Loans and Finance

Loans and Finance

Text

News and information about loans, money, debt, finance and business issues.

Wednesday, March 12, 2008

Egg on its Face

Ian Kerr, the chief executive of Egg, has resigned in the wake of the public relations disaster in which Egg was accused of unfairly withdrawing credit cards from thousands of responsible customers.

Egg, in an act of sheer folly, last month sent out a letter to 161,000 card users telling them that their agreements would be terminated in 35 days because they had a "higher than acceptable risk profile".

The reality being widely touted in the media and by experts was that Egg was dumping customers who paid off their debts on time, these were deemed to be unprofitable.

Labour MP Nigel Griffiths is quoted in The Times:

"I don't believe in pointing the finger...and I have not been seeking Ian Kerr's resignation. But I think it gives a clear warning to all banks and credit card lenders that they must be frank with customers.

I don't feel Egg realised the enormity of the communications disaster they were presiding over by withdrawing cards from 160,000 customers. Egg is a sad lesson to others that they cannot withdraw credit cards from responsible customers without those customers screaming blue murder
."

The Financial Services Authority has passed the matter on to the Office of Fair Trading.

Egg deny that Kerr's resignation is linked to the fiasco.

No comments:

Post a Comment