Egg Policy Change ?

slowe

I had a letter but no online message

supersavershal

I havnt had a letter or an online message although I really did expect one.
My profile is mid thirties, high earner, green visa card £5k limit, £3k outstanding, no missed payments I pay about £20 over minimum each month.
I have 3 other cc with various limits but no balances.I have a secured loan and an unsecured loan.Have recently been declined for new 0% cards.
I have never missed any cc or loan repayments but I do have lots of credit.

netlang

withabix wrote: »

There are two obvious reasons why Citi/Egg are closing your accounts down:

1) You are a good credit risk and pay your account off in full every month/most months. Egg make no money from you.

2) You have a low credit score and are considered a risk. You keep a balance on your account and Egg currently make money from you but think you may be a potential future defaulter.

Neither of the above types of person are any use to Egg/Citi at all, therefore they don't want you as a customer.

I meet number 1 here and have not received a letter nor have any online message

frisa

I emailed egg at the weekend to query whether I was one of the 161,000 and received the following response:

“Following our recent review of all of our card customers I can confirm your account is not one of those affected so you can continue using your Egg Card as normal.”

For those trying to work out egg’s arcane logic here’s my profile:

Age 50, low spend per month £300 - £500 paid in full by DD, Credit Limit £4.8K @ 16.9%, Only CC, No MM, Egg Visa

netlang

My profile is 44 years old spend about £1.5K per month paid in full by DD with a credit limit of £5900 at 7.9% on mastercard

Uniscots97

Well I am one of those affected and am quite speechless. Its Egg Money they are cancelling and I had to find out via email not a letter. I pay more than the minimum payment every month and yes I also have a loan with them. I've never missed a payment at all and when I transferred money in to pay for a car they were all over me. Once everything is paid off with them I won't be using them again. Could this be to get rid of all their products that have a sub 10% apr? My rate was 7%.

ffacoffipawb

withabix wrote: »

There are two obvious reasons why Citi/Egg are closing your accounts down:

1) You are a good credit risk and pay your account off in full every month/most months. Egg make no money from you.

2) You have a low credit score and are considered a risk. You keep a balance on your account and Egg currently make money from you but think you may be a potential future defaulter.

Neither of the above types of person are any use to Egg/Citi at all, therefore they don't want you as a customer.

I'm in 1) and have not had a letter. Don't use money manager. Only have egg money with £10k limit, paid off in full every month (£300-£500 monthly spend). Also egg savings with zero balance.

Don't like egg's (American) attitude so will probably close both these down in the Summer. Don't need a SBT card and Morgan Stanley (now Goldfish) card, Tesco credit card and Nectar credit card good enough for cashback and points.

ado

Anyone like to hazard a guess as to how many people might have been binned due to the 'risk' of Egg not making a profit from us. Clariman's survey says that 38% of people who responded had little or no balance which equates to 61180!

I would be surprised if in reality the figure was that high partly because the poll probably attracted a disproportionately high number of responses from people who were angry with Egg's actions. Still even if 1000 people have been affected that is 1000 too many given the original reason for the cancellation.

As news reports have diminished today I suggest that if you still feel aggrieved you should contact your MP, the OFT and Egg to register your concerns.

city_girl_4

I sent a stinking message online and got the standard reply mentioned previously. I tried to send a further message but the system wont allow any more messages to be sent – meltdown!

So I called Egg today and had a blazing row with a Team Leader – mainly in fury at being given stock answers. I asked to speak to the 'Head of credit cards' who sent out the letters but was told he would not take any calls!! Surprise surprise!

The team leader told me that my card was cancelled as ‘I did not fit the criteria they had laid down for customers however no one at Egg would be able to tell me what that criteria is'!!! How ridiculous. He offered to lodge a formal complaint but told me I would not get any further if I did!

I will be seeking legal advice regarding this. They have every right to cancel my agreement but I refuse to be publicly branded a credit risk.

I don’t use MM by the way, never have.

Geoffo_M

The backlash at last. Have a look here:-

http://news.bbc.co.uk/1/hi/business/7225931.stm

Could get interesting if someone makes an official complaint