Barclay’s buying a different kind of egg this Easter
March 2, 2011
Whilst many people will be busy buying Easter eggs for friends and family over the Easter period the banking giant Barclay’s will be after a very different kind of egg – or more than a million of them to be more precise. It has been announced that the financial giant is set to buy the accounts of more than one million Egg credit card customers from the Internet banking giant Egg, which is part of Citigroup.
It is hoped that the deal will be completed within the first half of the year if regulatory approval is granted. Barclay’s wants to increase its portfolio according to reports and therefore purchased the assets for an undisclosed sum. However, whilst Barclay’s and Egg may be happy with the deal many customers who feel they may be affected are worried.
No indication has yet been given as to whether Barclay’s will change the terms and conditions of an Egg accountholders who are now switched to Barclays. It is thought that cash back levels will remain unchanged for those that switch to a Barclay’s card as part of the acquisition. However, naturally customers are keen to know whether there will be other changes but no details have been revealed by Barclay’s or Egg regarding this matter.
The finance director from Barclays, Chris Lucas, said: ‘The acquisition of Egg’s UK credit card accounts has been priced at a significant discount. Based on current projections, we expect the transaction to exceed the financial return targets set out at our recent results announcement.’
Tags: buying, matter, barclay, family, Internet, mainstream capabilitiesAnother Barclays spokesperson said: ‘Barclaycard has a long history of providing simple and innovative payment solutions for our customers since launching the first UK credit card 45 years ago. We are very pleased to welcome over a million Egg customers and to provide them with access to our mainstream capabilities in areas such as mobile and contactless payments, digital servicing and instant rewards.’
Consumers make everyday purchases with credit cards
December 2, 2010
An industry official has pointed out how people are now using credit cards to make everyday purchases rather than reserving them for one off purchases, luxury items, or more expensive items. In the past many people that had credit cards only used them in emergencies or if they were buying something that they could not afford to pay for in one go.
However, these days more and more people are using their credit cards to make everyday purchases, from paying for groceries and travel to paying for drink and lunch in the pub. The convenience and ease of credit cards has made them very popular amongst consumers that don’t want to be carrying cash around everywhere. They have also proven to be a financial lifeline for many people that have suffered financial struggles due to the credit crisis and recession.
Richard Sorsky, who works for the UK Insolvency Helpline, said that credit cards were no longer seen as a luxury, and rather than being used by wealthier people, as they once were, they were now tools that were used by the average consumer to pay for many different items both online and on the High Street, as well as by phone.
He said that more people were now spending instead of saving, and this was because it was impossible to save any significant amount of money for some people due to the high cost of living. There is also the fact that most people are not getting any return on their savings due to low rates of interest from banks.
Another recent report has also highlighted how popular credit cards are becoming, but industry experts want to ensure that consumers are being sensible with their credit cards as well as enjoying the convenience and ease that they offer.
Tags: consumers, buying, recession, Richard Sorsky, consumer, Credit Cards