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March 12, 2008

Egg chief executive resigns

by Gill Montia

Story link: Egg chief executive resigns

The chief executive of Internet bank, Egg, has resigned. He will be replaced by Bert Pijls, Citigroup’s country manager for the Czech Republic.

Mr Kerr took up the post in November 2006 and will be remembered for his decision to withdraw credit cards from 161,000 Egg customers earlier this year.

Egg, which is owned by Citigroup, has insisted that card-holders had a “higher than acceptable risk profile”.

However, many of those affected insisted they always settled their bills in full every month, never exceeded credit limits and had excellent credit ratings.

These claims led to speculation that the bank was using the opportunity to get rid of customers who were not particularly profitable, alongside risky accounts.

The bank’s decision is currently being scrutinised by the Office of Fair Trading

Mr Kerr will also be resigning from his post as head of UK consumer banking for Citigroup, which acquired Egg in May of last year.

Suggestions that Mr Kerr’s resignation is connected to the withdrawal of the credit cards have been strongly denied by Egg.

 

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