Egg acts over 'risky' customers, (RISKY, yeah right !)

Won't Egg 'closing' a credit card account possibly count as a bad mark on a persons credit history? If I close an account at my request that's all well and good, but the card company doing it themselves is surely a big black mark.

But in the end of course it's simply about Egg wanting to rake in the interest on large unpaid balances. If you pay everything off at the end of the month, or don't use the card at all, then where's their profit?

If I was an good Egg customer receiving one of these letters, I'd be insulted.
 
Paras said:
just had a look its 950, Because I NEVER remember to pay my cc bill and im not too keen on having a DD, I only ever used my egg card for small bits and bobs when I come to the uk so I just dumped some cash on there so I don’t have to worry about late charges
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If you're happy giving Egg money for no discernible reason, that's fine.

:)
 
Don't seem affected here, though that may be something to do with the £21.66 balance, never missed a payment and having a rather large credit limit that was maxed and paid off within a year I suppose.
 
mr_x_plosion said:
Egg have rapidly gone down the pan. When I signed up about 3-4 years ago they were excellent, offered great rates and superb customer service. Look at their rates now, not that good and beaten by plenty of others and now this.
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Spot on. Already closed two accounts. The third will go once I've paid it off (within 6 months). Only keeping the last one open for Egg Money Manager as it helps keep all my accounts manageable from one place.
 
It seems a lot of people are having their cards cancelled because they don't make enough money for egg.

So how long will it be till savers are told...your savings account is being closed cause it's costing us too much in interest to you cause your balance is too large???
 
CF93 said:
So how long will it be till savers are told...your savings account is being closed cause it's costing us too much in interest to you cause your balance is too large???
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Don't they already have a credit limit on those accounts? I thought they did, but maybe it's another internet savings account I'm thinking of.

Anyway, until I find someone else I trust to do internet banking consolidation they can look after the £4 in my savings account. :)
 
markyp23 said:
Absolutely never ever ever ever ever.
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True, but it's an interesting thought if they're really doing this for profit rathern than risk reasons. Someone with a high balance in a high interest account is expensive for them in interest costs.

Afterall, what gets put into savings accounts is lent out to others (retail and wholesale) and doesn't earn a lot - maybe 1% tops if their spread is good, less if they're struggling and that's before costs and expenses.
 
Berserker said:
Don't they already have a credit limit on those accounts? I thought they did, but maybe it's another internet savings account I'm thinking of.

Anyway, until I find someone else I trust to do internet banking consolidation they can look after the £4 in my savings account. :)
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Yes normally there is a limit on how much you can have in the account - typically this will depend on the account but on an "unrestricted" account it will be around £1m. But that doesn't stop a person opening more than one account though.

Mind you, would be nice to have that sort of money in the first place!!
 
Paras said:
Well they do pay 5% interest on a positive balance
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That's not with an Egg credit card, that's with the Egg Money Account (combo current/credit account). And even then it's only 4%, which Halifax will beat with a bog standard current account (6% ish).
 
CF93 said:
So how long will it be till savers are told...your savings account is being closed cause it's costing us too much in interest to you cause your balance is too large???
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You fail at banking....

What difference is it to the bank if they are paying 4% interest on 1000 accounts with £500 in or one account with £500,000? It all adds up to the same amount.

The savings help pay for the loans side of the business, the more cash they have in savings the less it costs them to give out loans, allow credit cards etc. Banks like having lots of saving customers, it means they don't need to borrow money to finance their debtors, like for example Northern Rock...
 
surely they are doing it because they (egg) are too exposed to credit and should the economy as a whole go pear shaped then the customers in credit would not pay up and egg would go rotten - maybe
 
Haircut said:
Even if it's not the most risky customers what's actually wrong with this?
Surely it's up to a business who they choose to do custom with and to maximise profits they should choose to do business with those people who will make them the most profit.
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Surely it's up the BBC what news stories they report on? Surely it's up to us what we get annoyed about and post on OCUK? Jeez - from the way some people post on this forum you'd think they actually enjoy getting crapped on by big corporations.

I have an Egg card, pay the balance off every month, yet I haven't had my card canceled as far as I know. I won't have one much longer though I can tell you - shoulda got rid of it as soon as it got sold to a US bank. US banks treat their customers like absolute crap :mad:
 
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