The Wall Street Journal-20080213-U-K- May Probe Citigroup Unit

Return to: The_Wall_Street_Journal-20080213

U.K. May Probe Citigroup Unit

Full Text (114  words)

Associated Press

LONDON -- Britain's Office of Fair Trading said it had received a complaint about Egg Banking PLC's decision to cancel more than 160,000 credit-card agreements and was considering whether to investigate.

Egg, one of the largest online-only banks in the world, said this month it was clearing from its books about 161,000 credit-card customers whose credit profiles had deteriorated.

Some customers disputed the assessment, asserting that their cards were canceled because they regularly paid their balances in full and denied Egg profitable interest charges.

The bank, which was bought by Citigroup Inc. last year, says the letters canceling customers' agreements were the result of a risk review after its purchase by Citigroup.