Credit Card And Finance News

Egg last week announced that they were writing to 161,000 customers to inform them that their credit cards are to be cancelled, and that this move was in response to a one-off review carried out by the owners of Egg, Citigroup.

Although only customers who were considered to have "a higher than acceptable risk profile" were targeted, there have been cases of people with excellent credit history getting cancellation letters for their Egg credit card. If you are one of these people who have received a credit card cancellation letter, what are the implications?

Firstly, it is important to stress that if you have an                Apply for an Egg Credit Card         outstanding balance on your credit card, Egg are                                                                      not demanding you repay the whole amount straight away. You will still be able to make minimum payments and at this time we are not aware of any requirement to pay the whole balance off by a certain date. What the cancellation does mean though is that after your 35 day notice period, your credit card will not work anymore. These consumers won’t be able to use their Egg Credit Card for purchases or for cash advances.

Many organisations have praised the move, saying it shows an example of “responsible lending” and confirming that this is in the best interests of not just the business, but also certain credit card consumers.

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