Complaints over cancelled egg cards

The bank has sent letters to 160,000 people with a "higher than acceptable risk profile" informing them that their credit cards will stop working in 35 days.

This would typically mean those who spend over their credit limit or fail to make minimum repayments.

But a number of those who have received a letter have insisted that they had excellent credit ratings.

Some speculated that Egg wanted to get rid of them because it made no money from their good financial management - something the bank insisted was "absolutely not the case".

Labour MP Nigel Griffiths, a former Consumer Affairs Minister, called on the Financial Services Authority (FSA) to investigate the bank's move.

Gillian Cox, of Farnham, Surrey, said she was "absolutely furious" her credit card had been cancelled, telling the BBC: "My husband and I have had an Egg card since 2001 and always paid the balance off in full each month. We are retired, no mortgage, no debts, joint income of about £35,000. I phoned Egg who were unable to do anything but recite the same paragraph as was in the letter."

When Mrs Cox contacted credit reference agency Experian, she was told she had an "excellent" credit rating.

The bank began sending out the warning letters on Thursday to 7% of its two million credit card holders. It is not asking for immediate repayment of balances or making any changes to current terms and conditions.

A spokesman insisted the move was not linked to the credit crunch but followed a "risk review" of its customers which was carried out after investment bank Citigroup bought Egg last year. He said: "Egg is sorry that some customers are upset after receiving notification that it is ending their credit agreements. Egg has decided that it no longer wishes to offer credit to these customers, after conducting a one-off extensive review of its credit card book following the acquisition of Egg by Citi in May 2007."