Thousands of Egg Card account holders will have to pay significantly higher rates after a review of customer risk levels was conducted by the company. With just a week’s notice, some customers will now have their APR ramped up from the current rate of 16.9% to a whopping 21.9%, which just about takes the egg card into the territory of a ‘bad credit’ credit card rather than a general purpose one.

Although the reason given for the increases by Egg’s new owners CitiGroup was that the new rates reflect the creditworthiness of individual customers, and therefore the risk to the company, reports abound that cardholders who’ve never missed a payment or even paid late are seeing rate hikes too.

Indeed, some people are reporting that they hardly ever use their egg card, nor carry a balance on it, and yet are still being told they must pay more.

Citi have responded to the criticism by saying that in any review of pricing there will be winners and losers, and that some customers have seen their rates drop to as low as 10.9%, although hard figures on this were not forthcoming.

This entry was posted on Saturday, March 17th, 2007 at 12:13 pm and is filed under General Credit Card News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.