CompuCredit’s Q2 Card Outstandings Rise 13%

Atlanta-based sub-prime card specialist, CompuCredit, reported net income for the second quarter of $28 million, down 8% from the prior quarter and less than half of the $66.5 million profit posted in 2Q/05. However, last year’s second quarter included a $44 million gain on the sale of previously charged-off receivables. The adjusted charge-off rate was 8.% in the second quarter, as compared to 8.0% for the second quarter of 2005 and 7.1% in the previous quarter. The 60+ day delinquency rate was 11.5%, as compared to 8.3% for 2Q/05 and 10.6% in the prior quarter. Total managed receivables for the second quarter were $2,669,120,000 a 13% increase compared to one-year ago. As of June 30th, CompuCredit had 3,989,000 accounts, compared to 3,092,000 in 2Q/05. For complete details on CompuCredit’s second quarter performance, visit CardData ([www.carddata.com][1]).

COMPUCREDIT NET INCOME SNAPSHOT
2Q/05: $66.5 million
3Q/05: $52.7 million
4Q/05: $ 3.0 million
1Q/06: $30.7 million
2Q/06: $28.3 million
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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STASH VISA

Virgin Mobile and NetSpend have teamed to launch the “Stash Prepaid VISA Debit Card” for the youth market. The new card is linked to a Virgin Mobile phone, enabling users to earn free airtime as well as money transfers and wireless text alerts. The new card will be issued by Inter National Bank. Cardholders can load funds onto their “Stash” cards at NetSpend partner retail locations across the country and maintain up to a $10,000 balance. Virgin Mobile phones are available at more than 25,000 stores in the U.S., with “Top-Up” cards available at more than 100,000 locations nationwide. The Company has about four million customers. Virgin Mobile is a joint venture between Virgin Group and Sprint Nextel.

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HEATED SPENDING

New statistics show that the exceptional hot July affected spending patterns of British cardholders. Halifax Credit Cards found that the proportion of credit card expenditure on food and drink for home consumption increased by 7%, with expenditure on eating out
up by 3%. The proportion of credit card spending on home and garden improvement also rose by 5%. However, the level of credit card spending on holidays and travel reduced by 5%. Spending on household items using a credit card reduced as a proportion of overall credit card spending – by 15% and the amount spent on clothing was 7% less.

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AmEx Funds Endangered Historic Sites

The World Monuments Fund and American Express Company announced that seven endangered historic sites will receive funding through the new “American Express Partners in Preservation program.” The sites will receive a total of $700,000. The program was launched in June of this year. Over the past 10 years, American Express has contributed more than $10 million to help preserve 119 historic sites in 59 countries placed on the Watch list.

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TransUnion Acquires Qsent

TransUnion has signed a deal to acquire OR-based Qsent, a provider of contact and identity management services. With more than 60 percent of individual contact information changing each year and more than 25 million households moving annually, the need to have up-to-date, real-time contact information is vital for businesses that deal with high volumes of customer information. Qsent receives up to one million updates and more than 250,000 material changes to contact information per day, making it one of the industry’s most current, real-time data sources. TransUnion is a leading global information solutions company that customers trust as a business intelligence partner and commerce facilitator.

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RBS Expands Free ATMs to Poor Communities

RBS announced plans to install an initial 300 new
free to use cash machines in the poorest communities in the UK.
Cash machine usage has shot-up over the last three years with a 28%
increase in withdrawals and a 37% increase in balance inquiries.
As part of the new initiative, RBS has already installed three free to
use machines, two in Scotland and one in England. RBS currently has 6,300 free cash machines in the UK.

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Experian/Baker Hill Gets a New President

Experian has promoted Joe Kuntz as Baker Hill’s new president replacing Mark Hill, who is stepping down to pursue philanthropic and business development interests. Kuntz joined Baker Hill in 1993 as a sales executive, spending several years selling to the nation’s top 100 banks before being named vice president of sales in 2001. As a member of the company’s executive management team, he spearheaded the growth initiatives that resulted in the company tripling its annual revenue in the last five years. Baker Hill has been focused on the banking industry, delivering solutions that address business process needs and working as a trusted adviser to its banking clients. Baker Hill understands banking processes, knows how to implement technology to enable those processes and has a long history of client success from which to mine best practices.

