Egg withdraws cards from riskier customers

  sl2 14:54 02 Feb 2008
Locked
  Teaboy 16:42 02 Feb 2008

Seems a sensible thing to do. why take risks? Banks have lost lots of lolly by not doing this earlier.

  lisa02 17:06 02 Feb 2008

I imagine the customers affected won't be too pleased.

I thought "revolvers" are the ones credit card companies make the most money out of.

  lisa02 17:07 02 Feb 2008

So I can't see why they want to lose them.

  Fruit Bat /\0/\ 17:26 02 Feb 2008

To quote from their advert

"you know wher you are with an egg card"

Yes standing at a checkout in an embaressing situation as my card is not accepted.

:0)

  Forum Editor 17:34 02 Feb 2008

I predict a furious reaction from many of the affected customers, and a distinct lack of enthusiasm on the part of prospective card holders.

  SB23 17:54 02 Feb 2008

I agree with the FE.

Although I can understand the reasons, I honestly believe that there are better ways of dealing with customers whose profiles have deteriorated over time.

  gudgulf 17:58 02 Feb 2008

Judging by the comments appearing at the end of this article click here it's not just bad risk customers but those who pay off their card bill in full each month.

Quote: "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."

Glad I don't have an EGG card if that's how they treat their customers.......let's just hope that other card issuers don't follow suite.

  oresome 18:19 02 Feb 2008

I eggspect there'll be a scramble to get another card before the present one is whisked off them.

  Clapton is God 18:22 02 Feb 2008

The protests have started, although personally I can fully understand Egg's decision click here

  PILECAP 20:13 02 Feb 2008

Egg says that the 161,000 people having their cards stopped in 35 days time have credit profiles that have “deteriorated since they signed up.”

Anecdotal evidence suggests this is only half the reason. A bank spokesman has said those affected were people it no longer wanted to lend money to, “regardless of their current status." Apparently this includes customers who always pay on time and have excellent credit ratings, therefore not providing the bank with interest payments.

As this is the first such action by a UK credit card issuer, will other banks follow suite or would it be considered bad PR to do so?

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