Egg won’t be changing policies

Following a meeting between Labour MP Nigel Griffiths and chief executive of Egg Ian Kerr, the Internet financial giant has stated that it will not be changing any policies.

The meeting was arranged amidst concerns over why Egg withdrew the credit card accounts of 161,000 customers, which many people thought was due to lack of profits because the customer were good payers.

Before the meeting the former consumers affairs minister Griffiths stated: “Egg has got a lot of explaining to do. If you want to get rid of customers who are not bad credit risks but who you just don’t make money out of, then you should make a charge for your card.”

He added: “Egg’s job now is to prove they have an honest intention in this. They made a mistake, we need an apology and compensation for wasted credit agency checks.”

However, following the meeting, Egg said: “The review was based upon a large number of variables and studied the level of risk inherent in groups of customers, rather then every individual.So while some customers in that group may be up to date with their payments and have a good record with credit reference agencies and so on, the probability of them becoming a higher-risk customer in the future is higher than we wish to accept.”

Mr Griffiths said: “I expressed my strong concerns about the letters sent to customers, particularly since I felt that more information could have been provided. I have received an assurance that Egg will ensure that the credit record of these card-holders will not be affected, as long as they keep up their agreed repayments.”