28 February 2008
Despite criticism over its decision to cancel the credit cards of 161,000 customers, bank Egg said that it did not plan to change its policy.
It claimed that the credit cards had been cancelled after a review taken into the risk profiles of the customers involved suggested they could run into financial problems in the future.
Egg explained that it analysed changes in these people's behaviours - such as applying for additional cards or altering their spending habits - to determine who was a likely risk.
"So while some customers in that group may be up to date with their payments and have a good record with credit reference agencies and so on, the probability of them becoming a high-risk customer in the future is higher than we wish to accept," a spokesperson said, according to the BBC.
The bank denied that the reason it had cancelled the cards was because it was failing to make a profit from these customers who consistently paid off their borrowings.
Labour MP and former consumer affairs minister Nigel Griffiths has already filed a complaint about the cancellations with the Office of Fair Trading.
© 2008 Adfero Ltd
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