media have just sent me a revised statement. Full details posted here on stoozing site.

Clariman

I see there is no mention of this :- "It said customers were chosen if their credit profile had deteriorated since they had joined Egg" taken from the original press-statement. Are they now saying that it's not just customers with a poor credit-record that are being targeted?