MP states banks withdrawing credit cards over profits

In a recent announcement official from the Internet financial giant Egg stated that the credit card facilities of 161,000 customers were to be withdrawn, adding that the reason behind the move was that the credit profiles of the affected customers had deteriorated since they originally opened their credit card accounts.

The decision of the bank caused outrage amongst many customers, who stated that their credit was in perfect order and that they had never missed a payment.

In a recent poll it was found that nearly half of those who had their credit card facilities withdrawn had never missed a payment, fuelling concerns that Egg withdrew the card facilities for other reasons.

One MP is now concerned that the reason why banks are closing the credit card accounts of some consumers is because they are not making enough profit from good payers in terms of charges and interest.

John McFall, the chairman of the Treasury Select Committee, said that banks seem to be penalising good payers due to lack of profits made from them, and handing out cards to those who will pay a higher level of interest.

He said:

“Are we witnessing a situation where credit card companies are taking cards away from perfectly safe customers who pay their bill in full every month on the same date for years - and giving it to customers who are riskier? And if they are doing so, then their methods have to be called into question.”