Chicago-based CashNetUSA is now offering free debit cards for access to payday cash advances. CashNetUSA provides customers with the easiest payday cash advance loans. Customers fill out the payday cash advance application and set up a member account with CashNetUSA. CashNetUSA will review customers’ payday cash advance loan applications and have an answer within 30 minutes. CashNetUSA ( http://www.CashNetUSA.com ) combines an easy user interface with top notch customer service in providing a system designed to make our payday cash advance customers feel like they are #1.
Capital One has approved the 2005 annual compensation of its Chairman, CEO and President, granting options to buy 566,000 common shares for next year. The stock options have an exercise price of $82.385. Richard Fairbank accepted the options in lieu of any salary, annual cash incentive, other cash or equity-based long-term incentives, and retirement plan contributions. Fairbank’s options will become exercisable in full in five years will expire in ten years. The stock options also become exercisable in full upon the death, disability or retirement of Mr. Fairbank, or a change in control of the Company.
SunTrust’s Fleet One has inked a deal for card acceptance with PA-based convenience store operator Sheetz. This relationship makes it possible for Fleet One customers to purchase fuel with Fleet One branded fuel cards at any of the more than 300 Sheetz convenience stores, in Pennsylvania, West Virginia, Ohio, Virginia, North Carolina and Maryland. Fleet One(TM) provides financial service solutions to companies with fleets of vehicles, and the merchants that serve them. Sheetz, Inc., based in Altoona, PA, is one of America’s fastest growing, family owned and operated convenience store chains with more than 300 locations throughout Pennsylvania, West Virginia, Maryland, Virginia, Ohio and North Carolina.
Jack Henry & Associates has purchased FL-based TWS Systems. The firm is a provider of image-based item processing solutions for credit unions, and a top provider of ATM deposit processing solutions for banks and credit unions. Jack Henry also announced its purchase of the SERsynergy division of VA-based SER Solutions, Inc. SERsynergy, the division’s flagship product, is an intelligent document management solution for financial institutions of all sizes. SERsynergy is enabling more than 1,600 domestic and international financial institutions to further automate their processes by capturing, archiving, and immediately retrieving images of all forms of paper-based and electronic documents.
Capital One has signed a definitive agreement to acquire eSmartloan from the National Bank of Kansas City for $155 million in cash. The transaction will enhance Capital One’s capabilities in the growing US home equity market. Capital One Financial Corporation (www.capitalone.com) is a bank holding company whose principal subsidiaries, Capital One Bank and Capital One, F.S.B., offer consumer lending products and Capital One Auto Finance, Inc., offers automobile and other motor vehicle financing products. eSmartloan (www.esmartloan.com) provides a diversified offering of full-service mortgage and home equity products through its knowledgeable sales staff and innovative website.
After six consecutive monthly increases, Capital One’s delinquency ratio headed south in November, falling 7 basis points. The declined was helped by a $1.8 billion boost in total managed loans in November, compared to a $455 million gain in October. However, charge-offs headed north climbing 25 basis points last month. For November, Cap One reported that managed charge-offs increased to 4.35%, compared to 4.10% in October, and 5.57% one-year ago. In June 2003, Cap One’s managed charge-off ratio stood at 6.20%. Delinquency decreased to 3.87% for November, compared to 3.94% for October, 3.90% for September, 3.80% in August, 3.77% in July, 3.76% in June, 3.73% in May, and 3.69% in April. Delinquency one-year ago stood at 4.46%. At the end of November, Capital One had $77.7 billion in global outstandings. At the end of the third quarter, Cap One had $46.1 billion in U.S. card loans, compared to $45.2 billion in the second quarter. For complete details on Capital One’s monthly metrics and 3Q/04 performance, visit CardData ([www.carddata.com]).
