Egg’s actions could benefit some consumers
Consumers with damaged credit who have had their credit card accounts closed by Egg may actually benefit in terms of seeing their credit improve according to officials from the credit reference agencies.
Officials also added that nobody affected by the card withdrawal situation will have a black mark on their credit file because of the action, as the account will simply be considered settled.
An industry official from the credit referencing agency Equifax stated: ‘We don’t flag up whether an account has been withdrawn; we just highlight whether an account is open or settled. So in some respects, the Egg withdrawal of cards could work in a person’s favour.’
He also said: ‘We log that you have paid off a credit card balance, which will look good in the eyes of lenders. Also, one piece of advice I have always given people is - if you are rate tarting you should never leave a card open once you have moved the balance as the lender will only see the number of cards in your name. If you have too many cards you may be seen as too much of a risk. The Egg closure may help you also by reducing your card number and therefore increasing your creditworthiness.’
Egg announced recently that the credit cards of 161,000 customers were to be withdrawn, stating that this was because their credit profiles had fallen since they opened their accounts. However, many of the customers are disputing this, stating that their credit is perfect.
A recent poll by This is Money showed that around 43% of those affected had never missed a repayment, which contradicts what Egg officials stated.
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