As many of you will have read over the weekend, the actions of the bosses of the internet bank Egg have caused rather a great deal of upheavel in the world of finance. With over 160,000 angry egg card holders being rejected by the bank, these customers are now demanding to know why exactly their credit cards will be of no use in 35 days time.
As Egg states it is only customers with bad or deteriorating credit records that will no longer be accommodated by the bank, but what I would like to know is why are people with good credit records also being turned down by the bank?
It does seem that Egg have got themselves into a sticky, or should i say scrambled (!) situation. When reading the latest news in the headlines, it appears that Egg infact have just decided that these people are customers who they simply do not want to lend money to any more. A little odd seeing as many of the customers rejected by the bank have been marked by the credit reference agency, Experian, as having ‘excellent’ credit ratings. Unfortunately for the bosses of Egg, it appears that they are simply not making enough money off many of these customers and so have decided to give them the boot.
In my experience, banks are all the same – despite offering themselves as a service, they are of course businesses, with bosses and bank managers all determined to feed their capitalist appetites from the huge number of very normal people out there who do sometimes run themselves into debt. Which of course is very easy when these establishments can just slap on a £150 charge for a minor £20 overspend that was only due to uncleared funds. I won’t mention any names, as this has gone to court!
I have a great deal of sympathy with these Egg customers. Although many people will retort that the bank is doing those customers in bad financial situations a favour, by preventing them from being able to spend more on their credit cards and thus stop them from the perils of further debt and a bigger overdraft, then someone do tell me – what are these people going to do now? They have little choice but to take their custom to other banks, surely defeating the supposed object of this charade by Egg, to curb their spending.
I fear, dear readers, that Egg may be boiling over…