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ATM Crime Prevention Campaign Launched

The Home Office has launched a second series of ads targeted at specific hotspots where it wants to encourage prevention of ATM crime. Cash machines in selected London boroughs and 10 cities, including
Liverpool, Coventry, Sheffield and Wolverhampton will display ads with
the message: “Keep it Safe, Keep it Hidden.” The campaign, which was planned and bought by Posterscope, is expected to deliver 1,140,000 one-to-ones, 4,560,000 impacts and generate approximately 285,000 cash machine receipts, which will also feature the campaign message.

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Encore Capital’s Q2 Collections Up 12%

San Diego-based debt management specialist, Encore Capital Group, reported that gross collections rose 12% to $79.2 million. Revenues from the debt purchasing business were $59.7 million, an 11% increase over 2Q/05. However, net income declined 7% to $7.5 million. During the second quarter, the Company purchased $594 million in face value debt for $21 million. ECG noted that more than 50% of its purchases during the quarter were non-credit card purchases. The Company also noted that pricing remains elevated for new portfolios. Encore generated $6.3 million in fee-based revenue during the second quarter, primarily through the Ascension Capital bankruptcy services business which it acquired in August. The Company recently retained Deutsche Bank Securities to assist in its effort to explore strategic alternatives. For complete details on Encore Capital’s second quarter results, visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

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MASTERCARD 2Q/06

MasterCard posted a 9.7% year-on-year increase in revenue for the second quarter to $846.5 million, driven by a 16.4% jump in gross dollar volume. However, due to its $400 million charitable contribution to the MasterCard Foundation following its recent IPO, the Company posted a net loss of more than $310 million for the quarter. Excluding the special items, MasterCard would have posted net income of $101 million for the quarter, compared to $120 million for 2Q/05. MasterCard’s gross dollar volume hit $485 billion and worldwide purchase volume rose 17.5% to $351 billion. Advertising and market development expenses jumped 32% versus the same time period in 2005 primarily due to the sponsorship of the “2006 FIFA World Cup.” General and administrative expenses rose 14% in 2Q/06, compared to one-year ago. As of June 30th, MasterCard’s customer banks issued 796 million MasterCard cards. For complete details on MasterCard’s second quarter performance, visit CardData (www.carddata.com).

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No Borders Cards Get Access to Convenia

No Borders has signed an agreement with Western Financial, owner of the “Convenia-Load” bank based load network to provide its stored value card customers with access to over 20,000 bank branch locations. Any No Borders customer will be able to load funds onto his or her noboCARD(TM) at any of the Convenia-Load participating bank branch locations simply by handing the desired amount of funds along with a special deposit slip to a bank teller. Booklets containing 25 of these special deposit slips are made available for a nominal fee by calling No Borders’ call centers. No Borders, Inc. is in the business of providing financial services and products that include a debit and stored value card platform through which a variety of financial and commercial services and products can be offered to residents of developing countries and to immigrants from those countries who reside in the United States and send money back home on a regular basis. Western Financial, LLC and its affiliate, Western ATM, Inc., have been providing financial services to consumers and businesses nationwide.

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Londoners Struggle with Credit Confidence

Credit confidence among Londoners has declined from 100 to 88 in the second quarter, despite overall credit confidence nationally increasing by six points to 106. The change is attributed to house price increases causing further affordability issues for those trying to get a foot on the property ladder and fears of possible future interest rate increases among households with large mortgages. The “Personal Credit Index” by CreditExpert, the online credit monitoring service from Experian, also found that 20% of adults in London say they are not confident of meeting all their household bills, including mortgages, in contrast to all other regions, where the rates of people who are not confident of paying their bills range from 6% in the West Midlands to 12% in the South East.

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