EGG CEO-Ian Kerr resigns

Ian Kerr, Citibank executive and CEO of Internet bank EGG has resigned with immediate effect. It has been unclear if Mr. Kerr couldn’t bear the weight of responsibility after EGG decided on an ad hoc move to withdraw more than 160.000 credit cards. Thousands of accounts were deactivated in a single month on a move justified by an EGG spokesperson as a necessary move to avoid possibly loses from customers with a higher than acceptable risk profile.

The bank’s claims are coming in contrast though with valid claims pointing out most customers affected had excellent credit records. Fully paying of bills every month and non-exciding limits do not comprise of high-risk profiles, on the contrary. Nevertheless, this attitude was not favouring profits as EGG cardholders enjoyed a percentage of their credit card payments as cash back in the end of the year. This served EGG as a marketing tool, actually rewarding the very same consumers whose accounts where deactivated.

Labour MP Nigel Griffiths’ not only welcomed the resignation but also filed complaint to the FSA (Financial Services Authority) over Egg’s move and the plead has been forwarded to the Office of Fair Trading.

Now EGG is in the middle of a PR storm, unable to justify thoroughly or convincingly neither the public nor the financial regulators their move and the reasons underlying were legit and fair. Investigations carry on while Ian Kerr gets a similar taste to that his former customers got for being dumped.