PR Week Echo Columns

Egg, bought from Prudential by Citigroup in 2007, risked a consumer revolt by withdrawing credit cards from 160,000 customers having what it termed a "higher than acceptable risk profile" (Daily Mail, 3 Feb). Newspaper feedback sites and financial services' blogs were immediately deluged by cardholders complaining that the real reason was their perfect payment records meant that they ran up no interest and accusing egg of "using this as an excuse to get rid of unprofitable customers" (Evening Standard, 5 Feb). Rejected customer Gillian Cox, from Farnham, Surrey, described it as an "unbelievable arbitrary action" (Sunday Times, 3 Feb).
In egg's support, Peter Brooker, public affairs director of credit reference agency Experian, said the move would not have "a negative impact on the credit rating of those affected and could even improve it" (BBC News, 2 Feb). Angela Knight, of the British Bankers Association, called egg's action "a sensible way of looking after business" (Sunday Mirror, 3 Feb). While egg's action was blamed on a review by its American owners, who are exposed to the subprime mortgage crisis, and the global credit crunch, a number of MPs including John McFall, Chairman of the powerful Treasury Select Committee, called for an immediate OFT enquiry (Observer, 3 Feb).