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"Egg closes credit card accounts of customers"

By admin | February 17th, 2008 | Credit Cards, General

The online lender Egg has recently caused outrage amongst many of its customers, after withdrawing the credit card facilities of over 160,000 cardholders. The lending giant made the shock announcement recently, yet it is still continuing to advertise its credit card. Many of the customers that have been affected by the card withdrawal have expressed shock and bewilderment with regards to why their cards have been withdrawn.

Officials from the bank have apologised for the move, but added that the people that have been affected are those that the lender no longer felt it appropriate to lend to. One official said that the cardholders who were having their credit card facilities withdrawn were those whose credit ratings had slipped since they first opened their credit card accounts with the bank.

Around 7% of the lenders’ card customers are thought to have been affected by the withdrawal of services, and cards are due to become ineffective 35 days from the date of the announcement. Customers will be able to repay any outstanding balance on the card by making at least the minimum requested repayment each month in the usual way, but will not be able to use the card any longer after the 35 day period.

One official from Egg 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 added: “The decision was taken after an extensive one-off review of our credit card book following acquisition by Citigroup.”

Tags: accounts, Credit Cards, egg

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