Egg (CitiBank) credit card does a very poor job at cancelling 161K cards. They provide the reason that peoples credit history has deteriorated, which sounds legitimate but from the litany of quotes on this BBC page, it sounds more like they cancelled people because they were paying off their balance in full, thus making them unprofitable. However the opposite is true.
If the example I note below is anything to go by, this is a major screw up.
BBC NEWS | Business | Egg customer anger at credit move
Egg says 161,000 cards belonging to people whose credit profiles have deteriorated since they signed up will stop working in 35 days’ time.
……
I too have just received one of these letters. I have
had an Egg card for almost 8 years and have never missed a payment
(like others here I usually pay off the balance if I have one) and have
never gone over my limit and my credit rating is excellent. It seems to
me that Egg are picking on those who are in control of their finances
and therefore not paying them lots of interest. If they deem fit to
remove my Egg card, I shall be removing my Egg Savings (which has a far
larger balance than my Egg card!). I think this is disgraceful
behaviour on their part.
Mary, Edinburgh
Bankwatch 
My Letter to Egg after I had the same treatment as many.
Dear Egg,
I welcomed your move earlier in the week to reduce the number high risk customers from Egg, by withdrawing over 160,000 cards from high-risk people. Why? Well surely it means you care for the real ‘Low Risk’ Customers like me, who have excellent credit scores and mid-level salaries, who don’t want our fee’s rising to cover those of the high risk.
Shocked was I too recieve a letter from you this weekend branding me nothing short of a High Risk? Well, what a suprise! Is this high risk of default or as I suspect ‘High risk of you not making money from me’ as I seldom use my Egg card now.
I am a long standing customer of Egg and even turned to you for my loan last year, which I might add I’m very happy with. (Was)
My partner has a card and savings with you, (Sorry, Had Savings with you)
I can only assume that your business Partner Experian have made massive amounts of cash from your referrals on the letters, only for people to find that their Credit Scores are exemplary???
Its clear, I DON’T MAKE YOU ENOUGH CASH, SO YOU WANT RID OF ME!
If your had just been honest and said this in the first place, without fraudulently telling me I was a risk and getting me to pay money to find out I’ve done nothing wrong is very nearly criminal in intent.
I expect an answer to this, in fact even an apology. But the chances of that are nil from a poorly managed group of incompetents such as yourselves. I will take great delight in running you all down at every opportunity and my Partner withdrawing her savings.
Many Thanks for your disgusting letter
Jonathan Peedell
Barclaycard Customer
I totally agree with Jonathan’s comments. If Egg, as we were led to agree, were weedling out the real “high risk” customers and being a “genuine” caring company, this would be excellent. However, they are just getting rid of the people who don’t make them any money, increasing the profits of the Credit Rating Agencies but not being honest about the way they are going about it! They could have sent a standard letter saying that as we hadn’t used our cards recently, they were cancelling our Agreement under their terms & conditions, not making me feel like I’d done something really bad financially, even criminal and worrying me about my credit rating. Perhaps Citibank should look at the financial crisis in the USA at the present time and look again at their actions!
**** READ THIS *****
Egg are owned by Citi Bank, which trades as Future Mortgages & Citi Financial in the High Street. I used to work for Citi Financial when it was called “the Associates” and have dealt with Future Mortgages for years.
This kind of approach has been employed for years. Future Mortgages are renowned for declining perfectly good applicants and the reasons given should cause great concern. I recall one particular case where my clients were brandished “fraudsters” just an excuse for Future NOT to do the deal; yet the clients were perfectly clean & obtained their finance one month later from a reputable lender! That happened in Feb 2007.
Meanwhile, at Citi Financial & (aka The Associates) we were always taught to seek the very best clients & charge teh very highest rates) –
What surprises me most about the recent calls (by MP’s) for OFT investigation is that I personally reported these occurances years ago – the OFT were simply NOT INTERESTED!
I am a victim too but I can’t be bothered.
Sad? Yes! Angered? You bet!
I just went to the site above to compare for credit cards in UK and apply for one.
Since I am a football fan, I got a football credit card by MBNA. I am happy to report that I got my card recently.
It’s Egg lose and other credit card issuers gain.
I just bring my money and purchasing power elsewhere.
I CANT BELIEVE IT! First Direct have JUST done something similar!
Last year I bought goods on my VISA card with First Direct. Initially I disputed the goods because they were not as described. Two weeks later I found out the goods were stolen anyway!
I disputed the item.
Amazingly, the dispute has been thrown out by VISA?! They say I have to pay it – yet they approved a similar dispute made at the same time via a different retailer?
When I questionned this with First Direct & explained that I had to sue via a small claims court as these goods were stolen – they immediately, WITHOUT WARNING, reduced my credit limit from £10k to £2200. I am A1 paid. Always HAVE been. I have a great income & a perfect credit rating.
They refuse to give answers. Is this not a similar siutuation to EGG – this is outrageous! Not only are consumers NOT PROTECTED when using their VISA cards, but the card issuer will punish you if you dare to question decisions and try to enforce your rights. SO it’s OK for them to suie customers but not the other way around! How nice of HSBC owned First Direct. The local bank!
Incidently, HSBC was once Midland – the listening bank?