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

Metalface Mark

Metalface Mark

Metalface Mark

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Egg Card - Money grabbers?

I have an egg card, ive had it nearly 10 month, i transferred money from other cards when i first got it, but paid it off after a couple. I overpaid the card by accident thanks to the direct debit coming off when i paid it, and didnt realise that i had £55 of my own money to spend on it :p

Yesterday i logged in, to find that they were cancelling my account within 30 days, now even though i dont use it, i have it for emergencies, and its pretty annoying that they would do this.

Now given that my circumstances havent changed in 10 months, i at one point had 4 grand on the card that was paid in full, and i havent used the card for 6 months, what grounds can they have for cancelling a card? Am i punished because i dont spend money with them?

Curiously the reason i found out i was being cancelled, i was seeing if there were any offers on as i was about to buy a new tv through the card, which i wont be now. Has anyone else had any egg related similar shenanigans?
 
I can see how it's a pain, but its perfectly legal. If they behave like that, I'd suggest you don't want to give them your business and can find a credit card (if you actually need one) elsewhere.
 
I'm surprised they haven't done that to me given I've not used their card for 12 months, but since I BT'd a whole load onto their card the other day to take advantage of a low rate, I guess that's why.

Once that's paid off, I'll be closing the account. Generally not that impressed with Egg now.

Best part of their service - Egg Money Manager. If I can find someone else that offers that, I'm gone.
 
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They're a bit of a joke it seems. Getting rid of customers who they don't make any money from and deeming them to be "risky".

I pay my balance off in full every month so I'm expecting to be ditched.

Which is fine given that my Barclaycard One Pulse is the best card ever and makes the Egg card entirely superfluous.
 
Citi Bank did the same to their customers a while ago, if you'd not used your citi bank card for 12 months or something along those lines they wrote to you and just basically told you 'if you are not to use your card we will assume you no longer need our services and cancel your card', included me as I paid my citi bank card off in full each month - when I did use it from time to time..

I moved over to Barclay platinum card, lower purchase rate - not that this was important to me, as i use my cc for online transactions then pay off in full each month, but still a better card for me.

I've also got an egg card, and I fully expect a letter from them now, and guess what? Citi Bank own egg now, so erm little surprise. I'm not in the least bit bothered; my advice is to just get another cc from another provider.

Plenty of cc providers out there looking for business, although the recent credit crunch could be playing a role in the downsizing of customer numbers…. A cardholder who doesn’t use their card, or who pays off in full each month is an expensive customer to the provider, those who only pay the min each month are more attractive.

I find it amazing – the worst off in debt you are, the more likely they’ll increase your cc limits and offer you more deals… Greedy buggers, but that’s the credit market for you. Only out to make money, not friends with you..
 
One thing people here seem to be forgetting - even if you use your card and pay it off every month, I believe there's still processing fees charged to the retailers. I don't know if the credit card companies get a slice of that, but I suspect they probably do.

So, it's just the customers who don't use their cards at all that cost money.

Anyway, the cynic in me has spotted something interesting. Egg still pays a little cashback on some cards, and that gets paid in March. I wonder if they'll be paying out accrued cashback to those customers whose accounts they're closing. :rolleyes:
 
Haha, money grabbers? Our whole society was established because of it, don't be so surprised.

As far as I'm concerned though (and yes I have a CC with them) -- screw 'em. Banks and companies do not care about us, to them you're just another number.
 
iv-tecman said:
Citi Bank did the same to their customers a while ago, if you'd not used your citi bank card for 12 months or something along those lines they wrote to you and just basically told you 'if you are not to use your card we will assume you no longer need our services and cancel your card', included me as I paid my citi bank card off in full each month - when I did use it from time to time..
Click to expand...


Citi Bank owns Egg, so might also explain the similarities.
 
AJUK said:
They have a really stupid name so no other reason is necessary not to use them.
Click to expand...

The other reason is that they have the most stupidly weak login to their internet banking that can't even circumvent a key logger. The main reason why I don't use my egg account.
 
True that - but I can say the same for numerous other internet banking sites too (in fact the only one I use that has some protection against that is Lloyds).

One reason why I only log in to internet banking sites on hardware I trust (certainly wouldn't at a random internet cafe).
 
Berserker said:
One thing people here seem to be forgetting - even if you use your card and pay it off every month, I believe there's still processing fees charged to the retailers. I don't know if the credit card companies get a slice of that, but I suspect they probably do.

So, it's just the customers who don't use their cards at all that cost money.

Anyway, the cynic in me has spotted something interesting. Egg still pays a little cashback on some cards, and that gets paid in March. I wonder if they'll be paying out accrued cashback to those customers whose accounts they're closing. :rolleyes:
Click to expand...

That's a valid point, so yes regular users of their cc but then they pay the monthly statement in full each month are still making the provider some money. However, egg has a paperless billing system so I honestly cannot understand the reasons for this - its not like its costing them to send you a paper bill, I dunno what admin costs apply to each account but they must offset this in transaction charges to the retailer...?? If you use the card, and they are not sending out paper bills, and you pay off each month, then you surely must be making them some profit..??

