Loans and Finance

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Monday, February 11, 2008

Egg To Be Grilled

Egg and its owner Citigroup Inc are facing a possible investigation over allegations that Egg cancelled credit cards because holders consistently paid up in time.

Last month, Egg said that it was going cancel the cards of around 7% of its customers. Egg claimed that the 161,000 cardholders affected had a "higher than acceptable risk profile".

However, many of those on the hit list made vocal complaints to their MPs and the media pointing out that they had good credit records, and that they were paying off the Egg cards on time.

Following this furore, the Financial Services Authority (FSA) has been forced to get off its backside and has referred Nigel Griffiths' (an MP) complaint about the issue to the Office of Fair Trading (OFT).

Mr Griffiths said that he was "very pleased" about the FSA's action. Doubtless Egg are not so pleased.

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