Mississippi-based Britton & Koontz Bank has signed a five-year contract with Fifth Third Processing Solutions for EFT services, including gateway access, debit card processing and ATM driving. Britton & Koontz Bank has $376 million in assets. Fifth Third Bank Processing Solutions processes over 12 billion ATM and POS transactions per year for more than 1,350 financial institutions and over 135,000 retail locations worldwide.
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New Jersey-based Commerce Bank is expanding in the Washington, DC metro area with free ATM service at 170 CVS pharmacy stores. Commerce is one of the only banks in the country to offer customers no-fee ATM service. Commerce also announced that it will open two metro D.C. stores. Commerce Bancorp has 330 locations and $32 billion in assets.
Massachusettes-based Viisage reported first quarter revenue of $16.8 million, a 37% increase over 1Q/04. The net loss for the first quarter of 2005 was $1.6 million, or $0.03 per fully diluted share, compared to a net loss of $1.6 million, or $0.05 per fully diluted share, in the first quarter of 2004. The first quarter report and annual report for 2004, had been delayed in order to complete a review of pending litigation and to assess the effect, if any, on the Company’s financial statements for the year ended December 31, 2004. Viisage provides advanced technology identity solutions for governments, law enforcement agencies and businesses.
Transport for London’s “PRESTIGE” has won two more major awards.
The integrated smart card ticketing system was delivered by the TranSys
consortium, whose principal partners are Cubic and EDS. A panel of
judges including the National Audit Office, Department of Transport,
PricewaterhouseCoopers and Barclays Bank selected “PRESTIGE” as
the best Private Finance Initiative in two categories: “Best
Operational Transport Project” and the “Grand Prix as the Best
Operational Project.” The system consists of over 4,000
ticket selling facilities, 16,000 ticket validators, a network of over
300 sub-computers tied into a Central Computer System and various other
Nashville-based Fleet One has renewed contracts with Thorntons, Love’s Travel Stops & Country Stores, and MAPCO Express. Fleet One agreed to 3-year contract extensions with Louisville, Kentucky- based Thorntons Inc. and Oklahoma City based-Love’s Travel Stops & Country Stores and an 18-month extension with Tennessee-based MAPCO Express. Fleet One, an affiliate of SunTrust Banks, Inc., provides private label fuel card programs, electronic payment authorizations and billing.
One week before a West Virginia trial over its credit card and collection practices, Cross Country Bank and Applied Card Systems agreed to settle with the State’s Attorney General. The $1.5 million settlement will be used to fund consumer credit education and conflict resolution programs. While both firms did not acknowledge that any of the lawsuit’s claims were valid, the settlement prohibits Cross Country and Applied from debiting customers’ bank accounts without their authorization or to engage in aggressive collection tactics. The West Virginia lawsuit was filed in March 2004 and charged that Cross Country 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. The lawsuit alleged that Applied called consumers during the night, used obscene language and threatened cardholders with arrest to collect on a credit card account. Six other lawsuits are pending with the state Attorneys General of Pennsylvania, New York, Texas, Minnesota, Wisconsin and New Hampshire. (CF Library 6/4/04; 6/25/04)
Indiana-based CMC has hired Kevin Spear, formerly with PNC, Infistar and UPS Capital, as EVP of Strategic Planning and Business Development. Spear’s industry experience spans more than 25 years. CMC is a leading provider of superior quality servicing solutions and product engineering to financial institutions, commercial credit companies, and retail companies for their credit and debit account products, merchant transaction services and private label programs.
Capital One’s six week “Stash Your Cash” financial education program in Washington, DC has ended with an auction of several giant piggy banks to benefit D.C. Public Schools. The Stash Your Cash program, based on a curriculum developed by the Dallas Federal Reserve Bank, introduced local middle school-aged students to basic money management skills, with an emphasis on saving for the future. The program reached more than 4,000 students. Capital One’s subsidiaries collectively had 49.1 million accounts and $81.6 billion in managed loans outstanding as of March 31, 2005.
After a steady four-month decline Capital One’s managed delinquency ratio inched up by 6 basis points last month. For May, Cap One also reported that managed charge-offs decreased to 4.10% compared to 4.22% in the prior month and 4.40% one-year ago. In June 2003, Cap One’s managed charge-off ratio stood at 6.20%. Delinquency increased to 3.43% in May compared to 3.37% for April, 3.45% for March and 3.84% in January. Delinquency one-year ago stood at 3.73%. At the end of May, Capital One had $82.4 billion in global outstandings, a slight decline from the prior month. At the end of the first quarter, U.S. card outstandings of $46.6 billion were up 3%, compared to one-year ago. For complete details on Capital One’s monthly metrics and 1Q/05 performance, visit CardData ([www.carddata.com]).
Month Charge-offs Delinquency
May 04 4.40% 3.73%
Jun 04 4.17% 3.76%
Jul 04 4.10% 3.77%
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%
Source: CardData (www.carddata.com)
Capital One is consolidating its direct-to-consumer auto lending business by relocating its Internet auto finance operations currently based in San Diego to Plano, TX. The changes will result in the elimination of approximately 290 internal positions and the closing of the San Diego location by the end of the first quarter of 2006. However, approximately 200 new positions will be available in Plano. The move is intended to leverage the scale of the existing operations and increase efficiency. Capital One and subsidiaries collectively had 49.1 million accounts and $81.6 billion in managed loans outstanding as of March 31, 2005.
ExxonMobil has launched its “Upromise Summer Promotion,” wherein all Upromise members who make a gasoline purchase at an Exxon or Mobil station with a credit or debit card registered with Upromise will receive one entry into the contest which will award $250 to 500 winners this summer. ExxonMobil has been affiliated with Upromise since 2001 and has contributed more than $14 million toward college savings for Upromise members. Upromise is a non-government service helping families save for college while making everyday purchases.