Kenneth A. Guenther, president & CEO of the Independent Community Bankers of America, announced that he would be retiring at the next ICBA convention in March 2004. Mr. Guenther joined the ICBA in 1979 and became its chief executive in 1982.
US Airways has inked a five and one-half year agreement with Bank of America to process the company’s credit card transactions. The contract becomes effective May 15, upon the termination of its current agreement with National Processing. Last month, the U.S. Bankruptcy Court of the Eastern District of Virginia for Alexandria gave US Airways 45 days to finalize an agreement with a new credit card processor. National Processing has originally given a March 31st deadline for US Airways to emerge from reorganization or face termination. In May 2002, National Processing announced its decision to discontinue processing debit and credit card transactions for all its airline clients. The Company said it will not renew airline contracts when their current terms expire. The contracts currently in effect have various expiration dates extending through November 2005. Bank of America is also the issuer of a co-branded VISA card with US Airways. (CF Library 5/30/02; 2/27/03; 3/19/03)
For the third year, Capital One Financial Corporation ranked as one of the best companies in America for training and developing its employees according to Training magazine’s listing of the Training Top 100.
CardSystems announced it had secured $23.6 million in a private placement arranged by William Blair & Company and led by new investor Camden Partners. Existing investors that Camden Partners will join are Equity Dynamics Inc., Principal Financial Group and Edgewater Private Equity Funds.
According to a recent study by Speer & Associates, Inc., an international research firm, Huntington’s Online Banking ranked number one against its peers, banks ranging from $25 to $50 billion in assets. Also, Huntington’s Online Banking ranked 26 out of 109 banks in the US, Latin America and Canada.
The U.S. Bankruptcy Court of the Eastern District of Virginia for Alexandria has given US Airways 45 days to finalize an agreement with a new credit card processor. The bankrupt airline says it has several banks interested in taking over the processing of its credit card transactions. The airline’s current processor, National Processing, has given it a March 31st deadline to emerge from reorganization or face termination. In May 2002, National Processing announced its decision to discontinue processing debit and credit card transactions for all its airline clients. The Company will honor its existing contractual obligations to the airlines it currently serves but does not intend to renew such contracts when their current terms expire. The contracts currently in effect have various expiration dates extending through November 2005. (CF Library 5/30/02; 2/27/03)
Fifth Third Bank announced Monday that all existing and new debit cardholders are now eligible to join the Fifth Third debit MasterCard card rewards program. In addition, the bank is launching the new “Fifth Third Cash Rewards MasterCard” credit card. Last year, Fifth Third launched a loyalty programs to reward both credit card and debit card use. Under the rewards program, debit cardholders earn one point for every $2 in purchases. Under the new credit card program cardholders earn one percent cash back for each $1 in purchases made, with a “Cash Rewards” check issued for every $5,000 in purchases made, up to $50,000 in purchases annually. Cardholders using their traditional Fifth Third select, gold or platinum credit MasterCard cards earn one point for each $1 in purchases. Using their traditional Fifth Third credit MasterCard card, and/or debit MasterCard card, participating cardholders can earn up to 60,000 points annually, with graduated redemption opportunities starting at 3,500 points.
An age discrimination lawsuit filed against Capital One has been expanded and has been joined by the AARP. The suit, which involves as many as 60 former employees, alleges that Capital One instituted a plan of forced separation that was unfair to employees age 40 and older. A motion filed late last week in U.S. District Court in Richmond, Virginia expanded the period covered in the suit from Oct. 1, 2001, to the present. The lawsuit formerly covered the period between Oct. 1, 2001, and Sept. 30, 2002. The lawsuit is seeking class action status. VA-based Butler, Williams, Pantele & Skilling has been joined by the AARP in representing the plaintiffs. Capital One reportedly said the firings were “performance related.” In February, Capital One was ranked in Fortune’s listing of the “100 Best Companies to Work for in America,” for the fourth year in a row. Capital One was also recognized as one of the top “25 Best Places to Work for Women.” The credit card issuer has more than 20,000 employees worldwide.
Consumer Action and Capital One announced that their joint Money Wi$e financial literacy partnership will grant $74,950 in stipends to 19 community-based nonprofit organizations in four states. The stipend program demonstrates the commitment of Money Wi$e to support local communities and their financial education curriculum.
Capital One confirmed yesterday that one of its senior executives received a notice from the SEC alleging personal trading in the company’s stock while in possession of material nonpublic information. The news drove Cap One’s stock down by nearly 11% before closing down 9% for the day at $28.25. Cap One said its EVP/CFO, David Willey, received the “Wells” notice two weeks ago and has since resigned. In the interim, Dave Lawson will assume the role of acting CFO. Capital One emphasized to the investment community that no other company executives, including its two top executives, Richard Fairbanks and Nigel Morris, have received a similar notice from the SEC. The potential civil charges that may be filed against Willey by the SEC apparently center around $5 million in trades that he and his wife made in May, 2002. Two months later, Capital One disclosed it had signed an informal MOU with bank regulators addressing its loss reserves and sub-prime credit card business. The July 16th MOU sent the company’ stock down by more than 40% and class action shareholder lawsuits quickly followed. One lawsuit alleged that Cap One insiders sold more than $8.2 million in Cap One common stock at artificially inflated prices. Cap One’s stock traded as high as $66 per share and as low as $24 over the past year. (CF Library 7/22/02)
TX-based Cardtronics has acquired the ATMs and related processing contract covering 938 Winn-Dixie stores in the southeastern U.S. from XtraCash ATM. Founded in 1989 and headquartered in Houston, Texas, Cardtronics is the nation’s largest independent owner/operator of ATMs. With a network of more than 10,000 locations in every major U.S. market, Cardtronics is one of the largest and fastest-growing ATM deployers in the U.S.
American Express and Bank One have launched promotions to reward consumers who charge tax payments to credit cards. Yesterday, American Express announced that “Delta SkyMiles Credit Card” users can earn double miles when paying federal income taxes now through April 15th, and one mile for every dollar spent when paying their state income taxes on the card. The AmEx “Starwood Preferred Guest Credit Card” also offers double “Starpoints” on the first $4,000 in federal income taxes paid on the card from March 15th through April 15th, and single “Starpoints” on every dollar thereafter. In addition, “Starwood Preferred Guest Card” users can earn one point for every eligible dollar spent when paying their state income taxes on the card. To-date, the District of Columbia and 22 states accept credit card payments. Last week, United Airlines and Bank One announced they are offering double miles for using the “United Mileage Plus VISA” card to pay federal and state personal income taxes from March 1 through April 30th. (CF Library 2/20/03)