Survey shows many Egg credit card customers were not high risk

After announcing that they were withdrawing the credit card facilities of 161,000 customers recently, Egg official said that the reason for the action was because of the deteriorating credit profiles of affected customers.

According to Egg those affected by the decision were failing to make the minimum repayment each month, and were therefore classed as high risk and were unsuitable to lend money to.

However, a recent survey has shown that nearly half of those affected by Egg’s credit card withdrawal had never missed a payment and had good credit.

The survey was conducted by This is Money, and consumers were asked whether they had ever missed a repayment on their credit card. Although 57% said that they had missed repayments, the remaining 43% said that they had never missed a payment. Many of the customers on the Egg hit list have been puzzled as to why they are having their credit withdrawn.

The Treasury Select Committee, and the Labour consumer affairs minister Nigel Griffiths, have filed complaints over the actions of Egg, and these are now being considered by the Office of Fair Trading with a view to launching an investigation.

Mr Griffiths recently stated: ‘I am very pleased about that. It shows just how seriously they are taking it. I cannot tell you the number of complaints I have had - they just keep flooding in.’

After making the announcement one Egg official said: “We are sorry some customers are upset after receiving notification we are ending their credit card arrangement, but they are people we do not feel it is appropriate to lend any money to.” He went on to state: “The decision was taken after an extensive one-off review of our credit card book following acquisition by Citigroup.”

Comments

• Search

• Recently Written

  • Credit card defaults result in losses for American Express
  • Consumers can enjoy benefits of Abbey credit card
  • Pre-paid debit card for under 18s welcomed
  • Credit card difficulties could impact on mortgage repayments
  • Credit card spending rises as households try and keep on top of payments
  • Credit card interest rates have been rising
  • More than half of credit card customers avoid interest
  • Tories launch attack on credit card providers
  • Increased warranties for Nationwide credit card customers
  • Many people lie to get their hands on a credit card

• Categories

  • Latest News

• Archives

  • May 2008
  • April 2008
  • March 2008
  • February 2008