Thread: What if the Egg breaks?

I assume you will still owe the money.
The official receivers will probably pass the debts onto a debt collection company.

Its pretty unlikely that Egg will go under, considerably more likely that if its looking like curtains they will go get bought out for £1 and agreement to take on debts by some other institution that wants its market share.

They will then amalgamate products etc, get rid of staff, make cost savings, see if they can squeeze a bit more out of the customers etc.

If you are hoping to borrow money from then and not have to pay it back, not a chance realistically.

Hey Guy's

With respect "Don't be ridiculous!".....

Egg is is part of The Prudential, a massive global corporation!!!

However, Egg has been in financial difficulties before in France!
Now of course, there is always the possibility that the PRU could decide again, to sell EGG. Then there would have to be a "rescue" by the financial services, to save loss of face.
The chances of this happening is extremely remote...it would not happen.

JMHO

AC

Given that Egg are largely an 'innovative' new company that is isolated from the wider banking world, massively in debt and is actively looking for a buyer they are a risky company especialy if you calculate the liability they have with all these back charges.

Eggs potential risk:

If there was an 'average' of 5 charges per customer over 6 years at £20, with an average 'actual' (very conservative) cost of £4 this would leave a balance of £16 * 5 charges * 2.8 million customers = £224m

A potential total of £224m wiped off the value of egg (25% of it's value as of dec last year)

I this is only a theoretical risk and is based on highly conservative estimations of average assumption of a customer having only one charge per year. (I had 40 over 6 years)

Even at 2 charges per customer per year, over 6 years, this is a crippling 50% of the value of the company.

Bigger banks can absorb this risk but egg are only worth about £950m as a single entity (as of december last year) so it does not suprise me in the least that egg are defending these claims (it would appear) the most rigourously.

The upshot of this is that if prudential wish to sell egg then buyers would have to take this liability into account and that makes egg poor value for money.

Magz

Don't forget to add on the credit card repayment protector insurance that was added to a lot of peoples accounts without authorisation and mere £20 a time overlimit and late payment charges begin to look like chicken feed.

I am after a handful of £20's and £1100 of insurance they took without authority.

JULI99

I didn't even do a balance transfer.

Have you read my thread about this?

Basically they sent me a screen shot saying I had asked for insurance when I had applied on line for my credit card.
Only thing is the screen shot they sent to back this up has my loan account number on it. This was taken out years later and I know I did not ask for insurance. I have asked for a copy of my credit agreement on the loan account and I have not heard a dickie bird. They are now in the "committed a criminal act" territory.

I think they have been too clever by half am wondering which way to turn now. I do get the impression that they think we are stupid and a few "clever" words by them will scare us into giving up.
It is the way that all their replys seem to suggest that we all owe them money and they will come after that money if we dare to take them to court.

juli99

Hey Jaynekul

When did you post your Data request letter?

I posted mine today and have been reading tons about Egg claims... looks a bit scary but will perservere.

Maxine