Smash the "Egg"- what's going on with cardholders of British bank Egg

One of the biggest global Internet banks, British bank Egg has announced the termination of its 160, 000 cardholders agreements due to their deterioration.  Internet bank Egg was acquired by Citigroup in May 2007 with the closing deal US $1 billion. At present time it's  integrated into the Citigroup UK consumer unit.   As it was explained in the official press-release the decision was taken based on the revision of about 7% of Egg's credit card holders.

Meanwhile Egg authorities have "kindly" agreed to give to said customers a 35 - day notice stating the ending of their card agreement and to provide them with sufficient time to repay the balances either partly or in full. The decision of one of the major players of the Internet banking industry brought up severe critics and serious discussions doubting the legal basis of such move. Some of the "currently unfavorable" customers have covered the issuance of the independent credit rating checks that proved their reputation of being decent customers, however, it didn't bring them any success to receive the prolongation of their existing agreements or any review of their cases. Some of the Scottish lawmakers have stated that within last time it became so easy to receive the credit without proper checking of customer's credit rating so Egg has  nothing to be blamed or accused for. In other words, the customers of low profitability have been simply cleared off by Egg.

The decision of taking such a risky review of the account holders history is partly resulted  by the immense losses of the banks and financial institutes caused by mortgage and credit crisis followed combined with the general deceleration of the world's economy and tremendous amount of US dollars flashed by China, South Korea, and other countries into American and European banks.

Natalia, reporter of Ecommerce Journal