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Boss of internet bank Egg resigns | Boss of internet bank Egg resigns |
(about 19 hours later) | |
The boss of internet bank Egg, Ian Kerr, has resigned. | The boss of internet bank Egg, Ian Kerr, has resigned. |
The announcement comes after a row over the bank's decision to withdraw 161,000 credit cards, a move that angered many customers and consumer groups. | The announcement comes after a row over the bank's decision to withdraw 161,000 credit cards, a move that angered many customers and consumer groups. |
The bank, owned by Citigroup, said the customers were a poor credit risk but many of those affected insisted they paid their bills in full every month. | The bank, owned by Citigroup, said the customers were a poor credit risk but many of those affected insisted they paid their bills in full every month. |
Egg said Mr Kerr's resignation was of his own accord and was not related to the credit card cancellations. | |
Mr Kerr, who had run Egg since November 2006, will be replaced by Bert Pijls, Citigroup's country manager for the Czech Republic. | Mr Kerr, who had run Egg since November 2006, will be replaced by Bert Pijls, Citigroup's country manager for the Czech Republic. |
The credit card cancellations affected 7% of Egg customers. | The credit card cancellations affected 7% of Egg customers. |
Many of the customers affected said they had good credit records and claimed that Egg cancelled their cards because they did not make enough money for the bank. | Many of the customers affected said they had good credit records and claimed that Egg cancelled their cards because they did not make enough money for the bank. |
Egg denied this and said the customers might become a high risk in the future. | Egg denied this and said the customers might become a high risk in the future. |
Labour MP Nigel Griffiths, a former consumer affairs minister critical of Egg's actions, welcomed Mr Kerr's resignation. | Labour MP Nigel Griffiths, a former consumer affairs minister critical of Egg's actions, welcomed Mr Kerr's resignation. |
"Egg presided over a PR disaster, withdrawing cards from thousands of perfectly respectable customers and failing to give full and honest reasons," he said. | "Egg presided over a PR disaster, withdrawing cards from thousands of perfectly respectable customers and failing to give full and honest reasons," he said. |
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