Egg Investigation: Office of Fair Trading

Egg Investigation: Office of Fair Trading

Egg faces investigation by the Office of Fair Trading after refusing to back down from withdrawing its credit card to thousands of “riskier” customers.  Egg, which was owned by Prudential and was bought by Citi UK in May 2007, decided in January this year to end the credit card agreements of 7 per cent of 161,000 customers.

An Office of Fair Trading spokesman said it could not confirm the number of complaints received, but was considering the complaints and whether to launch the investigation, but do not know when.

Our view

Contractually Egg can withdraw a line of credit at any time.  Although harsh, we suggest this is a sensible move to get people who are not managing their credit well to do so.  Of course, Egg will not be popular for the move but in the wrong run we suggest people will thank them for it.

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