Griffiths wants Egg to apologise to customers

 

March 5, 2008

Labour MP and former consumer affairs minister, Nigel Griffiths, has stated that he wants an explanation from Egg officials as to why the credit cards of 161,000 customers were cancelled, and if the move cannot be justified he expects an apology for all of the customers affected as well as compensation for wasted credit checks. Mr Griffiths, who has been heading a campaign against the actions that were taken by the Internet financial giant, is due to meet with the Chief Executive of Egg, Ian Kerr, in order to discuss the issue.

When Egg announced that it was cancelling the credit cards of 161,000 customers officials stated that the reason was that the credit profiles of those customers had deteriorated since they opened their accounts. However, rumours are rife that the actual reason behind the cancellation was that Egg wasn’t making enough profit from those cardholders because they were good payers, and this was why the cards had been cancelled.

Mr Griffiths stated that Egg must now prove that they were justified in cancelling these credit cards, stating: “Egg has got a lot of explaining to do. If you want to get rid of customers who are not bad credit risks but who you just don’t make money out of, then you should make a charge for your card.”

He added: “Egg’s job now is to prove they have an honest intention in this. They made a mistake, we need an apology and compensation for wasted credit agency checks.”

There have been many complaints from customers that have had their accounts cancelled, and Mr Griffiths spoke of one of these complaints: “One letter I received was from someone in the City who said last year he made £1m, he has £100,000 worth of shares in Citibank group that owns Egg, and he’s absolutely outraged that he should be told he is any sort of credit risk.”

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