Broken th Egg

jaysay · 02-02-2008, 09:59

Heard this morning that 160,000 Egg Card holders have been given 31 days notice that their cards are being withdrawn. It apears that these people are in a high risk category, or is it that they are those who pay the full amout on their bill every month and Egg aren't making an money out of them. Well I suppose we have to accept that Egg was taken over by US based Citigroup last year and that this firm have reported a lose of £5 billion.

Neil · 02-02-2008, 10:17

They make money on every transaction so if you use the card and pay in full each month they make about 2% on your transactions, the 2% is charged to the retailer not you ( well sometimes they charge you).

If you pay less than the full amount they make money in interest.

jaysay · 02-02-2008, 11:02

Quote:

Originally Posted by Neil

They make money on every transaction so if you use the card and pay in full each month they make about 2% on your transactions, the 2% is charged to the retailer not you ( well sometimes they charge you).

If you pay less than the full amount they make money in interest.

I agree with tha Neil, but if you pay up every month they don't really like you, they'd much rather your card was maxed out and you were paying interest every month not just a one of 2% payment. I use may card a lot (not Egg) and I've never paid one penny in interest, mind you I am very careful what and when I use it, I have a set monthly amout whic I don't go over

MargaretR · 02-02-2008, 11:10

I had a GE moneycard which gave me 1%cashback - the card was withdrawn to all users after only one year after launch because it was not profitable for them.(I always pay off in full)
Many people are savvy now about how to manipulate cards thanks to
Money Saving Expert: Consumer Revenge - Credit Cards, Shopping, Bank Charges, Cheap Flights and more

Bonnyboy · 02-02-2008, 11:12

Quote:

Originally Posted by jaysay

I agree with tha Neil, but if you pay up every month they don't really like you, they'd much rather your card was maxed out and you were paying interest every month not just a one of 2% payment. I use may card a lot (not Egg) and I've never paid one penny in interest, mind you I am very careful what and when I use it, I have a set monthly amout whic I don't go over

Agree, a bloke was just on BBC saying that he is having his Egg Credit Card withdrawn due to being classed as “high risk” even though he has cleared his bill each month. The way Citigroup define “high risk” is probably the issue. If every customer paid up every month then of course they would be deemed “high risk” to the business, no interest to be made.

grannyclaret · 02-02-2008, 11:44

Thank goodness i dont have a credit card,,just a debit card,,, The bank dosent make one penny out of me...I suppose i will be targeted next.

harwood red · 02-02-2008, 11:49

well I have an egg card, so we will just have to wait and see if mine get withdrawn, most of the year I pay it off in full, but occasionally like at this time of year after xmas it takes me a couple of months to pay it off!

jaysay · 02-02-2008, 15:22

Quote:

Originally Posted by harwood red

well I have an egg card, so we will just have to wait and see if mine get withdrawn, most of the year I pay it off in full, but occasionally like at this time of year after xmas it takes me a couple of months to pay it off!

No doubt you'll be okay HR but if it had been in the summer and your balance straight thy may just have taken it away, mind you thats just the cynic in me

claytonender · 03-02-2008, 16:09

If Egg had wanted to promote adverse publicity for themselves they couldn't have done it better.

What seems to be annoying some of the people, who have got these letters, is being told that they are in a high credit risk category. If you always pay your account off every month, this could actually be classed as a libelous statement, especally if you have checked your credit rating with Experian or Equifax. Also if a customer who has got savings with Egg, has had a letter cancelling their credit card, they are extremely likely to withdraw their savings from Egg (I know I would if I was an Egg customer). Financial institutions don't always appear to think their decisions through, they do treat their customers with contempt.

The other worrying thing, is if Egg get away with this, how many other credit card companies will decide to ditch the customers, who never pay them any interest.

claytonender · 04-02-2008, 00:53

I found this copy of the letter EGG have sent to the customers they are ditching. I would be very angry to receive a letter like this, if I paid my account off in full to EGG every month, as it implies that the customer has a bad credit rating and history.

We are ending your Egg Card agreement - account number xxxxx

Dear Mx xxxx

We're writing to tell you that we've reviewed your Egg Card account, and under condition 20.2 of your Egg Card agreement, we are giving you formal notice that your agreement will end 35 days after the date of this letter (31st January 2008).

After the agreement ends, any cards issued on the account may not be used for new transactions of any kind. Please cut up all cards and dispose of them securely. Any regular payments such as monthly subscriptions will not be paid from the Egg Card account so you will need to cancel them with the service provider and arrange an alternative means of payment.

You must continue to pay at least the agreed monthly repayment each month until any debt balance on the account is repaid in full. The Egg Card agreement continues to apply until the balance is repaid in full.

You must make sure that any additional cardholder is aware of this notification.

