Egg Policy Change ?

Clariman

The_Chicken wrote: »

I do wonder though if a "Have no outstanding balance for x months or more" might be a good option to add? Maybe 6 or 12 months? Just a thought.

It would have been good to have that as an option. The trouble with adding an option to an existing poll is that it makes the results a bit iffy. The way to do it would be to create a new poll with an improved set of options that included it ... but that would mean asking people to vote again. If you would like me to create a new poll and would be prepared to vote in it again, click the "Thanks" button on this post (I am not looking for thanks .... just an easy way to identify whether it is worth creating another poll).

Clariman

Gordon_the_Moron

Someone asked earlier in this thread to state which card people had withdrawn.

I have not got an Egg Visa card (never have) but I have an Egg Money Mastercard. It has a limit of £2500 on it.

I am probably one of the least profitable customers they have since I spend on the card (receiving cash back) but don't keep it very much in credit, I pay the balance off in full each month if it has not got a positive balance (it usually has a positive balance of a couple of hundred quid)

I am probably also not the best credit risk in the world, nothing adverse I always make payments and never go over my limits but I am only in my early 20s and live with parents so I have no property and a very short history.

When I heard the news story I thought it was bound to be me, not heard a dicky bird from them yet :j

The_Chicken

Clariman wrote: »

It would have been good to have that as an option. The trouble with adding an option to an existing poll is that it makes the results a bit iffy. The way to do it would be to create a new poll with an improved set of options that included it ... but that would mean asking people to vote again. If you would like me to create a new poll and would be prepared to vote in it again, click the "Thanks" button on this post (I am not looking for thanks .... just an easy way to identify whether it is worth creating another poll).

Clariman

You're probably right, may have missed the vote with the 'in the heat of the moment' voters who may never return. But it is interesting to see the results none the less.

Counter55

Post #365
‘…To be fair Egg has never really made any money, so is it really a surprise that they are one of the first banks to start dealing with unprofitable accounts?
…
I can understand people being upset, particularly about the style of the communications, but I still think it makes good business sense.
…
I don't think any kind of investigation will show anything, like someone else said if it's in the terms and conditions, and they give notice, they can demand payment in full. They are being quite decent by actually not demanding full payment, but just closing the facilities, and not allowing further spending.

The expression, mountain out of a molehill seems to apply.’

Post #322
‘That post was a direct reply to someone who said that you would be able to see that it was Egg who closed the account and because the account is being closed it would stop you from getting credit elsewhere.

I was simply correcting this person so that anyone else reading didn't become concerned that this was going to have a negative impact on their credit file. It will show as closed on the credit file, but any potential creditor in the future won't see who closed it or why.’

Post #316
‘Slander for what?

Who knows you have an Egg credit card that is going to be closed? Nobody will know other than you and Egg, unless you decide to tell someone.

I think this certainly could have been handled better by Egg but don't take things so personal. I'm sorry but I absolutely hate this 'Americanised' psyche of wanting compensation for anything that might upset someone.’

People are not disputing that Egg can decide to review their business and change their customer profile by giving notice to some unprofitable customers.

The problem is that Egg are putting the blame on customers for being high/ bad risks.
If unjustified and publicised than that would appear to be libel.

Egg / Citibank could of announced a few months ago that they were going to review accounts and close accounts that were high risk or unprofitable including where customers had cards but were not using them etc and closed the accounts as they came across them.

Egg will have to tell the credit reference agencies when accounts are closed. If this is done in one batch then it will suggest when doing a credit search on someone and that particular date is seen as the closure date that Egg closed the account because of the reasons they are giving – bad risk. That may affect your ability to get that good mortgage deal in a year or twos time.

‘I think this certainly could have been handled better by Egg but don't take things so personal. I'm sorry but I absolutely hate this 'Americanised' psyche of wanting compensation for anything that might upset someone.’


I agree that the idea of suing can be taken too far, but the ‘Americanised’ idea of customer service has led to far better services compared to some of the shoddy services we in the UK used to get. (OK, its ironic that this is happening after Egg was taken over by a US bank).
If you are not bothered by being labelled a high credit risk then fine, but many where it is not justified are bothered. It is not just the ‘upset’ created on the day you get the letter but the potential damage to their ability to get future credit. That is personal.

I think many will have a reasonable legal case for damages but will have a very good case to the FSA appeal scheme who I expect will see this kind of mass labelling of customers as a very bad business practice.

At the very least Egg should be saying what is going to be showing on the credit file if the account is blocked but minimum payments are being made - will the balance be above the available credit limit?


For those that have received a letter and it’s for Egg Money, what have Egg said about paying the cash back earned in the year so far?

Dylanwing

The Poll proved one thing though, Eggs PR about reducing credit risk and only closing high risk accounts was a complete pack of lies.

Clariman

Dylanwing wrote: »

The Poll proved one thing though, Eggs PR about reducing credit risk and only closing high risk accounts was a complete pack of lies.

"Lies" is a strong word, but I have emailed Egg's PR department to ask if they want to comment on the conclusions of our poll. Will keep you posted.

Clariman

BritBrat

I am not an EGG customer but I have written to my MP to ask him to ask the FSA to look into this.

What my concern is today it's EGG tomorrow it may be me.

MABLE

So in Egg's eyes they have weeded out the undesirable customers. As I have not received a letter and according to EGG will not be doing so I think I am in a strong positiion to bargain with them regarding my apr. They obviously do want to keep my business so puts me in a good position to get a better rate from my 17.9%. Will give them a ring and see what happens.

Dylanwing

Clariman - Sorry, I don't play Corporate word games, it has turned out not to be the truth, and the opposite of truth is lie. After the backlash, they seem to be furiously back-tracking as part of a damage limitation exercise, and I suspect we will soon hear the excuse that many letters were 'sent in error'. My suspicion is that they wanted to close the unprofitable accounts on the back of the credit risk review, and miscalculated the reaction. Maybe US consumers and media are more tolerant, maybe they forgot that they are not one of the Big Boys in the UK market.

trisontana

Here is a very interesting article from the Banking Times. As you can see, they have seen behind Egg's "high risk customer" statement and found the truth. It's also interesting to see what a mess Citi are in.

http://www.bankingtimes.co.uk/02022008-egg-drops-unprofitable-customers/