4 February 2008
Internet bank EGG has forwarded 160,000 notices to customers advising them that their accounts will cease to exist in 35 days after a "risk review" of their credit rating has determined they aren't credit worthy for an EGG credit card.
EGG had claimed that it had taken the drastic action to minimise losses incurred by high-risk customers.
A spokesman for EGG, who was bought out by U.S banking giant Citigroup last year said, "We are not using this as an excuse to get rid of unprofitable customers."
The Office of Fair Trading is set to begin an investigation after many claims from disgruntled customers began to surface.
Seven percent of Egg's two million credit card holders will be affected.
An EGG credit card holder told the BBC that she and her husband have always paid off their balance in full each month yet have been told their business is not welcome.
The couple is retired with no mortgage, no debt, a joint income of approximately 35,000 pounds.
And EGG has the audacity to call this a "risk review" of credit card holders.
Credit Rating