FRAUDLOCK

With identity theft having increased 32% in 2009, as the fastest growing
white collar crime in the country and a fraudulent transaction taking
place every eight seconds, there were 59,000 victims in 2009. This costs
the UK economy GBP1.3billiion annually, making it difficult for victims
to gain credit. The total solution, guaranteeing protection against
identity theft, uses every technique and technology available. The
solution offers 12 key features with private investigators, black market
monitoring, lost or stolen card recovery service, free online credit
reports, credit monitoring, pro-active protection, online security
software and advice, free credit rating and analysis, reduced junk mail
and credit offers, a statement reminder service which spots undelivered
statements and an advice line.

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AUG VOL

Growth in debit card volume continued to pick up more momentum in August, surging by an annual rate of about 34%, as “Gross Rupee Volume” (GRV) hit 23.3 billion rupees. Meanwhile, credit card GRV is declining at an annual rate of 16%, dipping in August to 48.6 billion rupees. After peaking at 64.4 billion rupees in October, credit card GRV growth has been declining each month, in tandem with the global recession. Debit card GRV previously peaked in October at 19.6 billion rupees, but has rebounded to a record level in July. According to the Reserve Bank of India, the number of credit card transactions declined to 19.6 billion as the number of debit card transactions rose to 14.7 billion in August. At the end of August there were 21.9 million credit cards and 155.0 million debit cards in circulation.

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American Express Metrics Improve in September

American Express reports that delinquency for its U.S. credit card business remained steady in September, after rising for six straight months. Charge-offs declined for the fifth straight month, dropping 60 basis points during September. Assuming that delinquencies continue at current levels, and bankruptcies increase somewhat, AmEx believes that the managed net write-off rates for the third and fourth quarters will likely remain below 10%. U.S. Card delinquency (30+ days) held steady at 4.1% in September. Delinquency peaked at 5.3% in February. The charge-off ratio dropped from a peak of 10.1% in April to 10.0% for May, 9.9% for June, 9.2% in July, 9.0% for August to 8.4% for September. Managed card loans for the U.S. market at the end of September declined to $51.9 billion, from $53.0 billion in August and $52.9 billion in July. For the second quarter AmEx posted charge-offs on managed U.S. card loans of 10.0%, compared to 8.5% for 1Q/09 and 5.3% for 2Q/08. Delinquency (+30 days) dropped 70 basis points sequentially to 4.4% for the second quarter, but remain 110 basis points higher than one-year ago. For complete details on American Express’ second quarter and monthly performance, visit CardData (www.carddata.com).

American Express U.S. Card Metrics
Delinquency Charge-Offs
Jan 09: 5.1% 8.1%
Feb 09: 5.3% 8.6%
Mar 09: 5.1% 8.8%
Apr 09: 4.9% 10.1%
May 09: 4.7% 10.0%
Jun 09: 4.4% 9.9%
Jul 09: 4.2% 9.2%
Aug 09: 4.1% 9.0%
Sep 09: 4.1% 8.4%
Source: CardData (www.carddata.com)

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MONTISE MOBILE

Monitise global mobile money specialists has registered its one
millionth customer following a period of rapid growth in the uptake of
its industry-leading services. The Monitise “Mobile Money Manager”
platform handles 25 million transactions annually with debit card
activation, balance texting andalerts to help people avoid going
overdrawn. Research projects the mobile payments market will be worth
GBP365 billion by 2013 with 110 million users in Europe by 2014. Current
Montise partners include VocaLink, FIS, HSBC, Lloyds TSB, first direct,
Alliance & Leicester, Royal Bank of Scotland, NatWest, Ulster, Visa,
Vodafone, Orange, O2, T-Mobile and 3.

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BofA Credit Card Charge-Offs Near 13% in Q3

Bank of America global credit cards posted a $1.0 billion loss in the
third quarter compared to a $167 million loss for 3Q/08. Third quarter
global cards revenues declined slightly from the prior quarter to $7.3
billion, and compared to $7.8 billion for the third quarter of last
year. Third quarter charge-offs rose sharply to 12.90%, compared to
11.73% for 2Q/09 and 6.40% one-year ago. However, the managed 30+ day
delinquency ratio decreased to 7.35%, compared to 7.64% in the second
quarter and 5.89% for 3Q/08. The managed 90+ day delinquency ratio also
declined to 3.76%, compared to 4.21% in the second quarter and 2.88% for
3Q/08. The provision for credit losses increased to $7.0 billion from a
year earlier due to higher net losses driven by economic conditions and
higher bankruptcies. The increase in losses was partially offset by
reductions in the reserves as a result of improving delinquencies. This
compares with reserve additions in the year-ago quarter. For complete
details on Bank of America’s 3Q/09 performance, visit CardData
(www.carddata.com).

