Internet bank Egg has withdrawn credit cards from at least three millionaires because it considers them to be "high risk", it has emerged.

The firm sent letters to 161,000 of its customers earlier this month informing them their credit cards would stop working in 35 days claiming the customers, who represent 7% of its two million cardholders, have a "higher than acceptable risk profile".

But MP for Edinburgh South, Nigel Griffiths, said he has received letters from a number of the people affected, including three millionaires.

He said one customer, who earned £1.1m last year at one of Britain's 50 biggest companies, even has £180,000 worth of shares in Egg's new owner - US banking giant Citigroup.

After meeting with Egg chief executive Ian Kerr, Mr Griffiths said he has been reassured that although Egg is withdrawing people's cards, it is not immediately calling in their debt or changing their terms and conditions.

He said the credit records of the affected cardholders will not be damaged as long as they keep up with their agreed repayments.

He said: "Egg informed me this exercise was a backward review of all cases, starting when the customer joined Egg, and ending in May last year well before the credit crunch brought about by the sub-prime problems in the USA.

"Egg stated categorically that people who clear their balances every month have not been singled out, since Egg receives fees for each transaction in any case."

An Egg spokeswoman said of the meeting: "Egg explained how its one-off, post-acquisition review of credit card customers had been conducted.

"We stressed that the review was based upon a large number of variables and studied the level of risk inherent in groups of customers, rather then every individual.

"So while some customers in that group may be up to date with their payments and have a good record with credit reference agencies and so on, the probability of them becoming a higher risk customer in the future is higher than we wish to accept."

She added that the "profitability" of individual customers was not a factor in its decision.

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