Was it an unhappy Easter for Egg boss

Posted by Richard Catlin in Declined Credit on 3 April 2008 - Richard is Marketing Director at checkmyfile.

So, Easter is over and done with for another year - and so is the reign of Egg boss Ian Kerr, who has quit the online bank after only a year in charge.

As we reported back in February, the credit card giant caused controversy by writing to 161,000 of its customers to give them 30 days notice that their accounts were about to be closed.

Officially, Egg said that the credit worthiness of these account holders had either declined to such an extent that they were no longer suitable customers, or were at risk of doing so in the near future. However, thousands of disgruntled cardholders – including at least three millionaires - with good credit ratings have claimed that this is merely an excuse, and that they have been punished for paying their balances in full each month and hence not making Egg any money in interest payments.

Egg has denied that Mr Kerr’s resignation had anything to do with the controversy caused by the card cull, and maintain that their decision was purely based on the risk of customer groups falling into default in the future.

The move was part of a wider cost-cutting exercise by Egg owners Citigroup, which took control of the Bank in May 2007. The global credit crisis has seen many lenders tighten up their belts, and make their acceptance criteria more stringent.

This means that getting a good deal on a new credit card is not as easy as it once was. With lenders still with their hands in their pockets, access to a card that has credit card cheques available can be a real contingency to cover any unexpected downturns in your financial fortunes.

Making sure your credit rating is in good shape to is vital when applying for a credit card, and you can do this by trying checkmyfile FREE for 30 days, then for just £14.99 a month afterwards.

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