Guess if you haven't got thousands of outstanding debt, they don't want you. Such a sorry state of affairs really.
 
http://news.bbc.co.uk/1/hi/business/7222336.stm

Anyone here being dropped by Egg, they say that they are dropping 'risky' costumers but all the people I've heard of so far that have been dropped have been excellent costumers :confused:, I myself have went over my limit on my Egg card a numbers of times and I haven't received any letter telling me my acc in being terminated, I think this move by Egg just proves that Banks/Creditors prefer customers that run their acc's poorly, I know we have members on here that stick up for banks/crediters etc saying it's stupid thinking that they prefer these types of custmers but this move by act seems to prove otherwise, check out some of the comments below from the story,





"I'm an egg customer also and after reading this report thought that I would be one of the ones affected. We regularly max out our egg card through balance transfers. "Risky customer" you may think, but not so it seems. I have yet to receive a letter so this seems to bear out what everyone is saying about maximising profits
Dave, London UK"


"I too have just received one of these letters. I have had an Egg card for almost 8 years and have never missed a payment (like others here I usually pay off the balance if I have one) and have never gone over my limit and my credit rating is excellent. It seems to me that Egg are picking on those who are in control of their finances and therefore not paying them lots of interest. If they deem fit to remove my Egg card, I shall be removing my Egg Savings (which has a far larger balance than my Egg card!). I think this is disgraceful behaviour on their part.
Mary, Edinburgh"

"Egg MAY be cancelling high-risk customers, but they are also apparently ditching those, like me, who pay no interest because we are GOOD creditors! Its disgusting that they are making out its just the bad ones who are being dropped. Fair enough if that's what they want to do, but don't send a really upsetting letter that makes it sound like we have a bad credit history all of a sudden. Good riddance to them, I say, if that's how they treat people.
Trevor Smith, Nottingham"


"I too had the "Your Egg Card has been cancelled" letter....very rude to put that before the Dear Sir or Madam! I too checked my credit rating as I was alarmed with the High Risk label I was being given....NO problem, excellent credit rating! I agree with other comments, it seems I was not making them enough money as I paid my balance off. There was also no way of appealing. I asked when I rang and was given a very curt "No".
Jane, London"


"I received the letter yesterday. What angered me most was the suggestion that the decision may have been the result of some detrimental entry to my credit report, causing me to fear that I may have been the victim of identity theft. This put me to the needless expense of obtaining a copy of my credit report, which of course is fine. The letter from Egg consisted of a tissue of lies which were merely a smoke-screen for the real reason behind the decision which I suspect is that I don't use the card enough. Why couldn't they just be honest and say that - but then I suppose the two words "honest" and "banking" don't sit well together these days do they!
Chris O'Shea, Woking, Surrey"


"I received this letter yesterday, I'm not sure why. I've been an Egg card holder for five years. I've always met the repayments and a year ago I paid off my whole £2000 balance in one go and have not used the card since. Perhaps Egg is equating 'high risk' with unprofitable?
Chris, London"


"After receiving my letter yesterday, I checked my credit rating. It's one of the highest possible. I told egg and they agreed that I was a "perfect customer" but they will not reverse their decision. There is no information on how to appeal in their letter.
Kirsty, London "

"I was notified yesterday that my account is to be closed. For Egg to say I'm a risky customer is a joke. I have a mortgage and a loan which I have never missed any payments on. The reason they have cancelled my account is that I pay the balance off each month. That's what they don't like. Luckily I already have other credit cards just waiting to be used so it hasn't impacted on me. It's just left me annoyed that they treat a loyal credit worthy customer of 5 years like this.
Mark, Sheffield"


"I had a letter from Egg yesterday about this. My Credit Record is excellent and I actually took out an egg loan 3 months ago!.

My Egg Credit card has not been used for over 6 months and had £0 owing. Some customers are being ditched because in my view they are not making Egg any money.
Dave Ware, Herts"


"As one of those affected by egg's decision. I would vehemently deny that I am a 'risky' costumer. I am homeowner who has never missed a payment on his debt. I can only guess that because my debt with Egg is low (under £700) that they deem my account as unprofitable.

For Egg to withdraw my account in this manner is an insult and to label me a 'Risky' customer in the media is a further affront.
Jonathan, Bristol, uk "





Getting rid of risky customers, pull the over one, this blatantly shows banks/creditors true colours.
 
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.
 
Haha, my friend works in the collections department for Egg, she's getting paid a load more to work in this busy period now.
 
You can't tell me that this sends out a good messages to people, run your acc properly and it gets terminated, it's funny, all the bank lovers on here that arc on saying that it's ridiculous that they prefer customers that run their acc's poorly, seems they don't have much to say on that matter now do they, I've known all along all these banks/creditors were immoral money grabbing ********, all their doing is taking advantage of people that are on the bread line, paying off minimum payments for the rest of their lives, they would see everyone in debt if it made them a buck, this move from Egg proves it.
 
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