BOFA CREDIT CARD NET INCOME
(Global Cards; Excludes Business Cards)
3Q/08: (-$167 million)
4Q/08: (-$9 million)
1Q/09: (-$1874 million)
2Q/09: (-$1617 million)
3Q/09: (-$1036 million)
Source: CardData (www.carddata.com)

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ALTERNET

Alternet Systems mobile payment and electronic ticketing services have
been featured in a Greenfield partner Webcast to focus on technology and
outsourcing opportunities in China. The webcast concerned the Alternet
mobile payment software solutions in the Chinese market. The company
began business development last year in China with an initial focus on
e-ticketing and has since expanded its objectives in China to include an
e-commerce strategy. Alternet’s solutions focus on mobile payment and
m-commerce systems and solutions that tie together telecom operators,
financial institutions, and payees. Its success is due in large part to
the rapid mass penetration of mobile services around the world. The
mobile subscriber base has grown from just over 11 million in 1990 to
nearly 4 billion in 2008, quadrupling the number of bank accounts.

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Best Western Rewards Launches a Fall Promo

Best Western is offering Best Western Rewards members free $10 bonus gift cards with the purchase of a $100 Best Western Travel Card online now through December 31. Available through one of several retailers, the bonus gift cards can be used at Best Western, Best Buy, Macy’s, Starbucks, Walmart, AMC Entertainment, Olive Garden and Red Lobster. The Best Western Travel Card can be used to pay for accommodations and related incidentals at more than 4,000 Best Western hotels worldwide and is offered at Best Western member hotels.

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An Advanta ESOP Draws an Investigation

An Advanta Employee Savings Plan and Advanta Employee Stock Ownership Plan is under investigation on behalf of employees and former employees holding stock in the plans. In response to claims by those being represented, Stember Feinstein Doyle & Payne law firm is investigating the possible lawsuit. This is to determine if certain fiduciaries violated the Employee Retirement Income Security Act of 1974 (“ERISA”) by continuing to offer Advanta common stock as an investment option for participant contributions when it was imprudent to do so; and by failing to take action to sell Advanta stock or otherwise protect the Plans’ assets in light of the company’s business strategies and financial condition.

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Alliance Data Systems Charge-Offs Ease-Back

TX-based Alliance Data Systems Corporation loyalty and marketing
solutions has provided an update on its Private Label Credit segment. In
conjunction with the release of the Company’s Master Trust Monthly
Noteholder’s Statement, the Company is releasing similar metrics for the
overall total managed portfolio. The Master Trust data represents a
subset of the Company’s total managed portfolio. Derived from
transaction-rich data, Alliance Data provides loyalty and marketing
solutions to help clients create and enhance customer loyalty to build
consumer relations, employs approximately 7,000 associates at
approximately 50 locations worldwide.

SEP 30, 2009 1 Mo END 3 Mo END 9 Mo END
Y/Y RECEIVABLES $4.3BIL $4.3BIL $4.2BIL
PORT. GROWTH 14% 12% 10%
CHARGE OFFS 32,444 101,303 298,977
PCT OF C/O/REC 9.0% 9.4% 9.4%
SOURCE:ADS

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AUG DEBT

The recovery is still very sluggish as credit card gross dollar volume rose a mere 62 basis points and credit card outstandings edged up by only 18 basis points in August, compared to one-year ago. Despite setting a new high in June, credit card loan growth has been sluggish in 2009. Annual growth in July was 1.6%, June was 2.0%, compared to May at 2.1%, 2.3% for April and 4.4% for March. According to the Reserve Bank of Australia credit card balances posted at A$44.9 billion for August versus A$44.1 billion one-year ago. Credit card volume came in at A$18.9 billion, compared to A$19.2 billion in July and and A$17.8 billion for August 2008. Credit limits now stand at A$125.2 billion, compared to A$120.8 billion in August 2008. According to the RBA there are currently 14.4 million credit card and charge card accounts in Australia, compared to 14.0 million one-year ago.

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