Just a couple of weeks ago, Egg, the bank which were taken over by Citibank last year, announced that they were cancelling a number of credit cards that belonged to existing customers, with no valid reason.
Of the 161,00 customers who were affected, many had a good record of repaying their bills each month whilst some others barely used their cards at all, and chose to keep them for the occasional emergency.
This lead Egg to be criticised for getting rid of customers that weren’t making them any money.
Egg obviously have stated this is incorrect and said the selection process was based on the risk of the customer becoming a higher risk for the bank in the future. A risk they were not happy to accept considering the unstable financial market at the moment.
Whilst many consumers are very unhappy, Egg announced that they are standing by their decision and will not back down.
The Office of Fair Trading (OFT), which regulates consumer protection in the UK, has still to make a decision whether it will investigate the decision.
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