No move to investigate Egg credit card cancellation : Credit Card Guide

No move to investigate Egg credit card cancellation

According to a recent report there has been no official complaint lodged that would result in an investigation being launched into the recent decision of lending giant Egg to cancel the credit cards of 160,000 of its customers.

The lending giant recently announced that the credit card accounts of around 160,000 customers would become defunct over the coming weeks, and those affected would no longer be able to use their credit cards other than to make repayments on the balance.

Customers were told that their cards would stop working in 35 days following the announcement, and Egg officials stated that the customers on the hit list were those whose credit ratings had fallen since they opened their Egg credit card accounts. MPs have now called for an investigation to be launched into the shock move by Egg, but the Office of Fair Trading has stated that an official complaint will need to be filed before an investigation can be considered.

Following the announcement about the credit card withdrawals Egg issued a statement: "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. We can certainly understand the concerns, but even if people are up-to-date with repayments, they are people we decided we no longer wish to lend money to regardless of their status."

One customer expressed his shock at being told his account was being cancelled. He said: "As a 32-year-old earning £35,000 a year with an excellent credit rating, and an Egg customer for five years who has never missed a payment - repaying over £7,000, I was shocked when I received a letter saying my account was being cancelled."

Tom Smith
16th February 2008

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