Several national consumer groups have come together to form Americans for Fairness in Lending. The new organization is today launching a national campaign that includes print, radio and an interactive Web site. The campaign will coincide with the release of the documentary and book “Maxed Out,” by author/filmmaker James Scurlock. The campaign will call for concrete reforms in lending such as caps on interest rates and binding contract terms. AFFIL includes ACORN, Center for American Progress, Consumer Federation of America, Consumers Union, NAACP, National Consumer Law Center, National Council of La Raza, UAW, and U.S. PIRG, among others. Funding for the AFFIL campaign is provided by the Ford Foundation and Annie E. Casey Foundation.Details
Brazilian airline, GOL Linhas Aereas Inteligentes, has announced the
expansion of payment methods for tickets purchased online. Internet
customers are now able to pay using debit cards or bank transfers. This
service is valuable for customers with limited funds or no credit card.
For those purchasing tickets with a credit card, GOL allows customers to
parcel payments up to 12 months. These customers can pay for tickets up
to six months interest free, with a minimum monthly payment of R$45, or
up to twelve months with interest and a minimum monthly payment of R$10.
Also, for customers requiring longer payment terms, GOL offers the “Fly
Easy” (Voe Facil) program, allowing customers to pay for airline tickets
over a period of up to 36 months. To date, the program has enrolled
approximately 700,000 customers.
CO-OP Financial Services has named Mary Nyman as National Relationship Manager with initial responsibilities for the Pacific Northwest. Nyman more than 25 years experience in the EFT industry and will focus on growth and member retention in Washington State and Oregon and provide technical, product and client support for its growing member base. Oregon and Washington State have 136 credit unions. CO-OP Financial Services is the nation’s largest credit union service organization with nearly 2,000 credit union members, more than 25,000 surcharge-free ATMs (including 6,000 deposit-taking), 120 million-plus monthly transactions and 24 million cardholders.Details
FreeStar has announced that its subsidiary, Rahaxi Processing Oy, has
placed an order for 1,500 Hypercom “Optimum” POS Terminals
and pin-pads. Rahaxi Processing has sold Hypercom “Optimum” products since
the fall of 2006. The Finnish markets have a growing need for
international standard products and services Hypercom
offers. Hypercom solutions enable businesses in more than 100
countries to securely expand revenue and profit using global payment
technology. FreeStar Technology provides mission-critical
solutions to the financial industry worldwide.
VeriFone Holdings has installed its “PAYware Merchant” system to more than 600 Argos stores in the UK, enabling Argos to process 50 transactions per second, more than 100 million transactions every year. “PAYware Merchant” accepts all major cards and supports the latest fraud prevention initiatives, including EMV and 3D Secure for Internet payments and supports EMV Chip and PIN. VeriFone Holdings provides secure electronic payment solutions. Argos is a merchandise retailer with sales of over GBP 3.5 billion.Details
Sagem Orga has conducted a study revealing that 73% of German citizens
agreed that credit cards or EC cards are needed when traveling. Among
those over 60, 94% said that they use cashless payments when traveling
and they provide a “sense of security”. No more than 60% of young
people between 14 and 19 said that their card was indispensable. The
figure for those between 20 and 25 was 65%, for 26 to 30 was 72%, and
for 31 to 40 was 88%. However, to carry credit and EC cards is most
popular among people in the 41 to 50 age group: 98%. The Paderborn-based
smart card vendor Sagem Orga produced 38 percent more smart
cards last year than in 2005, reflecting the findings of the study.
