NJ Class Action Lawsuit Hits LifeLock

Alleging deceptive marketing for its ID security solution, New Jersey consumers have filed a class action lawsuit against LifeLock with the New Jersey Superior Court in New Brunswick. Those filing the suit, all of whom reside in New Jersey’s Middlesex county, claim having fallen victim to consumer fraud thanks to LifeLock providing a ‘false sense of security’ through its $1 million service guarantee and are alleging the misleading ad campaign fails to warn of the impact the service has on user credit ratings with placement and constant renewal of fraud alerts. Moreover, the plaintiffs are seeking recovery of money lost to both LifeLock and to the fraudulent activity accusing LifeLock of overstating the available protection level. LifeLock was founded in 2005 and has nearly 900,000 subscribers across the U.S. whom are charged $10 per month for the Organization’s services.

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Citi Teams with Firethorn for Wireless Access

Citi Cards has partnered with Firethorn Holdings to give Citi cardholders real time access via wireless accounts. Through the Firethorn solution, qualified Citi credit cardmembers will be able to view important account information, including current balance, available credit limit, recent transaction history, rewards information and much more, all designed to help Citi credit cardmembers manage their accounts in an easy, convenient and safe manner. Firethorn Holdings integrates application-based banking, bill payment, remote and proximity payments and money transfers the “Firethorn Mobile Consumer Wallet”.

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RadioShack to Offer the Trumpet CashCard

Trumpet Mobile and RadioShack have announced the nationwide availability of Trumpet Mobile’s prepaid wireless services at more than 4,300 RadioShack locations. Trumpet Mobile enables subscribers to make Western Union money transfers within the U.S. and to Latin America and the Caribbean from their mobile phones. Trumpet Mobile leverages Affinity Mobile’s MADE platform to enable secure mobile financial services capabilities. This includes debit card (PIN) purchases, ATM withdrawals and reloading Trumpet Mobile airtime using money on the Trumpet CashCard. The Trumpet CashCard is issued by The Bancorp Bank, Member FDIC.

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TRM Revenue Falls 20% in the Fourth Quarter

OR-based ATM specialist TRM reported fourth quarter net sales of $7.9 million versus $9.7 million in 4Q/06. However, net income for the fourth quarter was $906,000 compared with a net loss of $15.2 million in the prior year period. In 2007, gross sales were $90.4 million and net sales were $33.7 million. Revenue performance reflects a consistent level of transactions per unit with fewer ATM units in the field. The average number of transacting ATMs was 10,253 during 2007 compared to an average of 12,378 during 2006. The decrease is primarily the result of attrition in ATM contracts acquired from eFunds in 2004. The Company expects the number of ATMs will continue to decrease in 2008 unless the Company executes on its previously announced desire to seek acquisition-led growth. During 2007, the Company added 1,000 new ATM units, including 57 in the fourth quarter of 2007. For complete details on TRM’s latest performance visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

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U.S. Credit Card Debt Edged Up 5% in 4Q/07

A new report from a major credit bureau has found that average credit card debt per bankcard user nationally rose 4.81% in 4Q/07 from the previous quarter to $1,694. The steepest increases in average credit card debt over the previous quarter occurred in Florida (6.84%), Nevada (5.98%) and California (5.95%). TransUnion said its analysis also found that credit card loan delinquency (90+ days past due) hit a national average of 1.36% in the fourth quarter, up 32% over the previous period. It was highest in Nevada at 1.95%, followed closely by Mississippi at 1.89%. The lowest level of bankcard user delinquency rates were found in Utah (0.87%), North Dakota (0.92%) and Montana (0.92%). TransUnion’s “Trend Data” is based on 27 million anonymous consumer records randomly sampled every quarter from TransUnion’s national consumer credit database.

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Motivano Payroll Card and Sage Software Team

Employee benefit provider Motivano has partnered with Sage Software, to provide Sage with Motivano’s “SmartCash” payroll debit card technology. Sage will now be able to offer its corporate clients a Visa Debit Payroll card, formally known as the Sage Payroll PayCard. Motivano’s SmartCash Visa Payroll Card is a safe and secure payroll solution designed to bring convenience and savings to both employers and employees. SmartCash and the Sage Payroll PayCard are Visa debit cards, which are backed by Visa’s Zero Liability policy. This policy provides Visa cardholders with 100 percent protection against fraud.

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OPC Introduces Tax Payment Management Services

Official Payments has introduced “My Account” and “AutoPay” for taxpayers who need to make recurring tax payments. My Account allows users to schedule and manage automatic payments, set payment reminders, make payments using pre-filled contact information, view transaction history, and offer feedback regarding services. Official Payments charges a convenience fee for some services. Citizens and businesses using credit or debit cards with bonus rewards programs may, depending on their card’s program, earn reward points, airline frequent flyer miles or cash back for paying their taxes and fees.

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Pipeline Data EBITDA Rises 70% in 2007

MA-based Pipeline Data reports a 70% rise in 2007 EBITDA to $5.8 million. Furthermore, the company reported a 2007 revenue increase of $8.1 million to $49.9 million while gross profit was up 19% to $17.7 million for the year. Net cash was up 52.6% to $3.1 million with a loss of $0.04 per share for the year. Pipeline Data provides credit card processing services for wireless mobile payments, e-commerce solutions and retail payments serving over 40,000 merchant customers. For complete details on Pipeline Data’s latest performance visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

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BARCLAYS & GOLDFISH

Initiated February 7th, Discover has completed the sale of the
Goldfish credit card and its 1.7 million Goldfish and affinity card
accounts to Barclays in the amount of $70 million cash. The portfolio in
question has $3.9 billion in receivables, includes the Goldfish brand and
its operating facilities. Barclays reported an after-tax non-cash
impairment charge of $279 million in 4Q07 and recorded a loss from
discontinued operations of Goldfish of $158 million in 1H08, including a
loss from net assets to fair value of $172 million and net income from
operations of $14 million.

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Discover Names a New Chief Accounting Officer

Discover Financial Services has appointed Kevin Killips, previously with LaSalle Bank, as controller and chief accounting officer. Killips will oversee all aspects of Discover Financial Services’ accounting function. Killips worked for nearly ten years most recently serving as EVP, North American chief accounting officer and corporate controller at LaSalle Bank . There he was responsible for the comprehensive accounting function of ABN AMRO’s North American operations including reporting, policy, tax, financial control, budgeting, financial systems and project management. Prior to his work with LaSalle, Killips was the director of Internal Audit, and then vice president-Finance for leasing operations at Transamerica Corporation. Killips is a certified public accountant with a bachelor’s degree from Dominican University.

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New LifeLock Lawsuit Claims Fraud

An Arizona consumer has filed a lawsuit claiming fraud against ID protection service LifeLock. The lawsuit alleges that the company defrauds customers by offering services it cannot legally perform, and by touting a $1 million guarantee that the suit alleges is wildly misleading. According to the suit, LifeLock’s “proven solution” consists of illegally placing and renewing fraud alerts under consumers’ names with credit bureaus which is banned under FCRA. According to the complaint, one of LifeLock’s founders, Robert Maynard, has been investigated and prosecuted by the FTC and the State of Arizona for fraud in connection with his previous “credit repair” enterprise.

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