Complaints about Egg Credit Card Fiasco

Egg is a credit card company who tried to create an image of being a different and consumer friendly credit card. However, there recent actions to tell over 140,000 consumers that they can no longer keep their credit cards because they are a ‘credit risk’ has met with widespread criticism.

Egg wrote a letter saying that people’s credit card would stop working within 35 days. Yet, many egg credit card users say that they have never missed a payment.

Labour MP and former consumer affairs minister Nigel Griffiths made a complaint to the Financial Services Authority FSA. They in turn have forwarded the complaint on to the OFT. They are now investigating the case.

Critics of Egg say that the main motivation for cancelling cards is that Egg want to get rid of unprofitable credit card users, users who never pay any interest on the debt. Egg dispute this; however, it is a strange decision given that if credit card users do have a bad credit history and miss payments or pay interest they are probably the most profitable consumers. The argument Egg make is that the subprime crisis makes it much more difficult to deal with debt labelled as ‘bad credit’ or ’subprime’

Egg has recently been bought by American bank Citigroup, I think they seriously need to have some common sense marketing advice. This decision will not help them in any way. But, it will understandably annoy egg credit card users and create bad publicity for the company.

I have had an Egg credit card for several years. I have never bought anything on it. I just use it for transferring credit card debt at 0% for 6 months. They didn’t write to me to say that they were going to revoke it.

What Should Egg Credit Card Users do?

If you have you egg credit card cancelled I would be interested to hear your views and in particular whether you have had a history of missing payments. It will be interesting to see what the OFT decide. There is a possibility of compensation for unfair treatment, we will have to await the verdict.

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