Egg was formed in the United Kingdom under Prudential. Prudential launched Egg as the UKs first internet bank in 1998. Customers were able to operate their account either over the internet or by means of the company call center. Their main focus was savings and insurance, including Payment Protection Insurance (PPI).

Through the years there were changes in ownership by various banks in the industry. They have dealt with their fair share of controversies. One of the main controversies of the company’s history is the Payment Protection Insurance (PPI) scandal.  Egg was fined for the persistent mis selling of PPI on its credit cards. As a consequence of this, they have been fined a large amount of money and are forced to reimburse clients for the mis sold PPI that was sold to them.

 Where did EGG go wrong?

All over the UK, there have been issues with the past mis selling of PPI. It was discovered that many companies in the banking industry were fraudulently selling this product which covers you in the event you are unable to make a payment on your load or debt (illness, unemployment, etc.).

This product proved to be very profitable for the banks so they were doing everything in their power to sell it. What was happening was, people had either been sold PPI without the customer’s knowledge, sold as if it were necessary or mandatory, or sold to the wrong individuals who would never be able to file a claim anyways due to certain circumstances. All of these things happened at Egg, but there were a few additional elements that added to their situation.

Egg was authorized to sell Payment Protection insurance by providing information about the product, but they could not advise or recommend the service. After some investigating, it was learned that Egg was instructing its employees to use hard sell tactics on individuals who refused the product when provided the info.

When an employee discussed the topic over the phone, their employees would still persist to sell the product and give their recommendations even when the customer expressed that they were not interested. Often times, this persuasion and persistence would lead to the client signing up for the product. This was obviously not allowed. In addition to advising the sale of the product to consumers when they weren’t supposed to, they were caught in situations where they were embellishing the benefits of the product.

There were apparently some cases where they said they could get it for free for a period of time and then cancel it when in reality they really couldn’t. There were even some cases reported where the Egg consumers’ credit cards were charged even though the client declined coverage.

You can only assume the salesperson was hoping the client would not notice. As with other banks in this situation, the Egg found the product so profitable and the employees were making commission and bonuses on it that it made it easy for them to want to do things they were not supposed to.

When money is involved, there is always temptation. There was even speculation that 40% of Egg sales calls were involved in unsuitable activity. The Governing bodies in the United Kingdom found all of this very inappropriate. This caused Egg to end telephone sales of credit card PPI in 2007. They now have to face the consequences for their wrong doing.

What Is Being Done?

The Egg PPI scandal has caused the company to take responsibility for the company’s and employees’ wrong doings. They took matters into their own hands and decided to send letters to all of their customers who held PPI with them. The letter informed the consumers that they had the product or held it at some point in time, then prompted its customers to review the product and evaluate if it is suitable for them. They became one of the first companies involved in the PPI scandal to actually contact their customers instead of having them come to them on their own. When their customers respond to their letters and file claims, Egg then does its due diligence to see if the product was mis sold or if they are responsible for wrong doing.

What Can You Do?

There are a couple things that should be done if you own a credit card with Egg and think you could be a victim of the Egg PPI scandal. The first thing is to look at your statement. In the statement it will show if you are (or were) being charged for this product. If you aren’t sure, as mentioned previously, you most likely would have received a letter indicating that you are a policy holder.

It is in your best interest to contact a PPI claims company, like Canary Claims, to help you file your claim. You can go to the company site,, and provide all of the information they require to start the process. It is typically a form of some nature that can be submitted online or via mail. PPI claim management companies charge a fee for their service. The fee is a percentage of the total amount won for your claim. Some companies have different structures in place where you have to pay up front fees, so buyer beware of this.

Egg and other banks in the United Kingdom got caught up in the selling of Payment Protection Insurance in a criminal way. It is now the consumers’ time to get back what they deserve. All of the processes and procedures are in place to help you do this. You just need to know what is available to help you. If you were an Egg customer or held/hold any loans or debt, it is in your best interest to do your research to see if you were a victim of this epidemic.