Compare Credit Cards  |  Credit Card Providers  |  Credit Card Types

 

Credit Cards - MP vows to grill Egg - 27/02/2008

  
 
  Credit card provider Egg - which recently cancelled the accounts of 161,000 customers - is to be grilled by a Labour MP.

The customers were told by the firm that they represented a 'credit risk' - and had been flagged up by an internal report.

However, it has since emerged that many of those affected paid their card balances off each month - leading to suggestions that Egg cancelled the cards in order to maximise profits.

This is because card firms make much of their money through charging interest on outstanding balances.

Commenting, Nigel Griffiths MP said that hewould be meeting with the card provider's chief executive, Ian Kerr and that the firm had "a lot of explaining to do".

Mr Griffiths also suggested an alternative way of card firms gaining funds, so that similar cut-offs would not occur in future, the BBC reports.

"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 suggested.

 
     
 
 
Related News
  27/07/2008 - Credit rates hit the 35% mark. . One of the largest credit companies, MBNA, has shocked its customers by announcing a...
16/06/2008 - Credit card limits frozen for wealthy customers. . With a salary of more than 100,000, an impeccable credit file and a record...
10/06/2008 - Fraudsters fail in their attempt to scam money from married couple. . A married couple who were targeted by fraudsters have told of their horror at...
 
Related Guides
  Finding the best credit card. . When it comes to choosing a credit card there seems to be a bewildering...
Quick Credit Card Guide. Were living in a cashless society, and instead of our purses and wallets being unburdened...
 
Related Articles
  08/07/2008 - Sensible way of dodging credit card charges. . The much publicised credit crunch has led to both consumers and credit companies tightening...
29/06/2008 - How to use your credit card abroad. . With the summer coming up, relaxing getaways on sun-kissed beaches and seeing the sights...
29/06/2008 - British Holidaymakers' New Attitude to Credit Card. . The credit crunch has obviously taught people in the UK a hard lesson, which...

Best Buy Credit Card
0% Balance Transfer Buy Now
Cash Back Cards Buy Now
Gold/Silver Cards Buy Now
Platinum Cards Buy Now




Only Finance Ltd is authorised and regulated by the Financial Services Authority, FSA registration number: 466941. Our registered offices are 1 Kings Avenue, Winchmore Hill, London N21 3NA, company number: 05640662. Telephone 0207 377 1805.

About Us  |  Site Map  |  Disclaimer  |  Terms & Conditions  |  Privacy Policy  |  Contact Us