Capital One 2003-2004
Month Charge-offs Delinquency
Nov 03 5.57% 4.46%
Dec 03 5.10% 4.46%
Jan 04 5.00% 4.39%
Feb 04 4.75% 4.14%
Mar 04 4.74% 3.80%
Apr 04 4.70% 3.69%
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%
Source: CardData (www.carddata.com).
Capital One has partnered with Bruce Willis’ “National Foster Care Fund” to create a national scholarship program to benefit youth and children in foster care. In the United States today, more than half a million children are living in foster care. Capital One’s Fostering a Future scholarship program is designed to help youth and children in foster care reach their potential by empowering them with the educational skills and tools they need. Capital One Financial Corporation (http://www.capitalone.com ), a Fortune 500 company, is one of the largest providers of MasterCard and Visa credit cards in the world. The National Foster Care Fund (NFCF) was founded in 2004 by Bruce Willis and provides strategic outlets for celebrities, community-based organizations, private and public corporations, traditional foundations, and government agencies to pool resources to enhance and improve the lives of foster youth throughout the nation.
The CO-OP Network has added Douglas Allman, president and CEO of NASA FCU to its Board. Mr. Allman served as president and CEO of NASA FCU for 13 years. He helped it become the fifth largest credit union in Maryland with nearly 70,000 members and over $700 million in assets. Allman is currently Chairman of the Board for the Credit Union Mortgage Association as well as on the Supervisory Committee of EasCorp. He also holds board positions with the Goddard Alliance and CU Realty of Virginia, Maryland, and Washington D.C. He formerly served as board director of the STAR ATM network and as a member of numerous National Association of Federal Credit Union committees. CO-OP Network is the top credit union EFT network in the U.S. financial services industry with over 1,700 credit union members, 19,000 surcharge-free ATMs, 80 million monthly transactions, and 19 million cardholders.
Capital One officially announced its new “PrimeLock” card yesterday, a card offering a prime +0% APR with no annual fee. The new card’s interest rate always equals the prime lending rate, so consumers no longer have to check their rates and switch cards to obtain a competitive rate. The card offers savings by having no balance transfer or cash advance fees, no annual fee, and zero liability for fraudulent or unauthorized charges to the card. Consumers can also customize payment dates. Capital One is a Fortune 500 company and one of the largest providers of Visa and MasterCard credit cards in the world.
Navy Federal Credit Union announced it is now one of VISA USA’s top ten check card issuers. The milestone for the Navy FCU “VISA Sharechek Card” was achieved in less than six years. During second quarter, Navy Federal’s VISA check card sales/purchase volume increased 35% over the same period last year, with nearly 87 million transactions for $3.5 billion in sales/purchase volume, year-to-date. The credit union’s check card penetration is 83% of its active checking account base; 62% of the check cards in circulation are active. Navy says its members’ average card usage is 15 POS transactions per month, which is above the industry average of 11.9 monthly transactions per user. Navy FCU is the world’s largest credit union, with more than $22 billion in assets and over 2.4 million members worldwide.
Richard Fairbank, Chairman and CEO of Capital One Financial is exercising 3.6 million stock options, unloading 2.6 million shares from the options, leaving a balance of 9.4 million options. Mr. Fairbank has adopted the pre-arranged stock trading plan in order to exercise options to buy Capital One common stock and sell part of those shares to cover expenses associated with transactions as well as to diversify his financial assets. The plan indicates that the transactions will occur between February 1, 2005 and September 14, 2005. Capital One is a Fortune 500 company and one of the largest providers of MasterCard and Visa credit cards in the world.
As it continues to cut costs, Capital One confirmed plans to transition the majority of its production services operations work to First Data. Approximately 750 positions at sites in Federal Way, Washington and Richmond, Virginia will be eliminated, as a result. The Washington state facility will be closed by early March, eliminating 260 positions. The Richmond facility will drop from 720 positions to 230 jobs. First Data will extend employment offers to certain employees. Under terms of the contract, First Data will provide statement services, plastics personalization and remittance processing services to Capital One, supported by FDC’s Card Issuing Services and REMITCO business units.