Egg changes risk ratings for reliable customers
Banking giant Egg has shocked many of its loyal credit card customers by announcing that their risk ratings have changed for many customers, and therefore the interest rate on those customers' credit cards will rise. The decision by Egg will affect thousands of Egg credit card customers, and many are outraged that they will have to pay a higher rate of interest despite making the required repayments on their credit cards.
Egg officials have stated that in order to reach the decision with regards to raised interest rates each customer's account has been reviewed individually and a decision has been made with regards to risk factors. However, many customers that have been loyal credit card customers and have paid their credit card balance responsibly are horrified that their interest rates are going to be rising for no apparent reason.
According to one customer that holds an Egg credit card account: 'I have two cards with Egg and a loan. I always pay on time and make more than the minimum payment, I have never exceeded my credit limit, I have never received a default charge and I work in a job that requires my finances are in order. So why does Egg deem me to be a higher risk than before? I also received an email offering me a loan a couple of days later, so why are they saying that I'm not risky enough to have a loan, but I am for my credit card? It just doesn't make sense.'
Some customers think that this is just another way for Egg to try and recoup some of the losses that came about as a result of the FSA clampdown on credit card penalties last year. One customer said that when she called to complain about the raised interest rates she was offered a loan to repay the credit card balance.
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