Egg Card Withdrawal – Cardholders angry at Egg card’s decision: Finance Trading Times

Egg Card Withdrawal – Cardholders angry at Egg card’s decision

After the collapse of so many leading banks in the subprime mortgage crisis, followed by scams being unearthed at SocGen, following the closure of BNP Paribas Hedge Funds, following the Fed rate cut, following the selling of UK based mortgage lending banks like Northern Rock, It’s time now for the Credit card companies to show their skills.

UK based Egg Credit Card, which was bought over by the US based Citibank group in last May, has withdrawn their credit cards from the so-called “RISKIER” customers since immediate effect.. A total of 161,000+ Credit Cards issurd by Egg have been revoked by the issuing bank.
The move marks another example of how banks are revising their lending criteria amid the credit crunch. It was sometimes during the last week, when the FSA or the Financial Services Authority, the watchdog of UK financial systems had declared that UK banks face their toughest times since the 1990s, all owing to escalating consumer defaults.

The customers affected will not be able to use their Egg credit card once the notice period has ended, although they can continue to make minimum monthly repayments or pay up in full.

Interestingly, the Egg card is now owned by US based Citibank. Another interesting point about Citibank is that last week, it has suddenly closed down several of its ATM in prime locations in the financial capital of India, Mumbai. Already, Citibank is facing tough times owing to the global meltdown and problem with their lending business.

Who are these riskier customers of Egg card?

UK people have filled up complains on internet message boards about Egg being unjustified to them. They claim that even people who pay their bills on time, ultimately meaning “No income for the card company” have been sent notices to terminate the credit cards. It’s all happening in the markets across the globe and the banks are the ones who are being hit the hardest. Especially those in the lending and borrowing business. Already Northern Rock is being sold out, and no wonder why the credit card companies, who used to send agents after each individual to sell a “FREE CREDIT CARD” are now cancelling the credit cards of customers who are loyal to them and pay the bills on time. Keep watching, loads to happen – it’s a RANDOM market.
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2 Comments: Post your Comments

Vivek Nath said...(on 4 February 2008 at 18:25 )  

Hi Shobhit,

Thanks for the all good work and great articles. Would you have some time to explain REITS and the situation in India around the same. Also would it a be good idea for Retail investors to be part of the same.

Vivek Nath

Anonymous said...(on 4 February 2008 at 18:34 )  
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Wish you all happy and fruitful trading and investing activities with safety! = = = Post a Comment

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