Egg Policy Change ?

city_girl_4

Oh I definitely think you work for Egg now obe!!!!

mrme

city_girl wrote: »

Why - they told the World I was a bad credit risk!!!!????

The situation with Northern Rock was OTT IMHO but it didn't sop thousands withdrawing all their cash!

Personally I couldn't care less what the world thinks about me and my credit status its my business (I know I contradict myself here - can't think how to say what I mean!!!). If egg have been unfair, which I agree it looks like they have they will pay the price. Just give it a few days and everybody will know the real reasons. Although they can't win as if they say okay we have only kept profitable customers (bad credit score, late minimum payments etc) they will offend the remaining customers :rotfl: What I am trying to say is give it a few days and all should become clearer.

BlushingRose

I'm worried by this news as we've just transfered some money to Egg of a 0% balence transfer, what we don't want is for them to close our account!

red74

I have't picked up my mail yet so don't know whether or not I have received a letter, although seeing as I haven't used my card since paying off a BT nearly 2 years ago, and whilst I haven't checked my credit rating there was nothing there to give a couple of mortgage providers the heebeegeebies, I suspect I will get one. But if I haven't, I will be improving my credit rating by closing the account myself. So thank you Egg for providing me with the motivtion to do it.:p

I'm only doing this as I have another 5 credit cards to give me a good credit score. If it was my only card I'd make sure I got one from someone else first because not having any available credit does not do you any favours with potential lenders.

Merlot

Mrme, you are correct, no-one without the exception of Egg knows you are a customer who has received the letter.

Egg will be begging for you "good" customers to go back to them when we go into a recession and their profitable customers cannot repay their unsecured debts off, £1 token payment isn't going to keep Egg afloat....watch this space I say!

DifferentFromTheNorm

BlushingRose wrote: »

I'm worried by this news as we've just transfered some money to Egg of a 0% balence transfer, what we don't want is for them to close our account!

It won't affect your account if you're a brand new customer and you won't lose any offer on the account as long as the payments go through as normal etc.

Niksan

I got rid of my egg card ages ago, egg were really competitive back in the day, the interest rates are now just poop, not sure why people still have them, on the other hand I still have the egg money, not received a letter yet but it is handy for purchasing over the net, and I tend to throw £200pm as a spending account manager for myself, so I don't max it and the receive little from me so I expect to get one, no loss for me, as I'll be moving my ISA from them come April, infact, egg money is the only thing egg have going for them, don't forget citigroup suffered big losses with the subprime fiasco, I'm just hoping out of the 160k people, a majority of those are risk/bad debt people, otherwise the last few months have been in vain..

furrygrass

Who do you work for right enough Obe One?

Your posting is just a tad patronising and adds nothing to my understanding of this decision.

I like many others pay my balance in full to Egg (Visa card). I did think they were rather quick to give me a £5000 limit and have never ever went anywhere near as far as that. I have been with them 5 years and no problems at all.

Perhaps a less rash step might have been to lower the credit limit on the account or even if they did go ahead to explain exactly what the risk was. Again, I like many others checked my Experian credit report and could see nothing there, no alarm bells at all. I think the reason they didn't do this is cause they are too lazy and they are fabricating the risk issue because they are not making money out of us and because the company allegedly is in a northern 'rocky' situation.

Psiloman

"The fact is as I said, if the account is being terminated then it will be a credit risk related issue."

The fact is that for some people it is only a crdit related issue as far as Egg are concerned. Their definition appears to differ from that of the credit checking agencies and peoples own payment and credit histories.

But hey why let the facts get in the way

ado

Obe_one wrote: »

Just to clear it all up for you, the majority of accounts affected are Egg Visa cards, there are a few Egg money cards affected but not many.

I find it amusing how most of the people receiving these letters claim to have near perfect credit files. I have had experience of dealing with customer's credit files in the past and you always here the same story. Everyone claims theirs to be unblemished. In truth when you have the information in front of you, you see that there is invariably something wrong.

It ranges from someone consistently missing payments or being over their agreed limit, to someone having 10 or more active accounts all with a few thousand pounds in outstanding debts right through to the seemingly insignificant 10-20 active products all with zero balances on them (the fact they don't have a balance but they are active accounts does not help your credit file, it shows the lender that if you really wanted to, you could spend 30k in one fell swoop and not have enough money left over to make each and every monthly payment)

The fact is this decision has been made for a reason, if you have received a letter then there WILL be something on either your account with Egg or the information supplied to them by the credit referencing agencies to consider you a risk.

We have too much a of a borrowing culture in society these days. If you can't afford it, don't buy it.

I praise this decision to be honest, it might encourage some people to begin paying back what they owe.

I have two credit cards, one of which is never used and my Egg card which is in use. I have never had a late payment on either card or exceeded my credit limit. I have a mortgage but I've never paid that late and until July last year I had a HP agreement but again I was never late paying it. Apart from that I have had two mobile phone contracts within the last year which resulted in credit searches but again I have never been late with payments. My mortgage is under £70k and I earn £50k pa. I also had over £10k in savings with Egg which was double my credit limit with them. I fail to see how any of this could have resulted in Egg branding me as high risk.