Official Payments has been authorized by the City of Virginia Beach to process electronic credit and debit card payments for personal property tax, real estate property tax, utilities and parking ticket obligations. Residents may now make any of these payments online or by phone. OPC charges citizens a convenience fee for the services, however, citizens using credit or debit cards with bonus rewards programs may earn reward points. Official Payments provides electronic payment services for the Internal Revenue Service, 25 states, the District of Columbia and more than 1,800 local government clients nationwide.
Capital One’s managed delinquency ratio increased for the fourth consecutive month while charge-offs retreated last month. For August, Cap One reported that managed charge-offs dipped by 25 basis points, while delinquency edged upward by 3 basis points. Delinquency increased to 3.69% in August, compared to 3.66% for July, 3.49% for June, 3.43% for May and 3.84% in January. Delinquency one-year ago stood at 3.80%. Charge-offs came in at 3.77% for August, compared to 4.02% in July, 3.96% in June and 3.87% one-year ago. In June 2003, Cap One’s managed charge-off ratio stood at 6.20%. At the end of June, Capital One had $83.0 billion in global outstandings. U.S. card outstandings of $46.4 billion were up 2.7%, compared to one-year ago. For complete details on Capital One’s monthly metrics and 2Q/05 performance, visit CardData ([www.carddata.com]).
Month Charge-offs Delinquency
Aug 04 3.87% 3.80%
Sep 04 4.18% 3.90%
Oct 04 4.10% 3.94%
Nov 04 4.35% 3.87%
Dec 04 4.63% 3.92%
Jan 05 4.19% 3.84%
Feb 05 3.96% 3.65%
Mar 05 4.35% 3.45%
Apr 05 4.22% 3.37%
May 05 4.10% 3.43%
Jun 05 3.96% 3.49%
Jul 05 4.02% 3.66%
Aug 05 3.77% 3.69%
Source: CardData (www.carddata.com)
Metris Companies/Direct Merchants Credit Card Bank and Modell’s Sporting Goods launched a cobranded MasterCard that awards one point for every dollar spent at Modell’s and one point for every $5 spent elsewhere, which are automatically redeemed at 400 points for a $20 Modell’s “Award Certificate”. Metris Companies Inc.is one of the largest bankcard issuers in the United States. Modell’s Sporting Goods is America’s largest and oldest family-owned and operated sporting goods, footwear and apparel retailer with 127 stores.
As expected, the Katrina hurricane disaster has impacted the Capital One and Hibernia merger. The companies this morning announced, after intensive due diligence, they have renegotiated the purchase price down to approximately $5.0 billion. This represents a reduction in economic value of 9% relative to the previous terms. The companies now expect the transaction will close in the fourth quarter. More than 100 of Hibernia’s 321 locations are in areas impacted by Katrina. So far, 47 of these branches have been reopened, but 21 appear to have sustained significant damage. These 21 branches account for approximately 5% of Hibernia’s deposits. (CF Library 3/7/05)
Capital One has named Pierre Leroy, former Deere & Company senior executive and one of the “Seventy-five Most Powerful Blacks in Corporate America”, to its Board. Leroy most recently served as President of the Worldwide Construction & Forestry Division and the Worldwide Parts Division for Deere & Company, electing to retire after 29 years of service, including 20 years as an officer of the company. Capital One’s subsidiaries collectively had 48.9 million accounts and $83.0 billion in managed loans outstanding as of June 30, 2005.
A new poll has found that that two-thirds of Americans don’t understand the numeric value associated with a good credit score. The study, conducted by Braun Research for Capital One and Consumer Action, revealed that 54% of those surveyed wrongly stated that age is a factor considered in determining credit scores. Also, 23% of consumers have never reviewed their credit report. The research determined that older Americans have a poorer understanding of credit scores compared to younger Americans. Less than 14% of 70+ Americans correctly identified 700 as a “good” score. Capital One and Consumer Action have jointly created the “MoneyWi$e” financial education program.
Capital One and Hibernia have mutually agreed to reschedule their merger as a result of the devastation and disruption caused by Hurricane Katrina until September 7th. Capital One Financial Corporation and subsidiaries collectively had 48.9 million accounts and $83.0 billion in managed loans outstanding. Hibernia has $22.1 billion in assets and 321 locations in 34 Louisiana parishes and 36 Texas counties.
. VA-based Longwood University is participating in Capital One’s college financial education program, MoneyWi$e University.
About 33% of Hibernia shareholders have elected to receive cash while 54% elected to receive Capital One common stock in the pending acquisition of Hibernia by Capital One. The maximum amount of cash that will be paid in the merger is fixed at $2,382,141,311. Capital One and Hibernia expect to complete the merger on September 1, 2005. Capital One and its subsidiaries collectively had 48.9 million accounts and $83.0 billion in managed loans outstanding as of June 30, 2005. Hibernia has $22.1 billion in assets and 321 locations in 34 Louisiana parishes and 36 Texas counties.
Charles Drucker, president, Fifth Third Bank Processing Solutions, has been elected to MasterCard International’s U.S. Region Board. Drucker began his career with Fifth Third in 2004, and is responsible for the strategy, sales, product development, relationship management and administration for the Fifth Third Bank Processing Solutions division’s three business lines: Merchant Services; Financial Institution Services, which includes EFT Processing and Correspondent Banking; and Card Products. Fifth Third Bank Processing Solutions processes over 12 billion ATM and POS transactions per year for more than 1,350 financial institutions. Fifth Third Bancorp is a diversified financial services company with $102.7 billion in assets.
San Diego-based Midland Credit Management has reached a settlement with the West Virgina Attorney General in regard to charge-offs it purchased from Cross Country Bank. Midland agreed to cancel more than $3.5 million in credit card debt allegedly owed by approximately 3,500 West Virginia consumers. Midland also agreed to close all of the accounts with a zero balance and notify credit bureaus to delete all references to the account from consumers’ credit records. In June, the West Virgina Attorney General reached a settlement with sub-prime issuer Cross Country Bank and Applied Card Systems in a lawsuit regarding CCB’s business practices. CCB and Applied agreed to pay $1.5 million into a consumer credit education fund and conflict resolution programs. The 2004 lawsuit charged that CCB and applied engaged in deceptive marketing of credit cards, offering low credit limits and charging exorbitant hidden fees to consumers who already had bad credit. The suit contends that Applied Card Systems used a wide range of abusive collection practices to coerce consumers into making payments if they contested the fees or defaulted on the account. (CF Library 6/4/04; 6/25/04; 6/22/05)
TransLink has begun the first phase of the rollout of a new integrated
ticketing and revenue management system supplied by Cubic Transportation
Systems. The first stage of the pilot consists of five Queensland Rail
stations and one private bus operator conducting field testing for the
pilot. During the first stage, a select focus group will use the system,
employing contactless smart cards. Current paper tickets will also be
available to the general public. During the second stage of the pilot,
TransLink plans to issue more smart cards to a wider demographic
selection of volunteers to use the system and provide feedback. Cubic
was awarded a comprehensive contract in 2003 to design, build, operate
and maintain what will be Queensland’s first smart card-based integrated
ticketing system and regional services for public transport.