British Internet bank Egg says it is ending 160,000 customers' credit card agreements

AP ^ | 02 Feb 2008 | AP

[BGHater]

British Internet bank Egg said Saturday it is terminating about 160,000 customers' credit card agreements, saying their credit profiles had deteriorated.

A British lawmaker called the move unfair, and said Egg's decision should be investigated.

Egg Banking PLC was bought by Citigroup Inc. last year, and the company said the move was the result of a "one-off, extensive risk review of our book" after the acquisition. The figure represents about 7 percent of Egg's credit card customers.

"Egg has given a number of its credit-card customers 35 days' notice that it is ending their card agreements," the bank said in a statement. Egg said its customers would still be able to repay their balances, either monthly or in full.

Egg, one of the largest Internet-only banks in the world, was bought from British insurer Prudential PLC by Citigroup for more than US$1 billion (€670 million) in May 2007. It now forms part of Citigroup's U.K. consumer unit.

[BGHater]

'In an interview with British Broadcasting Corp. TV, Griffiths said there has been " a flood of complaints" from Egg card holders who had paid for independent credit rating checks that found they were good customers.

"Of course, no one should be forced to give credit to anyone. In fact, I've accused this industry of too easily giving credit in the past and not making proper checks," the Scottish legislator said.

"But in this case they seem to be almost indiscriminately taking people off their books and there is a strong suspicion that these are people who — because they don't actually get into debt and start paying high monthly interest charges — ... may not be the most highly profitable customers and they're being cleared off the books," Griffiths said.'

Lol. The deadbeats are the ones paying their statements on time. They aren't making money off them.

[rabscuttle385]

The deadbeats are the ones paying their statements on time. They aren't making money off them.

Bingo.

[Virginia Ridgerunner]

"But in this case they seem to be almost indiscriminately taking people off their books and there is a strong suspicion that these are people who — because they don't actually get into debt and start paying high monthly interest charges — ... may not be the most highly profitable customers and they're being cleared off the books," Griffiths said.

Screwing their most responsible customers like this IS pretty stupid...

[kitkat]

That’s just what I thought when I started to read the article: Don’t charge what you can’t afford, and therefor pay on time with no extra interest charges, and THEY DROP YOU.