Kerr resigns from Egg
March 22, 2008
Following heated controversy over the withdrawal of 161,000 credit cards from customers, the boss of Internet financial giant Egg, Ian Kerr, has resigned. Officials from Egg claim that the resignation of the boss is not related to the recent controversy. Kerr recently met with Labour MP Nigel Griffiths in order to discuss why the cards were withdrawn. Griffiths had been hoping to get a solution and an apology as a result of the meeting, but after the meeting Kerr and other Egg officials announced that there had been no change of heart.
The credit card facilities of 161,000 credit card customers were withdrawn last week, and customers were informed that this would happen over a month ago. Officials from Egg had claimed that the customers affected were an unacceptable risk for the company, but surveys revealed that many had not missed payments and had good credit. There were concerns that the real reason behind the move was that many of the customers were good payers and did not therefore generate enough profit for the lender in terms of charges and higher interest rates.
Nigel Griffiths has stated that he welcomes the resignation of the Egg boss, stating: ‘Egg presided over a PR disaster, withdrawing cards from thousands of perfectly respectable customers and failing to give full and honest reasons. I warned the company that their letter to customers was a serious mistake and urged them to make public a full explanation. Sadly my advice was ignored.’
A Citigroup official, which is the company that now owns Egg, said that he was saddened by the resignation of Mr Kerr, adding: ‘Ian has played a critical role in helping us to integrate the Egg business into Citi and he has also developed our strategy for a single unified business in the UK.’
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