Egg on their face or ours??

[confussed]

Were you one of the 160,000 who received the now infamous letter from Egg this morning?
I was and can confirm that with all my problems, and as they received their payments by Direct Debit, I caused them no problems whatsoever. Other than the fact I didn't use the Card as often as Credit Card Companies would like us to.
Initially I thought, was it something to do with my first posting on this site a couple of days ago. Had they tracked me down?
However when I turned the TV on I found out that there were 159,999 others in the same boat.
However is it wise to give 35 days from the date of the letter advising not to use the card, when the Card Holder has in the meantime lots of time to use the card to increase their debts??
What are your thoughts on this subject?

[MelanieGiles]

I fear that this is the tip of the iceberg, and that more lenders will follow suit. This will then impact upon consumer spending, which will have a detrimenal effect upon the UK economy generally. Rocky times ahead methinks!

[Adam Davies]

hi
I agree with you
Wouldn't they be wiser to just reduce credit limits inline with balances ?
regards

[confussed]

Thank you both - thought it was just me!

[jpj]

Anyone who is suffering hard times and is using their egg card to cover outgoings etc will think S***t I better max this card in 35 days ...Maybe Egg think its better to clear out the riff raff before times get really hard! (and it is only 7% of their customers they are doing this to!)
I think Barclaycard did the same thing a while back and now refuse more applications. Melanies right,I think times are going to get tough all round.
Im just glad I did my IVA 2 years ago,and with a full and final in hand Im coming out the other side as a lot more will be going in!

[Soulgrowth]

I agree with Melanie that this is likely just the tip of the iceberg ... whilst I am no expert I have 'sensed' for some time now there will be a major revolution occuring over the next few years as to how we deal with our money. I am moving more and more towards using cash and keeping as little as possible (not that I've got much at the moment) in my bank account. As per another posting I have the bare minimum in direct debits and now have total control over my finances and who gets what and when ... thanks to going through the IVA process last year.

As a self-employed person who travels a fair bit I have the extremely useful facility of a Cashplus card ... one thing that brings a smile to my face is that when one books into a hotel which one can't do without some sort of 'credit card' now the hotel immediately swipes my card so that they have open access to my funds in case I do a runner ... what they don't know is that it's not a 'credit' card at all and I only ever have £100 on that account!

From an esoteric viewpoint Pluto has just moved out of Sagitarius (27th Jan) and gone into Capricorn ... Pluto is the planet of major transformation (and healing), Capricorn is connected to institutions, the government, nations ... and, of course money and therefore money institutions (banking) ... Pluto will be in capricorn for seven years ... so watch this space folks!

I am going back to my old Granddad's advice and keeping any money I have under my matress ... it certainly helps to keep you warm!

Some months ago I remember reading a very good article on the history of bankruptcy ... I think it was on the Thomas Charles website if it rings a bell for anyone I'd be very grateful if someone could point me in the appropriate direction ... this article very much showed that "what goes around, comes around"

Debbie [:)]

[jpj]

Sorry what was your address again soulgrowth,and which room has the mattress is the dosh under?? )
As i have said on this forum before:credit is like alcohol...you have to treat it with respect!
Ive just looked on the BBC news website and it is full of customers with perfect credit records who have been told by Egg to shove off!
I think Egg may be just getting rid of the non profit making customers (many who pay on the dot each month)as opposed to bad credit customers and just using bad credit as a smokescreen!!

[Soulgrowth]

There's nothing under the matress yet JPJ! [:D] ... but I hope there might be in the future ... one day!

Debbie

[J-DOUBLEYA]

I feel for those Egg customers who have used the card in accordance with the T&C and now find that they no longer have the facility. Egg have had problems for years and the Pru could not wait to offload it. Looks like Citi bought a pup and from my experience of Citi - serves em right.[:o)]

What happens with the outstanding balance, assuming you have a 3k balance for example. So you can not use the facility but can you continue to pay on the same T&C's until the debt is repaid ?

Does anyone know if this is recorded on your credit file ?

[anais743]

i recieved this letter too, why? I missed the news. I just presumed it was because I hadnt used my card in the last 12 months?

[Skippy]

As far as I'm aware Egg are allowing card holders to carry on paying the card monthly as normal.

[rachellxx39]

I think that it wont be long before other credit card companies follow suit.

[james.c]

I think as harsh as it is, if more companys followed egg, this might stop more people getting in to bad debt, and going BR or in to IVA's.

It would be better if the 160000 people affected were not allowed an account in the first place. - and would of been one of them people as i owed them £6k

[Drowning Fast]

They sent me an extra card and when I asked to cancel it, they told me that I had to put it in writing. Unfortunately for me I didn't get round to it, but they gave me ridiculously high credit limits - £10,800 on one card!

[J-DOUBLEYA]

This is shutting the gate after the horse has bolted - typical americans !!

Glad that they will let people pay off the debt at the contractual rate. I hope that this does not have a detrimental effect on peoples credit file