OFT investigating Egg complaints

The Office of Fair Trading is investigating internet bank Egg, who recently withdrew the credit cards belonging to 161,000 customers.

Egg claimed that the customers, who represent 7% of its 2 million credit cardholders, had a ‘higher than acceptable risk profile’.

However, many of those affected have said they always pay their bill off in full every month and never go over their limit and have excellent credit ratings.

It was rumoured that Egg withdrew the credit cards because the customers did not make it enough money. However, Egg has stated the decision was taken after an extensive credit review following the acquisition by Citigroup last May.

Angela Knight, chief executive of the British Bankers Association, said that Egg’s action was ‘a sensible way of looking after a business‘.

Labour MP and former consumer affairs minister, Nigel Griffiths, has welcomed OFT’s involvement. He said he has received a flood of complaints about the issue.

The move is the first such action taken by a UK credit card issuer.

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