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Egg to be probed by MP

A Labour MP has said that credit card firm Egg must apologise to some of its customers, who recently had their cards cancelled.

Around 161,000 people were contacted by the firm earlier this year, following an internal review.

They were told that they were a 'credit risk' and would have their accounts frozen within a month - with only repayments on money owed allowed.

Nigel Griffiths said yesterday that Egg had "a lot of explaining to do" and that he would be meeting with the card provider's chief executive, Ian Kerr.

The MP referred to allegations which surfaced after the cancellations, suggesting that many customers who paid off their balances every month were included in the cut-off.

Much of the profit earned by credit card firms comes from the interest they gain from money owed on outstanding balances.

"If you want to get rid of customers who are not bad credit risks but who you just don't make money out of, then you should make a charge for your card," Mr Griffiths suggested.

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