Boss of internet bank Egg resigns

Egg is still advertising for new customers

The boss of internet bank Egg, Ian Kerr, has resigned.

The announcement comes after a row over the bank's decision to withdraw 161,000 credit cards, a move that angered many customers and consumer groups.

The bank, owned by Citigroup, said the customers were a poor credit risk but many of those affected insisted they paid their bills in full every month.

Egg said Mr Kerr's resignation was of his own accord and was not related to the credit card cancellations.

Mr Kerr, who had run Egg since November 2006, will be replaced by Bert Pijls, Citigroup's country manager for the Czech Republic.

The credit card cancellations affected 7% of Egg customers.

Many of the customers affected said they had good credit records and claimed that Egg cancelled their cards because they did not make enough money for the bank.

Egg denied this and said the customers might become a high risk in the future.

Labour MP Nigel Griffiths, a former consumer affairs minister critical of Egg's actions, welcomed Mr Kerr's resignation.

"Egg presided over a PR disaster, withdrawing cards from thousands of perfectly respectable customers and failing to give full and honest reasons," he said.