Our lending policy requires us to keep our portfolio within an acceptable level of risk. The decision to end this agreement has been based on an assessment of the credit profiles of this account in accordance with our credit strategies. Factors that impact a credit profile may include payment history, account conduct and other credit information.

We will not record adverse information with credit reference agencies just because we are ending your agreement. However, we will share information about your payment record in accordance with our normal practices.

To find out more about your credit record you can get in touch with a credit referencing agency such as Experian at Credit Reports: Get your Credit Report from Experian UK - they'll be able to give you an up to date credit report.

If you have any additional questions about the termination of your Egg Card Agreement, please visit New Egg Home and log on to 'your accounts', if you still require further assistance call 0845 301 0891.

Yours sincerely

xxxx
Head of credit cards
Egg Banking plc

jaysay · 04-02-2008, 06:55

Quote:

Originally Posted by claytonender

I found this copy of the letter EGG have sent to the customers they are ditching. I would be very angry to receive a letter like this, if I paid my account off in full to EGG every month, as it implies that the customer has a bad credit rating and history.

We are ending your Egg Card agreement - account number xxxxx

Dear Mx xxxx

We're writing to tell you that we've reviewed your Egg Card account, and under condition 20.2 of your Egg Card agreement, we are giving you formal notice that your agreement will end 35 days after the date of this letter (31st January 2008).

After the agreement ends, any cards issued on the account may not be used for new transactions of any kind. Please cut up all cards and dispose of them securely. Any regular payments such as monthly subscriptions will not be paid from the Egg Card account so you will need to cancel them with the service provider and arrange an alternative means of payment.

You must continue to pay at least the agreed monthly repayment each month until any debt balance on the account is repaid in full. The Egg Card agreement continues to apply until the balance is repaid in full.

You must make sure that any additional cardholder is aware of this notification.

Our lending policy requires us to keep our portfolio within an acceptable level of risk. The decision to end this agreement has been based on an assessment of the credit profiles of this account in accordance with our credit strategies. Factors that impact a credit profile may include payment history, account conduct and other credit information.

We will not record adverse information with credit reference agencies just because we are ending your agreement. However, we will share information about your payment record in accordance with our normal practices.

To find out more about your credit record you can get in touch with a credit referencing agency such as Experian at Credit Reports: Get your Credit Report from Experian UK - they'll be able to give you an up to date credit report.

If you have any additional questions about the termination of your Egg Card Agreement, please visit New Egg Home and log on to 'your accounts', if you still require further assistance call 0845 301 0891.

Yours sincerely

xxxx
Head of credit cards
Egg Banking plc

Thats a terribly long winded way of saying sod off

WillowTheWhisp · 04-02-2008, 10:35

This bit:

Quote:

You must continue to pay at least the agreed monthly repayment each month until any debt balance on the account is repaid in full. The Egg Card agreement continues to apply until the balance is repaid in full.

doesn't sound like it refers to accounts which are paid off in full every month. It sounds like someone who may be getting out of their depth.

jaysay · 04-02-2008, 11:00

Quote:

Originally Posted by WillowTheWhisp

This bit:

doesn't sound like it refers to accounts which are paid off in full every month. It sounds like someone who may be getting out of their depth.

I'll just refer you to an earlier post in this thread by bonnyboy Willow, it maybe Egg are talking with forked tongue, well they were taken over by the Yanks last years

claytonender · 04-02-2008, 11:16

Quote:

Originally Posted by WillowTheWhisp

This bit:

doesn't sound like it refers to accounts which are paid off in full every month. It sounds like someone who may be getting out of their depth.

I agree with you, it is the tone of the letter, and EGG's public statements about bad debt that are really annoying people. I am sure they could have sent letters which were more polite to the people who conduct their accounts in a 'proper' manner. From reading the posts on various message boards - especially on moneysaving expert, there are a lot of very angry EGG customers, especially with the media's orginal acceptance of EGG's statements. There is even a website been set up Egg card cancel - a place to complain about Egg!

Before the webspread use of the internet, this action by EGG would have gone unnoticed, merely a few lines on the financial pages, but I think EGG have seriously underestimated the adverse reactions they have provoked. If you are an EGG customer, with savings and have not had your card cancelled it will make you consider the financial stability of the EGG and its parent company Citibank. I know if I was an EGG saver, I would be seriously considering withdrawing my money.

MargaretR · 04-02-2008, 11:38

I cancelled an Egg card over 5 years ago because their security was rubbish.
I had moved house and notified them on the website. They acknowledged recieving the advice, but nevertheless a few weeks later my card statement was posted to my previous address.

I had taken the precaution of paying for Royal Mail post diversion.
I was very glad that I did because my old home was tenanted by a well known local burglar.