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Egg Banking: PPI, Facts and Figures

Egg banking was established in 1998 when it hatched from the Prudential’s banking arm, becoming the first internet bank. They quickly gained more than two million customers as it launched the very first internet bank attracting over £6 billion of deposits in the first 10 months.

Within the first 12 months of being established they launched their first online credit card. 12 months after that, the dot com boom led to hints from Prudential that they were looking at floating Egg and analysts predicted that the business could be worth £4 billion.

Expansion

The floating of Egg valued it at £1.3bn and there was also the launch of La Carte Egg in France which was quickly closed with losses of £150m.

In 2006, six years after being floated, the business is valued at £973m compared to the £1.3bn that it was valued at just six years previous. Citigroup then bought Egg from the Prudential for £575m, even less than what the business was actually valued at.

Egg Sale

Citigroup sold off Egg’s UK credit card business to Barclays for an undisclosed amount but in a statement it said they expected to make a net profit from the deal. The deal saw an estimated 1.15m credit card accounts with £2.3bn gross receivables.

Prior to this sale going through, in 2008, Egg group were fined £721,000 for mis-selling payment protection insurance to approximately 40,000 customers. They were fined for persistent mis-selling of the insurance on their credit cards and the policies that they were pushing on their customers, as many others have done too, was in most cases, useless.

They were found to have forced the insurance upon their customers and in some instances, any customers who were asked if they wanted any insurance and replied “hmmm” were actually signed up anyway.

Citi no longer hold any part of Egg. Barclays, as mentioned have control of the UK credit card business and the Yorkshire building society have control of the savings and mortgages part of Egg.

Barclays Control

Barclays aren’t angels either when it comes to the mis-selling PPI. They have been found guilty of mis-selling PPI on a number of occasions and the amount of money that they’ve set aside, known as the Barclays PPI bill, has hit a grand total of £5 billion.

Barclays also offer a number of paid for bank accounts. Like a number of other big banks in the UK, they offer a range of paid for bank accounts that come with a variety of benefits. Here is the page that lists all of the different ‘packs’ that they offer.

If you think that you may be owed money either for mis-sold PPI or a mis-sold packaged bank account, you can start a claim with us today by filling in our online form and we’ll send a claim pack out to you with a pre-paid envelope so that you can get it sent back in to us as soon as possible and we can start your claim. If you’ve got any questions, the live chat feature on our website is a fantastic way for you to talk to one of our claims experts who will be more than happy to help you.

Egg PPI

Egg PPI

About the author

Daniel Lee

Company Director

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