Egg Policy Change ?

SarahNeedle1872

Sorry.... both Egg visa. Does that make a diff btw? Or is that what ur trying to establish?

gekko21

Hi G-G - no they don't expect you to pay the balance off immediately. They will keep your account open until you pay it off but in the meantime, you won't be able to use your card to buy anything.

My card was due to expire at the end of March this year and I wondered if that had anything to do with why my account was reviewed. When I logged on to my account I was taken to a page to activate my new card, which was a bit odd as I haven't received one (and obviously aren't going to now). I could still access my account details though.

tipsychick

SarahNeedle1872 wrote: »

Sorry.... both Egg visa. Does that make a diff btw? Or is that what ur trying to establish?

Yes - just trying to establish which card is being hit, or if it's both.

At this very early stage, anecdotal evidence suggests it's Egg Visa not Egg Money (Mastercard).

ally.b-s

Last week Goldfish Mastercard wrote to me saying that my limit was being cut from £7500 to £4700. At present I have £4600 of debt on that card. So effectively I can no longer use it. The excuse they gave was that they are reviewing their accounts and I am a credit risk. I am an excellent customer!

I am also an Egg Visa cutomer. At present I owe them nothing. However, when a 0% balance transfer comes up I switch my balance to them. Then when this runs out I switch back to Goldfish. I suspect Egg will be writing to me soon. I've been a customer since Egg was launched.:mad:

newmoon

Hi
Just to let all those know that have good credit ratings and are receiving this ominous letter, I have a terrible credit rating and have approached two of my card companies to make an arrangement to repay over a period of time and cease interest not approached Egg yet was going to keep that card!!
I haven't received any letter??? and have a very large balance but have been paying minimum payment regularly.

Paul_Herring

SarahNeedle1872 wrote: »

YorkshireBoy wrote: »

Could I ask please, that when people report they've received the letter they say which card it releates to, ie the Egg Card (Visa) or Egg Money card (Mastercard)?

Sorry.... both Egg visa. Does that make a diff btw? Or is that what ur trying to establish?

The two cards are supposed to be used differently - Card/Visa is supposed to be run as a 'normal credit card' - i.e. spend on it, get bill, pay off some/most of the debt, spend again... This card has limits up to around £15,000.

Money/MC is supposed to be front-loaded (i.e. positive balance,) then that money spent, get bill, front-load again... This card rarely has limits above £3,000.

I suspect YB is trying to determine a reason behind the cancellations.

If it's the Card/Visa's being cut, then they're trying to reduce the amount of money they're lending out.

If it's the Money/MC cards, then we'd ask if you're using them 'as intended' or 'as a normal card,' and seeing if they're targeting a particular group of people.

SarahNeedle1872

I would suspect from looking at the previous posts that they are trying to 'ditch' the customers that aren't making them any money, and those of us with balances still on our cards will be left alone for now, unless it looks like we can't pay the money back!

YorkshireBoy

SarahNeedle1872 wrote: »

I would suspect from looking at the previous posts that they are trying to 'ditch' the customers that aren't making them any money, and those of us with balances still on our cards will be left alone for now, unless it looks like we can't pay the money back!

In years gone by, the ideal credit card customer was a 'revolver', ie one that continually paid the 2% minimum payment...and then spent it again the following month! A steady stream of circa 15.9% APR income for the lender was easy to come by.

With the current credit crunch lenders are getting very nervous of defaults, and so appear to be taking a two-pronged attack...

1. Removing the facility to spend any more money by taking the card off you, and

2. Monitoring your account and continually, as soon as you make a large repayment, lowering the credit limit to match your indebtedness. They will realise that, for many people, the reason the customer has been able to make such a large payment is that they have taken on an additional credit facility elsewhere in order to balance transfer debt away. If the customer then continues to spend on the (in this case, Egg) card then they will be getting further into debt.

Psiloman

YorkshireBoy, whilst agree with what you are saying I think there is the 3rd Category as outlined by Sarah, which I definately fall into i.e. someone who's credit card makes no money for Egg/Citi!

DuWolf

tipsychick wrote: »

DuWolf

Would you mind saying if it's Egg Visa or Egg Money (Mastercard), please?

Thanks very much.

Egg Visa

;o)

G-G wrote: »

So what happens if you have a balance on your Credit Card, are you supposed to pay it all off in one go?

They did say i would not be able to withdraw or make any further purchases but would be able to continue payments as they were not expecting anyone to make a full payment.