Egg Policy Change ?

itsnever2lateisit?

I don't have any egg cards, but do have a financial relationship with Citigroup. I am astonished that a finacial institution can behave in such a cavalier way, by PUBLICLY branding people bad risk, when the truth is that they are unprofitable. I have no problem with them ending arrangements that are not profitable, but I expect an institution with whom I entrust my money not to act dishonestly. Even the Banks trade association are peddling the same twaddle

Needless to say, I shall end my relationship with them on Monday, and seek to place my investments with a more trustworthy institution

500Triumph650

lisyloo wrote: »

Credit is a privilege not a right.

Credit may not be a 'right' but it is certainly not a privilege either.

Credit is a product (or a service if you prefer) like any other. The attitude quoted above is partly to blame for the ways banks have got away with treating their customers for so many years.

steveo67

I really can't see this behaviour in any other light than a panic move by Egg/Citygroup. The headline reason they trumpet blatantly doesn't add up with the reality of who they seem to be targeting. Having read a few things on here and in the wider financial press I'm personally not taking any chances on this whole house of cards. I've already moved most of my money out of my egg accounts and I'm setting up arrangments for the rest to follow on Monday before reality dawns on the rest of their customers.

Don't get left with Egg on your face...

LittleVoice

DifferentFromTheNorm wrote: »

I'm in no way defending what Egg has done because I don't think they've gone about it in the right way. But, I fail to see what there is to investigate.

I believe they can investigate how the decisions were made.

If they created a computer program to analyse accounts and automatically issue the "decision to close" letters and this is, as they have said, related to credit-worthiness, then they should explain their decision-making process (ie the factors that were included in the analyis). This they have refused to do.

Trollfever

Credit Cruuuuuunch.

From The Wall Street Journal:

<H1 class=articleTitle style="MARGIN: 10px 0px 0px">Citigroup Customers Get Hit With Their Own Cash Crunch

By David Enrich
Word Count: 415 | Companies Featured in This Article: Citigroup
Citigroup Inc. is one of the biggest victims of the credit crunch caused by the subprime-mortgage crisis. Some of its customers are suffering from a credit crunch of their own.
In the days leading up to Christmas, just when cash for gifts, tips and entertainment is essential, Citigroup cut the daily amount of money some customers could withdraw from its automated teller machines to about $500.

</H1>

chicken_legz

At the end of the day its in the T&C's that it can be done, there is nothing you can do.

Why people are making such a fuss about it I will never know, just proves that you need credit if you have to make such a song and dance about it.

If you have money and are not a risk why should having the account terminated matter? You should not need a credit card, I think its responsible lending and if my Egg card would have been closed I would just accept it and move on. Why not prove you are not a risk by getting a new credit card with someone else?

There is nothing stopping you applying for other cards at the end of the day!

DifferentFromTheNorm

LittleVoice wrote: »

I believe they can investigate how the decisions were made.

If they created a computer program to analyse accounts and automatically issue the "decision to close" letters and this is, as they have said, related to credit-worthiness, then they should explain their decision-making process. This they have refused to do.

I'm not trying to argue, but what says they should explain their decision making process?

Credit lenders aren't at liberty to explain what criteria they use when processing an application, so what law/rule/regulation states they should explain this decision to end an agreement?

The staff at Egg will give you information about how the decision has been made, they just can't go into specifics about each account. There's 3/4 things they looked at when they did the review:

1. Card usage patterns
2. Account history with Egg
3. How finances have been dealt with other financial institutions
4. Information given to them by credit ref agencies

3 & 4 are very similar. You could class this information as explaining their decision making process. It doesn't go into detail, but it does explain what they have looked at.

Maybe I'm wrong, but I still don't think there's anything to investigate. Sure it may not be nice for some people, but Egg are only doing what they have the right to do if they so wish.

johnsmiffy

Evening all! Reading this thread has made led me to register just so I can comment on Egg.

Like many, I have an Egg card (visa) that is almost maxed-out. I have never been over limit, or paid late. However, don't think my credit rating is that great, and a few months ago I called Egg to see if I could have a payment holiday for a couple of months as I was faced with a cashflow crisis over the xmas period. So, I was expecting the letter drop through the letterbox this morning.

Post arrived - nothing!

I have just called Egg, and to my astonishment (but not totally surprised as I have read this thread) I am NOT on the list to have my card cancelled!!!

In my call to Egg I mentioned the fact that Egg obviously make money out of me, so that is why I am not on the list! The reply I got was "oh, you have been reading the papers, the forums and watching the news!"

Think they have been rumbled!!!

LittleVoice

DifferentFromTheNorm wrote: »

I'm not trying to argue, but what says they should explain their decision making process?

I was thinking of my earlier post (#252).

And if the history of a particular customer doesn't lead you to believe that such an analysis would suggest their credit-worthiness had deteriorated since they had the card .......

br1zer

chicken_legz wrote: »

At the end of the day its in the T&C's that it can be done, there is nothing you can do.

Why people are making such a fuss about it I will never know, just proves that you need credit if you have to make such a song and dance about it.

If you have money and are not a risk why should having the account terminated matter? You should not need a credit card, I think its responsible lending and if my Egg card would have been closed I would just accept it and move on. Why not prove you are not a risk by getting a new credit card with someone else?

There is nothing stopping you applying for other cards at the end of the day!

The reason why most folk are enraged by this action is because if we allow Egg to get away with this one many other companies will follow suit and you will not be able to get a credit card with someone else!!!!

Also an account termination may have an adverse effect on your Credit Record