No apology for Egg customers
March 19, 2008
Earlier this week the former consumer affairs minister and Labour MP Nigel Griffiths announced that he had a meeting with the Chief Executive of financial giant Egg, Ian Kerr. The purpose of the meeting was to discuss the recent withdrawal of the credit cards of 161,000 consumers following a review of over two million credit card accounts.
Egg had previously stated that the reason for the move was because the customers affected were high risk, but there has been much speculation over whether the financial giant actually cancelled the cards of good payers who were not making enough profit for the lender.
Earlier this week Nigel Griffiths spoke of the up and coming meeting, 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 went on to state: “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.”
However, it appears that the meeting may have proven fruitless, with Egg stating that despite Griffiths’ concerns it will not back down.
Officials from Egg said: “The review was based upon a large number of variables and studied the level of risk inherent in groups of customers, rather then every individual. So while some customers in that group may be up to date with their payments and have a good record with credit reference agencies and so on, the probability of them becoming a higher-risk customer in the future is higher than we wish to accept.”
Mt Griffiths said: “I expressed my strong concerns about the letters sent to customers, particularly since I felt that more information could have been provided. I have received an assurance that Egg will ensure that the credit record of these card-holders will not be affected, as long as they keep up their agreed repayments.”
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