Credit cards are to be withdrawn from 161,000 Egg customers who it believes pose an unacceptably "high risk".
Credit cards are to be withdrawn from 161,000 Egg customers who it believes pose an unacceptably "high risk".
The internet bank is writing to 7% of its customers to give them 35 days' notice of the withdrawal.
The internet bank is writing to 7% of its customers to give them 35 days' notice of the withdrawal.
Cardholders will be able to continue making minimum monthly repayments on their balances but will not be able to spend any more after the deadline.
Cardholders will be able to continue making minimum monthly repayments on their balances but will not be able to spend any more after the deadline.
The move follows a "one-off" review after Egg was bought by US-based Citigroup for £575m last year.
The move follows a "one-off" review after Egg was bought by US-based Citigroup for £575m last year.
In a statement, the bank said it was not demanding immediate repayment of balances or making any changes to customers' terms and conditions or their interest rates.
In a statement, the bank said it was not demanding immediate repayment of balances or making any changes to customers' terms and conditions or their interest rates.
The 35-day notice period starts on receipt of the letter, which also provides details of how to appeal against the decision.
The 35-day notice period starts on receipt of the letter, which also provides details of how to appeal against the decision.
Letters will be followed up with e-mails to customers.
Letters will be followed up with e-mails to customers.
Review
Review
Egg was sold to US banking giant Citigroup in May 2007 by life insurer Prudential.
Egg was sold to US banking giant Citigroup in May 2007 by life insurer Prudential.
It prompted the review, which picked out customers considered to have "a higher than acceptable risk profile".
It prompted the review, which picked out customers considered to have "a higher than acceptable risk profile".
The 161,000 customers whose cards are being withdrawn had had a deteriorating credit profile since they signed up, according to Egg spokeswoman Rachel Roe.
The 161,000 customers whose cards are being withdrawn had had a deteriorating credit profile since they signed up, according to Egg spokeswoman Rachel Roe.
This could include those who have missed repayments or exceeded their credit limit.
This could include those who have missed repayments or exceeded their credit limit.
But the description has angered some customers who told the BBC that they had received a letter informing them of the withdrawal, despite having an excellent credit history.
But the description has angered some customers who told the BBC that they had received a letter informing them of the withdrawal, despite having an excellent credit history.
They claimed that making repayments strictly every month meant that Egg was not making a profit from them in interest.
They claimed that making repayments strictly every month meant that Egg was not making a profit from them in interest.
Egg's decision could be a signal of the tightening credit market, with consumers facing more difficulty in repaying debts and cutting spending.
Egg's decision could be a signal of the tightening credit market, with consumers facing more difficulty in repaying debts and cutting spending.
But Ms Roe said the appraisal was the result of an unusual set of circumstances owing to the change of ownership last year.
But Ms Roe said the appraisal was the result of an unusual set of circumstances owing to the change of ownership last year.
"There are no plans for a future review," she said.
"There are no plans for a future review," she said.
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