NJ-based FAA Eastern Region Federal Credit Union has sold its $16 million credit card portfolio to TNB Card Services. The transaction adds more than 6,000 card accounts to TNB’s portfolio. TNB’s issuing program and partnership approach will use the credit card product as a method to fuel growth of FAA’s membership. The partnership will increase member retention and provide revenue sharing opportunities for FAA. FAA Eastern Region FCU, with $177 million in assets, serves more than 22,000 members through seven branches in New Jersey, New York, Virginia, and New Hampshire. TNB owns more than 100 credit union card portfolios, the largest ownership of credit union card accounts by a credit union owned entity.Details
Citi has announced the acquisition of Grupo Financiero Uno. This
will expand the company’s Latin America presence through incorporation
of 75 branches, and more than 100 kiosks and points of sale. Citi has
also named Edgardo del Rincon Gutierrez as CEO of Grupo Financiero Uno
in Central America. He was promoted from the GFU integration team
director and was previously the General Director of Credito Familiar for
Banamex. Citi is present in 24 countries of Latin America and Mexico and
operates more than 2,100 branches that offer financial services.
Throughout this market, services are provided to 13,000 corporate
customers, 17 million consumer banking customers and nine million
cardholders. On a global scale, Citi has some 200 million customer
accounts and does business in more than 100 countries.
TX-based eca$hier Systems announced its agreement with Consejo Empresarial Gasolinero Valle De Mexico, A.C. to deploy 2500 self-service multi-function financial kiosks in Mexico. The initial services provided by the kiosks are point-to-point money transfer services from the U.S. to Mexico, CEGA sponsored dispensing and reloading of a prepaid gasoline card, a Mexican Bank Branded prepaid debit card and ATM cash dispensing. Other functionalities soon to be added to the “eca$hier Financial Services Kiosk” are bill payments and collection, prepaid services, including long distance calling cards and cellular calling minutes, and other CEGA approved services.Details
It is estimated that retail organized crime costs Canadians $5 billion a
year. Credit card fraud in Canada resulted in losses of $201 million
to major credit cards companies, $70.4 million in debit card fraud, and 422,447
counterfeit bank notes were passed and seized in 2005. Furthermore,
container theft has been pegged at $20 billion worldwide. In response,
The Retail Council of Canada (RCC) will join Fraud Prevention Month.
Fraud Prevention Month has been created as a means of preventing
consumers across Canada from becoming victims of fraud by educating them
on the statistics and means of prevention. Throughout the month of March
the RCC will be educating consumers on these issues. The Council is a
not-for-profit organization representing more than 40,000 stores
of all retail formats.
Omaha-based Transactions Systems Architects last week settled a class action lawsuit for $24.5 million in the wake of disclosures that the Omaha software maker had improperly booked sales. The Plaintiffs alleged that the company and several executives and directors had prematurely booked the revenue incorrectly to make the company look healthier than it was or had ignored accounting errors. TSAI also last week disclosed it may have made errors on stock option grants issued between 1995 and 2002, and that it will need to restate previous results. In January, TSAI was notified by NASDAQ that its shares are subject to delisting because its annual report was late and in February the company received a second notice for noncompliance for not filing its quarterly report for the fourth quarter. The Company says it expects to file its Annual 10-K by the end of March and its 10-K and 10-Q for the fourth quarter about four weeks thereafter.Details
The nation’s three largest bank credit card issuers now represent 58% of the U.S. market, based on outstandings, compared to 40% five years ago. At the end of 2006 the nation’s three largest issuers, BofA, Chase and Citi held more than $100 billion each in card loans. According to the Federal Reserve, total revolving credit stands at approximately $876 billion. Bank credit card debt (excluding store and gas credit cards) at the end of the fourth quarter was about $750 billion or roughly 86% of total revolving credit, according to CardData ([www.carddata.com]).
Top 10 U.S. Card Issuers
(End of 2006)
1. BofA $168.4 billion
2. Chase $152.8 billion
3. Citi $111.6 billion
4. AmEx $ 63.5 billion
5. Cap One $ 53.6 billion
6. Discover $ 50.3 billion
7. HSBC $ 28.2 billion
8. WaMu $ 23.5 billion
9. Wells $ 12.8 billion
10. US Bank $ 11.3 billion
Source: CardData (www.carddata.com)