AmEx Loses Ground in a Travel Insurance Lawsuit

The California First District Court of Appeal has rejected American Express attempt to make millions of cardholders individually arbitrate claims concerning its fee-paid flight insurance programs. The Court concluded that AmEx waived its right to arbitration when it sought court approval of a class action settlement based upon misleading and false statements in court filings, to plaintiffs’ counsel and the cardholder class. The decision will force AmEx to go forward with a nationwide class action. AmEx’s motion for summary judgment was also recently rejected. The case was filed in September 2001 when William Hoffman filed suit alleging that AmEx was cheating their customers by systematically charging card members for travel insurance whether or not a trip was taken.

Details

Esprit Teams With IEXPay

NCR Corporation has signed a technology license agreement with
CIMA. This development will globalize CIMA’s Teller Assist Cash
Recycler (TACR), to be offered as a part of NCR’s branch portfolio.
TACR authenticates, counts, stores and makes available deposited
currency notes, which are then recycled back to customers. This allows
for an alternative to the manual counting process, which accounts for
an average of 34% of a bank tellers’ workday. CIMA S.p.A has been
serving banks since 1955 and has developed a variety of security
initiatives such as these. NCR develops business solutions for
improving customer relations.

Details

Hypercom’s CEO Steps-Down; Resigns from the Board

Hypercom this morning confirmed that William Keiper is stepping down as CEO of the Company and will be resigning as a member of the Board of Directors effective August 15th. Philippe Tartavull, President of Hypercom, has been promoted to COO effective immediately. Ian Marsh, EVP/Managing Director, Asia Pacific Region of the Western Union Company, has been appointed a member of the Board of Directors. The Company will conduct a search for a new CEO under the direction of Chairman Daniel Diethelm. Until the appointment of a new CEO, the Company will be directed by an interim Office of Daniel Diethelm, Philippe Tartavull, and CFO Thomas Liguori. Last month, Hypercom announced the outsourcing of its manufacturing and the consolidation of its assembly, software, repair and maintenance functions globally. Additionally, Hypercom announced a reconfiguration of the Company’s global sales and marketing functions to create a focused platform for revenue growth, streamline the organization, and further strengthen accountability for client relationships and anticipated market share growth globally. (CF Library 6/29/07)

Details

E-SMART

e-Smart Technologies has opened an Engineering Production Center in Seoul,
South Korea. The Center will produce manufacturing designs, oversight
control,
quality control, product delivery control, research and development for
the Asian
market. e-Smart Technologies supplies the Biometric Verification
Security System,
the Super Smart Card and related system technologies for Asia, Africa
and the
US. The smartcard has an on-card sensor and a full match on-card system for
biometric ID verification. These technologies provide governments,
public and
private institutions, healthcare providers and insurers, and companies with
protection.

Details

Congress Hears About Debit Card Overdrafts

A new survey has found that consumers paid about $17.5 billion in fees for $15.8 billion in abusive overdraft loans. In addition, the report finds that debit card overdrafts are now the single largest source of overdraft fees. The non-profit Center for Responsible Lending research also identified several unfair bank practices including the posting charges against a checking account quickly while intentionally delaying the posting of deposits; lowering account balances by re-ordering debits to clear higher-dollar items first; and failing to warn a customer during debit card point-of-sale or ATM transactions if they are about to overdraw their account so that they may cancel the transaction if they choose. Meanwhile, the American Bankers Association says overdraft protection is a valued service and penalty fees are avoidable for consumers who inadvertently overdraw their deposit accounts. The ABA says that banks have traditionally covered overdrafts, under certain circumstances, and that today overdraft protection practices are automated with specific criteria and have limits on the coverage. Additionally, current technology makes real-time notification of debit card overdrafts cost prohibitive.

Details

TransUnion Attacks the Authorized User Issue

TransUnion and top mortgage lending institutions have developed a customized approach that enables lenders to identify consumers who may have added authorized user accounts to artificially inflate their credit report and standing. This analytic approach was applied to nearly 2 million approved mortgage applicants in which TransUnion examined the extent authorized user accounts were being used to potentially “boost” credit scores. Taking a look at mortgage approvals during a three month period (July-September 2006), TransUnion recognized that approximately 50 percent of this loan pool was potentially impacted by this practice. Once these questionable authorized user trade lines have been identified by the customer, TransUnion’s Real Estate Division can initiate modifications to the TransUnion credit file that allows customers to obtain a re-scored TransUnion credit report.

Details

CO-OP Hires a VeriFone Relationship Manager

CO-OP Financial Services has hired Carol Berthelsen, formerly with VeriFone, as National Relationship Manager to focus on member relationships and expansion throughout Wisconsin, Illinois, Indiana, Kansas, Missouri and Kentucky. While with VeriFone as a relationship manager, she supported Midwest account relationships and sales activities. Additionally, Berthelsen worked for eFunds as a Client Services Specialist, where she was responsible for the coordination of installation activities for clients’ EFT environments.

Details

Western Alliance Enters the Affinity Card Market

San Diego-based Western Alliance Bancorporation has entered into the affinity credit card market through PartnersFirst Affinity Services. PartnersFirst, a division of its Torrey Pines Bank affiliate, offers credit card solutions incorporating the major network associations, world-class processing platforms, state of the art targeted marketing capabilities, and new partner/issuer economic structures.Western Alliance Bancorporation is the parent company of Bank of Nevada, First Independent Bank of Nevada, Alliance Bank of Arizona, Torrey Pines Bank, Alta Alliance Bank, Miller/Russell & Associates, Premier Trust, and PartnersFirst.

Details

Best Buy Renews its HSBC Card Contract

Best Buy has extended its strategic alliance with HSBC Finance Corporation’s card and retail services business managing Best Buy’s U.S. private label credit card and Reward Zone MasterCard programs. Best Buy’s relationship with HSBC began 15 years ago with the launch of the Best Buy-branded credit card for its U.S. customers. In 2006, the company introduced the Best Buy Reward Zone program MasterCard credit card, which rewards loyal Best Buy customers by providing automatic enrollment to the company’s popular Reward Zone program. The card enables consumers to accelerate the rate at which rewards are earned. Best Buy is a retailer of electronics, home-office products, entertainment software, appliances and related services through approximately 1,200 retail stores.

Details

Pay By Touch Signs Dorothy Lane Market

Independent grocery Dorothy Lane Market will adopt Pay By Touch’s biometric personalized marketing and payment services. The store’s loyalty program, Club DLM, will evolve to “Club DLM 2.U” where upgraded members can receive personalized offers from a kiosk as they enter the store using a biometric finger scan, or by swiping their Club DLM Card. Pay By Touch is a provider biometric authentication, personalized marketing and payment solutions.

Details