The sub-prime fallout continues to takes its toll on Metris Companies/Direct Merchants Bank. The issuer reported a net loss for the third quarter of $1.3 million, however, the loss is well below its second quarter loss of $36.4 million. The managed credit card loan portfolio now stands at $11.6 billion, a decrease of $118 million during the quarter. During the third quarter, Metris sold $47 million of its subsidiary Direct Merchants Bank’s receivables. These accounts were revoked and 2-cycle plus delinquent as of August 31. In the third quarter, Metris added more than 170,000 new credit card accounts, resulting in 3.6 million active accounts at September 30, 2002. Managed credit card fees, interchange and other credit card income decreased 12% to $146.1 million for the third quarter of 2002 from $165.7 million in the third quarter of 2001. Credit card charge volume decreased 17% to $2.2 billion in the third quarter of 2002, compared to $2.6 billion in the third quarter of 2001. For the first nine months of 2002, credit card charge volume was $6.4 billion, a 10 percent decrease from the same period in 2001. The managed net charge-off rate was 15.1% for the third quarter of 2002, compared to 15.0% for the prior quarter and 10.7% for the third quarter of 2001. The managed delinquency rate was 10.8% for the third quarter, compared to 10.2% at June 30th, and 8.9% one year ago. For complete details on Metris’ third quarter performance visit CardData ([www.carddata.com]).