April 8, 2008

Egg puts borrowers in a scramble

The credit crunch is really taking hold and some people who use the internet bank EGG are about to find out that things are going to get a lot harder. The bank is going to stop some 161,000 credit card customers from making any future transactions on their cards; clearly this is going to hit these customers very hard.

The bank says that these customers, which amount to around seven per cent of their customer base, have been highlighted as being higher than acceptable on the scale used for risk decision making. These customers will be receiving letters anytime soon explaining the situation and informing them that their cards will be cancelled in around a month’s time.

To get into that risk category a customer would have to have been over the limit of the card and/or not having paid the minimum payment on the amount owning on the card.

Source [Credit Cards Com]