Egg Policy Change ?

mjwraw

Perhaps of equal worry is that this may be an indicator of where the industry is headed. I remember not so long ago that one or two compnaies started introducing balance transfer fees, and within a few months virtually every other company had followed suit. As there is nothing in credit card T&Cs to stop card companies from 'cherry picking' is this the start of a major change in respect of anyone who currently uses credit cards as a convenient 30-odd days interest free short term loan arrangement, (which is in effect what anyone who pays off their balance very month is doing), ???

jimbo26

This comment from Egg was interesting "We can certainly understand the concerns, but even if people are up-to-date with repayments, they are people we decided we no longer wish to lend money to regardless of their status."

When they talk of risk I think they are referring to the risk of not making money as opposed to losing it.

How much does it cost to service an account? No idea but I bet someone who pays the balance off each month is costing Egg more than someone with £2000 who has paid loads of interest over the years and then defaults.

Are people with an excellent credit history going to find it harder to get a card in future? Are CC companies targeting individuals who don't pay off the balance? Interesting times ahead for sure.

trisontana

I have just got round to watching today's Working Lunch which featured the Egg saga. The company are still insisting that it's all to do with customer's "declining credit scores" and denied that they were only ditching unprofitable customers. They said the scoring was based on such things as late or missed payments , the number of other cards held and "other matters".

This still doesn't explain why so many people who always pay off the balance every month and seem to have a near perfect credit rating with such people as Experian are being ditched.

jimbo26

It seems Egg are contradicting themselves.

DGJsaver

What happens to the balance , say that i owe £1800 , which i do , if they pulled the plug on me tommorow , what would i do ?!?

Dan

jimbo26

Carrying on paying it off.

DGJsaver

jimbo26 wrote: »

Carrying on paying it off.

so your account would be `live` so to speak , but only for the purposes of paying it , rather than servicing/using it ?

Uniscots97

So how would egg pulling these cards affect someone's credit rating?

sandman2ooo

I was pretty worried since I have an Egg Visa, so I messaged them. My "profile" is:

I am a PhD student, on low income, aged 24, and I pay my balance in full every month without fail.

I do have a good credit history and fortunately it appears I am fine to keep using my Egg card after receiving an email back from Egg. I am pretty happy with this, but I wouldn't say I am the kind of person that would make Egg much money as I never pay them interest, and never intend to either. I am the kind of person who, if I don't have the money for something, I simply do without. The response I received is below - I just thought I would add this information in case it was of some use.

Dear Alex

Following our acquisition by Citi, we've undertaken an extensive review of the risk profile of all of our card customers at Egg. As part of this review we've considered your account history and card usage activity together with a check on your overall situation with credit reference agencies.

Following this review I can confirm your Egg Card account has not been affected, so you can continue to use your account as normal. If you require further information please contact me.

Regards
<removed>
Internet Customer Services

jimbo26

DGJsaver wrote: »

so your account would be `live` so to speak , but only for the purposes of paying it , rather than servicing/using it ?

As I understand it that is exactly the case. They are not demanding immediate repayment. In effect the credit limit will be zero.