Banking giant blocks 160,000 customers' credit cards in crackdown on out-of-control d

[zazen.warrior]

Post removed.

Edited July 29, 2010 by zazen.warrior

[gill5blue]

EXCELLENT-THIS IS MASSIVE

I think it is knowing that most of the consumer credit agreements are invalid and to avoid people owing even more to credit cards before they find out their agreements are possibly invalid.

 

Maybe these accounts have been investigated by the credit company and found out they are invalid before the consumer has found out-if the account is closed you cannot request a CCA (i think)

[rory32]

I think it is knowing that most of the consumer credit agreements are invalid and to avoid people owing even more to credit cards before they find out their agreements are possibly invalid.

 

Really? Egg are the best at supply agreements that are enforceable, in fact I haven't seen one that is outright unenforceable. Perhaps you might take a closer look at who now owns Egg.

Maybe these accounts have been investigated by the credit company and found out they are invalid before the consumer has found out-if the account is closed you cannot request a CCA (i think)

You can request a copy of the agreement when the account is closed. They don't need to supply a copy of the agreement only if no sum is owed on the account or will become owed.

[clutchingatstraws]

The decision is based on risk they may be closing accounts on 13% to offer accounts on 18%.

 

Now that a reccesion is inevitable the banks are jumping into the lifeboats before the iceburg appears.

[zazen.warrior]

Post removed.

Edited July 29, 2010 by zazen.warrior

[noomill060]

On moneybox it was reported that many of accounts cancelled are actually the ones that are paid off at the end of the month.

 

It would seem they are cancelling those accounts which they dont make any money out of...

 

This report is at the end of the show.

 

BBC iPlayer - Radio - Radio 4

[JonCris]

On moneybox it was reported that many of accounts cancelled are actually the ones that are paid off at the end of the month.

 

It would seem they are cancelling those accounts which they dont make any money out of...

 

This report is at the end of the show.

 

BBC iPlayer - Radio - Radio 4

 

I heard this too. In fact I know someone who pays their balance off each month (he's a lawyer who usually pays days before any payment is due) who is having his card cancelled - He has intimated that if this unwarranted action by EGG effects his excellent credit rating he WILL immediately sue them for defamation - As it is he has reported them to the FSA for what good it will do- Incidentally Angela Knight (probably the most hated woman in the UK) thinks it's a good idea - so that's OK then

[clutchingatstraws]

From Westminster to banking politics

Name: Angela Knight CBE

Age: 56

Career history: Graduated in chemistry from Bristol University and began working for Air Products, an American industrial gas company. Co-launched Cook & Knight Metallurgical Processors, an engineering company, where she was chief executive. Sheffield City councillor, 1987 to 1992. Elected Conservative MP for Erewash in 1992. Economic Secretary to the Treasury from 1995 to 1997, when she lost her seat. Chief executive of Association of Private Client Investment Managers and Stockbrokers, 1997 to 2006. Became chief executive designate of the British Bankers Association in January 2007. Non-executive director of LogicaCML.

Hobbies: Walking, skiing, music, books.

[MrSensible]

Excellent news. About time somebody took a stand.

 

All we ever here about is how the poor unfortunate debtor was encouraged to spend money because of easy credit. Now they are moaning because they cant get it!

 

As for that lawyer, GET A LIFE. How on earth will it affect his credit rating? What a knowledgeable lawyer he is...not.

[JonCris]

From Westminster to banking politics

Name: Angela Knight CBE

Age: 56

Career history: Graduated in chemistry from Bristol University and began working for Air Products, an American industrial gas company. Co-launched Cook & Knight Metallurgical Processors, an engineering company, where she was chief executive. Sheffield City councillor, 1987 to 1992. Elected Conservative MP for Erewash in 1992. Economic Secretary to the Treasury from 1995 to 1997, when she lost her seat. Chief executive of Association of Private Client Investment Managers and Stockbrokers, 1997 to 2006. Became chief executive designate of the British Bankers Association in January 2007. Non-executive director of LogicaCML.

Hobbies: Walking, skiing, music, books.

& telling porkies:-x

[Docman]

If egg close the account, and there is a balance still outstanding, will they be able to continue charging high rates of interest?

[Goldlady]

I was wondering about that Docman. If I had an Egg card and they did that to me I would insist that no future interest was charged. I would certainly treat the o/s balance as very low priority.

[JonCris]

Perhaps we can expect about 160,000 new members all of whom will be seeking ways of having their agreements made unenforceable:D

 

I think Egg have, not for the 1st time, really shot themselves in the foot particularly as they are actually bragging about what they are doing:eek:

 

At the very least I think it's going to be a public relations disaster

[clutchingatstraws]

And they say that customer loyalty is dead.

