EGG Credit Card

[Alice3537]

I've seen this story intermiitently during the day.

First off, they intimated that poor payers were being targeted (at least that was the way it was being reported).

Then, customers started to respond to the reports on BBC News et al - many of them pay on time, don't exceed their limit etc etc.

Seems to me a purge is being done - get rid of the bad risk along side the non-profitable.

I've also read posts on forums saying that the company is lying - when I read the quote from the company they talk about credit profile rather than credit risk. Therefore, a cover, in my opnion as the two 'could' be argued to be differebt aspects of running a company interested in financial credit.

Seems to me they are getting rid of those who take the mick alongside the responsible clients who use a credit card for THEIR benefit rather than that of the provider!

Anyone received a letter?

 

[maxine]

No, I havent an Egg card but have been following this aswell. Like you said the "Credit Profile" seems to be whether they are profitable customers or not. There was a similar instance last year I think with HSBC kicking out long term customers who were simply not profitable anymore and had nothing to do with their bad debt risk or late payments, just simply a purge

 

[Spiderden]

I've got an Egg card but I haven't received a letter. A couple of years ago I applied for a stock trading account (not with Egg) but was turned down, so I bought one of those credit reports and found I was being marked down for not having any credit. I'd always paid everything instantly, I'd never had any need for credit. So what I did was to change my habits by using credit cards more and only paying part of the balance each month. When I rechecked my rating, it had gone up and I was accepted for the account I was originally after. The only conclusion I could come to, is that they didn't like me because I wasn't very profitable for them. They don't seem to like giving credit to those who don't need it.

 

[maxine]

Yes, having worked with credit scores and profiles your score will go up if you can show that you can pay back credit regularly and on time.

As for profit, wouldnt it be nice for us all to "cleanse" our customer portfolio from time to time to only work for the profitable and good paying ones... there's a lesson for us there probably

 

[Fuzzy]

Well the news I heard were saying that they were targeting customers who either didn't use their credit card that often or paid up at the end of every month.

 

[Alice3537]

Well the news I heard were saying that they were targeting customers who either didn't use their credit card that often or paid up at the end of every month.

Yup - seems to be the case...BUT.....

A.M. news reports - Egg are writing to people who exceed credit limit, pay only the minimum each month, pay late etc

P.M. news reports (after some rather indignant people said 'hang on a minute, I've had a letter and am a really good payer' etc) - Egg have decided to bin account holders who don't make 'em much/any money.

I'm not even surprised by it! Hope it doesn't extend to other banks etc though - I 'd hate to see my bank close my account because I don't go overdrawn!

 

[10Yetis]

I think it is all just a PR effort. Egg wanted to be seen to be doing something during the Credit Crunch period.

Looks like it has back fired if the people they have written to are actually good customers. In that case it is just them trying to weed out the customers who don't make them much money (pay balance monthly, never go over limit) rather than the ones they originally said that they were writing to (always pay late, go over their limit).

 

[Fuzzy]

I think it is all just a PR effort. Egg wanted to be seen to be doing something during the Credit Crunch period.

Looks like it has back fired if the people they have written to are actually good customers. In that case it is just them trying to weed out the customers who don't make them much money (pay balance monthly, never go over limit) rather than the ones they originally said that they were writing to (always pay late, go over their limit).

Yeh, guess they got egg on their face now

 

[Gillie]

Banks/lenders cull on a regular basis, just not usually so loud and in the public eye.

Badly handled though ... Andy, they need a decent PR Company!!

 

[vvaannmmaann]

I have had three letters from them,all offering cards with huge credit limits.I'm glad I burnt them,if this is how they treat their customers.

 

[Astaroth]

Hmmm... have never paid a penny to Egg in terms of interest or fees but my letter yesterday was another large jump in available credit.