Egg to ditch dodgy customers

[Ardesco]

The problem may arise on other applications for credit or insurance. For example, my car insurance form asked, "Have you ever been refused credit for any reason whatsoever". An honest ex-Egg customer will have to answer yes, and possibly suffer increased premiums/interest rates.

Well theoretically you haven't been refused credit because you were initially given it. The fact they seem to be binning unprofitable customers who have good credit records would indicate they are just cleaning the board rather than getting rid of bad risk customers.

[meridian]

Well theoretically you haven't been refused credit because you were initially given it.

Does the same argument apply if your credit has been withdrawn because you haven't made your repayments?

[pisces]

did anyone see that documentary a couple of years ago about working at Egg? It was so funny, they kept on saying how they were individuals like they had been brain washed!!!!

I don't think anyone's in any doubt they are ditching non-profitable customers rather than just bad payers. Cherry picking!! Won't work though since they are so uncompetitive these days.

R

A mate of mine did some work for them. Said it was being back in 'skool'

[Ardesco]

Does the same argument apply if your credit has been withdrawn because you haven't made your repayments?

In this case you will have a black mark on your credit record and your account will be marked as a default. Egg have stated that they are not going to mark your credit records when closing accounts.

[AtW]

Egg have stated that they are not going to mark your credit records when closing accounts.

This kind of proves that they are on shakey grounds here - if they did so and it was incorrect decision it would have cost them big bucks in lawsuit as they would have caused actual damage to people who they incorrectly called high credit risk.

[Ardesco]

This kind of proves that they are on shakey grounds here - if they did so and it was incorrect decision it would have cost them big bucks in lawsuit as they would have caused actual damage to people who they incorrectly called high credit risk.

Even if you are a bad credit risk they can't mark your account detrimentally if you have always paid them their due on time. That really would bring about legal challenges!!!

[PAH]

So they (officially) are closing these accounts because they are viewed as a bad risk, but won't actually put a bad mark on the credit references which is there to allow companies to identify bad risks.

Talk about the hypocritic oath.

[Peoplesoft bloke]

So in summary, a big business has decided to do one thing but dressed it up as something else. Evidently someone thought that the general public were too dim or apathetic to notice and they were wrong - just another week in the Dilbert paradise that managers inhabit eh?

[meridian]

In this case you will have a black mark on your credit record and your account will be marked as a default. Egg have stated that they are not going to mark your credit records when closing accounts.

Perhaps, but my point was in regard to what you put onto future applications for insurance or credit and whether or not Egg's closing of accounts is technically being refused credit.

[Ardesco]

Perhaps, but my point was in regard to what you put onto future applications for insurance or credit and whether or not Egg's closing of accounts is technically being refused credit.

But then you could also walk into a bank and ask for a mortgage for £1Million. When they say no, but we can offer you £100,000 would you class that as being refused credit?

You could also say the barman at your local refusing you a tab is refusing credit... Where do you draw the line?

IMHO it means have you ever had a black mark put on your credit record that prevents you getting credit.