Credit cards are to be withdrawn from 161,000 Egg customers who it believes pose an unacceptably "high risk".
Credit cards are to be withdrawn from 161,000 Egg customers who it believes pose an unacceptably "high risk".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.
Risk profile
Risk profile
Letters will be followed up with e-mails to customers.
Letters will be followed up with e-mails to customers.
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".
Angela Knight, chief executive of the British Bankers Association, said that Egg's action was "a sensible way of looking after a business".
"Whilst it is lovely to spend, it is the paying back that is always the difficulty. It might seem a bit hard to say to people 'You do need to stop spending' but it does actually make real sense so to do."
The 161,000 customers whose cards are being withdrawn had had a deteriorating credit profile since they signed up, according to Egg spokeswoman Rachel Roe.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.
There are no plans for a future review Rachel RoeEgg spokeswoman
There are no plans for a future review Rachel RoeEgg spokeswoman
They claimed that by making repayments strictly every month, Egg was not making a profit from them in interest.
They claimed that by making repayments strictly every month, Egg was not making a profit from them in interest.
Gillian Cox, of Farnham, Surrey, said she was "absolutely furious" to learn that her credit card had been cancelled in what she described as an "unbelievable arbitrary action".
Gillian Cox, of Farnham, Surrey, said she was "absolutely furious" to learn that her credit card had been cancelled in what she described as an "unbelievable arbitrary action".
Mrs Cox said she and her husband are "retired, no mortgage, no debts" and "always paid the balance off in full each month".
Mrs Cox said she and her husband are "retired, no mortgage, no debts" and "always paid the balance off in full each month".
She added that she had contacted Experien who informed her that she was marked as having an "excellent" credit rating, "thus totally negating Egg's claim that this measure is about credit risk".
She added that she had contacted Experien who informed her that she was marked as having an "excellent" credit rating, "thus totally negating Egg's claim that this measure is about credit risk".
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.
Are you one of the Egg customers that has received this letter? What's your reaction to this story? Send us your comments by filling out the form below.
Are you one of the Egg customers that has received this letter? What's your reaction to this story? Send us your comments by filling out the form below.
I received this letter yesterday, I'm not sure why. I've been an Egg card holder for five years. I've always met the repayments and a year ago I paid off my whole £2000 balance in one go and have not used the card since. Perhaps Egg is equating 'high risk' with unprofitable?Chris, London
I received this letter yesterday, I'm not sure why. I've been an Egg card holder for five years. I've always met the repayments and a year ago I paid off my whole £2000 balance in one go and have not used the card since. Perhaps Egg is equating 'high risk' with unprofitable?Chris, London
After receiving my letter yesterday, I checked my credit rating. It's one of the highest possible. I told egg and they agreed that I was a "perfect customer" but they will not reverse their decision. There is no information on how to appeal in their letter.Kirsty, London
After receiving my letter yesterday, I checked my credit rating. It's one of the highest possible. I told egg and they agreed that I was a "perfect customer" but they will not reverse their decision. There is no information on how to appeal in their letter.Kirsty, London
I was notified yesterday that my account is to be closed. For Egg to say I'm a risky customer is a joke. I have a mortgage and a loan which I have never missed any payments on. The reason they have cancelled my account is that I pay the balance off each month. That's what they don't like. Luckily I already have other credit cards just waiting to be used so it hasn't impacted on me. It's just left me annoyed that they treat a loyal credit worthy customer of 5 years like this.Mark, Sheffield
I was notified yesterday that my account is to be closed. For Egg to say I'm a risky customer is a joke. I have a mortgage and a loan which I have never missed any payments on. The reason they have cancelled my account is that I pay the balance off each month. That's what they don't like. Luckily I already have other credit cards just waiting to be used so it hasn't impacted on me. It's just left me annoyed that they treat a loyal credit worthy customer of 5 years like this.Mark, Sheffield
I had a letter from Egg yesterday about this. My Credit Record is excellent and I actually took out an egg loan 3 months ago!.
I had a letter from Egg yesterday about this. My Credit Record is excellent and I actually took out an egg loan 3 months ago!.
My Egg Credit card has not been used for over 6 months and had £0 owing. Some customers are being ditched because in my view they are not making Egg any money.Dave Ware, Herts
My Egg Credit card has not been used for over 6 months and had £0 owing. Some customers are being ditched because in my view they are not making Egg any money.Dave Ware, Herts
As one of those affected by egg's decision. I would vehemently deny that I am a 'risky' costumer. I am homeowner who has never missed a payment on his debt. I can only guess that because my debt with Egg is low (under £700) that they deem my account as unprofitable.
As one of those affected by egg's decision. I would vehemently deny that I am a 'risky' costumer. I am homeowner who has never missed a payment on his debt. I can only guess that because my debt with Egg is low (under £700) that they deem my account as unprofitable.
For Egg to withdraw my account in this manner is an insult and to label me a 'Risky' customer in the media is a further affront.Jonathan, Bristol, uk
For Egg to withdraw my account in this manner is an insult and to label me a 'Risky' customer in the media is a further affront.Jonathan, Bristol, uk
