Have you had your Egg credit card closed? Take part in our poll...

carol99_2

We havent had a letter YET. We have an excellent credit record, we have never missed a payment on anything EVER.We do, however, fall into the age range. Still expecting a letter though as we hardly ever use the card . We had it for a 0% deal then 'tarted' elsewhere but kept it 'in case' and because we like money manager. We also have a savings account and an isa with them. I dont think its anything to do with whether your a good customer. If they think your a serious non-payer then you're out, if you're a moderate payer you're in as they can make money out of charges from you and you're not a serious risk. Therefore, if you're a good payer but they don't think they can flog you anything else or make money out of you, you're out too. I remember a few years ago bank customers were categorised into fruits - they don't want the lemons, they want the oranges as they can squeeze 'em 'til the pips squeak. We're moving our accounts anyway as it has spurred us to check and we can get better rates elsewhere.

Martin_Rocks

I too received a letter from Egg on Friday. I have a 5K debt with a 6K credit limit, make regular Direct Debit payments of the minimum required, never missed a DD payment and have not used the card in roughly 18 months as I want it paid off and have been with Egg for over 5 years.

I telephoned Egg on Friday to be told, and I quote, 'there is no need to worry, there is no problem with your account, your agreement has been cancelled because you haven't used your card for sometime'. Now if this was the case, why didn't they tell me that!!

As I don't use the card now I am not getting hung up on the fact that it has been cancelled, what has made me angry is the way Egg have treated their customers and also some of the comments their spokesmen and women have been making. One example - 'we can certainly understand the concerns....but they are people we decided we no longer wish to lend money to'.
Well Egg, this works both ways. There will be many current customers angered by this action and will be looking to transfer their debt elsewhere (me included). Also because of all of this publicity new customers will be thinking twice about joining Egg.

mystic_trev

Welcome to 2008!

I think we're going to see a lot more of this, and I know many lenders are doing 'risk profiling' With the credit crunch brings much less available credit and therefore a tighening of credit. Unfair? Yes - buts that the new Economic climate we now find ourselves in.

hamstersmile

Hurrah - I got the letter too. Well at least it means that I can't keep spending on it! I've had an egg card for about 5 years and have always paid on time, except for last month when my work changed to way that paid expenses but that got paid. There's £3,000 on it and although I was shocked I'm not really that surprised as I've not been a good customer to them as I was a bit of a balance transfer !!!!!!.

Initially I was worried that they were going to ask for the cash back there and then but as long as I keep paying there shouldn't be a problem.

One question though, and this might have already been asked but can they change the interest rate now? Technically I no longer have an account with them so where does that leave me if there are any interest rates hikes?

spicyone

My card has been cancelled. I have always paid the full balance and I have an excellent credit rating. I used the card for internet and all purchases over £100.
I know thay have got rid of me as they dont make any cash from me, but I wish they would just say that instead of suggesting I'm a risk.

Paul_Herring

GandalfTheTight wrote: »

So someone at the bank says how can we avoid more risk – cancel anyone who has a large credit facility.

Or, you know, don't accuse your customers of being higher credit risks because your business model has just (allegedly) recategorised them as such and withdraw your services.

Reduce the credit limits if that's what it'll take to reduce your business' risk. You'd get to keep (most of) your customers, still receive an income from those spending (VISA/MC fees,) and would run less risk of being accused of being lying bar stewards and just out to increase profitability.

lisyloo

I think we're going to see a lot more of this

I'm going to be interest to see how companies deal with business expenses e.g. hotels, food etc.
At the moment it's generally dealt with through credit cards but if not being able to get them becomes much more widespread then I anticipate a problem.

GandalfTheTight

Paul_Herring wrote: »

Reduce the credit limits.

I thought that too - I have had my limits reduced on a card from 10k to £500 and figured that was what they were doing.

But even with lowering the limit to £500 their ‘model’ could look at my other cards and come up with the fact that the £500 is in a ‘high risk quadrant’ if I decided to max them all out.

Not saying it is right it is just the way things are going – if you don’t fit the ‘model’ they won’t take ANY risks.

Cat72

I have had mine cancelled too- no letter yet found out online. I owe about £5000.00 , and alsways pay at least the mininmum payment ( sometimes more ) every month. This is the most I owe any card.The thing I cant believe is I have an egg loan which I have almost finished paying.I have never missed a payment on this.I have had my loan for 3 years ( no problems) and the egg card for 8.I went over my egg limit by a few pounds twice last year so presume this must be there problem.How on earth do they come to their descions ?
I take it this means we still pay them as usual and that I still have time to pay them ? or do I have to pay the account off ?

Paul_Herring

I take it this means we still pay them as usual and that I still have time to pay them ?

Yes.

or do I have to pay the account off ?

Only if you start breaching your side of the agreement, like missing minimum payments.