Loans -
Egg told to apologise - 28/02/2008
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Credit card company Egg, owned by Citibank, is being asked to apologise to thousands of customers after closing their accounts without warning.
The bank wrote to 161,000 card holders earlier this month saying they were poor credit risks. This comes during the credit crunch, caused by sub-prime mortgages, which has left many people relying on secured loans.
Labour MP Nigel Griffiths, said: "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 said.
Egg’s decion caused outrage as most of the cancelled accounts were paid off regularly and on time. This has led to accusations that Egg has dropped customers that don’t pay them large amounts of interest.
"One letter I received was from someone in the City who said last year he made £1m, he has £100,000 worth of shares in Citibank group that owns Egg, and he's absolutely outraged that he should be told he is any sort of credit risk," said Mr Griffiths.
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