Egg, a Citibank-owned online bank in the UK, announced this past weekend that it’s canceling the accounts of 161,000 of its customers after “conducting a one-off, extensive risk review.” The future ex-customers will be able to pay off their balances according to current agreements, but in a little over a month the accounts will be deactivated.
The company has given seven percent of its credit card customers 35 days’ notice that it was ending their card agreements, [an Egg spokesman] said. “The credit profiles of affected customers had deteriorated between the time they joined Egg and the acquisition (by Citigroup) in May .”
We wonder if this is an isolated event to reduce Egg’s risk, or if other financial institutions will implement this sort of pre-emptive strike against customer defaults?
“Web bank Egg withdraws cards from riskier customers” [Reuters]