Web bank Egg withdraws cards from riskier customers

Web bank Egg withdraws cards from riskier customers

www.reuters.com

LONDON (Reuters) - Egg, the Internet bank owned by Citigroup (C.N: Quote, Profile, Research), will withdraw credit cards from 161,000 customers following a risk review, a spokesman for Egg said on Saturday.

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I've never heard of a company pulling such a large number of credit cards at one time. At least they're not demanding full payment be made right away. Actually, in the long run, they might be doing these people a favor but if this was the only credit card these people had then it could be a real problem.

I wonder how deep and how wide this recession is going to cut?

www.reuters.com
(visit the link for the full news article)

Alot of people were calling in to BBC Radio 1 today to say they had their cards pulled, but had excellent credit scores and had 0 balances on their cards, which I found strange for Egg to do.

Also, Egg deny it is to do with the credit crunch, but surely it is?

Wow, I wonder if a similar action is going to follow here in the U.S., this definately is going to have an negative impact in the markets on Monday. They were smart though they announce it on a Saturday, just to give enough time so investors can analyze the move.

Egg's new owners are American company CitiBank, so maybe it will happen over there too, if not already.

Wow this 'is' big news! Thanks for the heads up. The markets world wide are showing vulnerable and volatile sides, this is a shame. Now are the banks and lending institutions going to start calling our mortgages because of the supposed sub prime delema? well remember, most of us are in this together.