[JonCris]

Loyalty - don't make me larf - if it slapped Egg in the face they wouldn't know what it was

[SoSensible]

Where is creditor loyalty? They lend you money, you try to avoid paying. Someone offers lower interest charges you swap. It works both ways.

[Welshwoofs]

What will be interesting will be to see if this starts a domino effect and other banks follow Egg's lead.

 

What I don't understand is that, as has been said above, a lot of the people who's cards have been cancelled were total balance payers so one can only say they're being cut off because they're not profitable customers.

 

What I'd like to know is what are the repayment terms if Egg shed you? Is the customer able to repay over as long a period as they want, or are they capping the repayment period? If it's capped and more banks follow Egg's lead this could potentially leave some people in massive financial problems.

 

I've got an Egg Money card (zero balance) and not received one of these letters, but I'm going to cancel mine anyway. Consumer power I say!

[zazen.warrior]

Post removed.

Edited July 29, 2010 by zazen.warrior

[Docman]

Where is creditor loyalty? They lend you money, you try to avoid paying. Someone offers lower interest charges you swap. It works both ways.

 

Extracts from a certain financial institution's T & Cs:

 

creditor - 'us' or 'the Bank'

 

loyalty - '???' word is not known or does not appear in agreement.

[Goldlady]

Rory Bremner this morning:

 

"How would you like your eggs dear, scrambled, boiled or cancelled?"

[tifo]

Perhaps you might take a closer look at who now owns Egg.

 

Citi ....

[bluedannyw]

Since requesting a cca from arc europe who were a dca working for egg. I have not heard from egg or any dca concerning this account. Initially arc europe were rude and would not take my request seriously. But finally they gave in and passed the account back to egg.

Maybe egg have realised with their on line application and no further paper work, that they are up the creek without a paddle! My heart bleeds for them!

[sosumi]

Debt Purchase

 

The sale of overdue debt has long been a part of the credit and debt management process in the US, where over USbn of consumer debt is traded annually. In the UK, it is a relatively young market and one that is growing rapidly

Leading the pack

1st Credit has played a major part in the growth of the debt purchase market in the UK having spent over £300m since 2002 purchasing portfolios which have a face value in excess of £3bn.

1st Credit purchases uncollected consumer debt at a discount to face value from lenders, including banks, credit card companies, utilities and retailers; 1st Credit’s expertise lies in working with the credit originator to evaluate the optimal solution and thereafter carrying out the recovery process in a manner that underlines and befits our leadership.

1st Credit seeks to purchase accounts across a wide range of consumer debt from:

• An early stage in the cycle - sometimes as early as 30 days overdue - through to very old and tired debt, normally written-off.
  
• Banks, credit card companies, finance houses, telecommunication companies, utilities and retailers.
  
• Credit cards, secured and unsecured loans, hire purchase agreements, bills, overdrafts, revolving credit, ...

1st Credit has an exceptionally strong balance sheet and robust cash flows, supported by the backing of its investors, Bridgepoint Capital, the private equity house, Barclays Bank and Citibank. This financial strength allows 1st Credit the flexibility to enter into a wide variety of debt purchase agreements, whether forward flows or spots, substantial or smaller

transactions.

1st Credit

 

Not forgetting DLC - as in Direct Legal and Collections:

Why is Citi 'A Principal' of Hillesden (DLC)?

The FSA Register cites CitiFinancial Europe PLC as a 'Principal' of Hillesden Securities - Direct Legal and Collections is Hillesden's 'trading name.

 

[renegotiation]

I love the 'leading the pack' bit Sosumi. Pack of what exactly? :o :o :o

[sosumi]

Ren.

There's more:

Purchase Power

 

 

 

 

 

1st Credit has an exceptionally strong balance sheet and robust cash flows, supported by the backing of its’ investors, Bridgepoint Capital, the private equity house, Barclays Bank and Citibank. This financial strength allows 1st Credit the flexibility to enter into a wide variety of debt purchase agreements, whether forward flows or spots, substantial

or smaller transactions.

Why sell debt?

Selling consumer debt to 1st Credit earlier in the cycle provides clients with:

• Immediate returns on overdue debt
  
• Certainty of financial planning
  
• Reduced operating costs from administration and collection of debt
  
• Ability to focus on core business and free up workforce
  
• Reduction in cost of capital as loan resources no longer required
  
• Direct bottom-line benefit for written-off debt

They don't do their links well. So if you want to see the original, go to their web page here:

1st Credit

then click 'Services' on the left, and then 'Debt Purchase'.