Responsible credit card customers may be as vulnerable as reckless ones depending on how much profit banks can make from them. Credit checking agencies are reporting that banks are withdrawing credit cards from responsible customers simply because they aren’t making a big profit on them. Furthermore, some banks are also introducing annual charges for those who only use their accounts rarely.
The reports follow Egg’s decision to withdraw credit cards from customers who it deems to have a ‘higher than acceptable risk profile’, though it has been reported that those being penalised include responsible customers who pay off their balance each month and haven’t breached their credit limit. Egg are planning on withdrawing cards from 7 per cent of customers – a total of 161,000 people.
Loan Charges Appearing as Responsible Customers Have Cards Withdrawn
Wed, 06 Feb 2008
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