Posted on 4 February 2008 by
Pressure has been mounting on credit card firm Egg to justify its decision to cancel cards for 161,000 of its account holders.
Some 7% of Egg's credit card customers received a letter last week saying that in 35 days' time they would no longer be able to spend money on their cards. The move comes after an "extensive review" by Citigroup, which acquired Egg in May 2007.
The decision has angered many customers who report that they have good credit ratings and have kept up with payments.
Since Friday, hundreds of forum members at MoneySavingExpert.com have posted about Egg's action, with many claiming that they are being penalised because Egg does not make enough money from them.
In a statement today, Egg said: "We are sorry some customers are upset after receiving notification we are ending their credit card arrangement, but they are people we do not feel it is appropriate to lend any money to."
"We can certainly understand the concerns, but even if people are up-to-date with repayments, they are people we decided we no longer wish to lend money to regardless of their status."