The EggCard Is Showing Cracks

A report over at the BBC informs that internet bank egg is not in the black when it comes to making a profit. Apparently consumers are borrowing less on their credit cards and more people are defaulting on their loans, many by using the ever-more popular IVA (individual voluntary arrangement).

We've promoted the eggcard on cardtart.com for what must be getting on for 3 years now and have enjoyed some success with the product. If my memory serves me well, I seem to recall that egg were one of the first credit card providers to offer 0% balance transfers. Egg were certainly pioneers of online banking - you don't even receive a paper statement in the post, rather you just receive an email informing you that your current statement is now available to view online.

I suspect that reports of a downturn in credit card borrowing will be on the increase. To some degree the market has itself to "blame". Card borrowing exploded when the 0% deals were easily had but now to curb the demand, transfer fees are applied to balance transfers by a majority of the card issuers. Perhaps at some later date the market will relax the criteria again?