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?