CHICAGO, and COSTA MESA, Calif., Feb 13, 2008 /PRNewswire via COMTEX/ -- Accertify, a provider of leading-edge credit card fraud prevention solutions to online merchants, and Experian(R: 59.68, +0.96, +1.63%), a global information services company, today announced a strategic partnership to help e-commerce sites process orders quickly while reducing charge-backs and the total cost of fraud.
Under the partnership, Accertify will offer Experian's Credit Card Verification, an innovative credit card authentication tool, to Interceptas(TM: 110.22, -1.93, -1.72%) customers. Credit Card Verification provides robust consumer authentication and confirms the presence of a specific credit card account on a consumer's credit report. Interceptas(TM: 110.22, -1.93, -1.72%) is the first integrated platform designed from the merchant's perspective for combating card-not-present fraud, enabling the complete fraud prevention process to be managed with one comprehensive and highly flexible product.
Credit Card Verification authenticates the user's link to the card to avoid transaction processing delays and potential fraud. Credit Card Verification is the only tool that verifies a complete credit card number against a purchaser's full name and address.
"Annual Credit Reports Verification uses Experian's powerful File One(SM: 35.56, -0.50, -1.38%) credit database, which contains information on more than 215 million credit-active consumers," said Gary Kearns, president, Experian's Decision Analytics. "The ability to rapidly authenticate the purchaser's link to the credit card he or she is using will help reduce fraud significantly and facilitate increased sales, profits and business growth."
"We know that fraudsters work very hard to obtain legitimate credit card credentials," said Jeff Liesendahl, chief executive officer, Accertify. "Often merchants have no choice but to call the card-issuing bank to confirm that a card hasn't been compromised. This process is very time-consuming and requires significant manual effort.
"By integrating Experian's Credit Card Verification tool, Interceptas(TM: 110.22, -1.93, -1.72%) helps merchants eliminate the need to contact banks and cut the manual effort needed to combat fraud," Liesendahl added. "Interceptas(TM: 110.22, -1.93, -1.72%) is designed to lower merchants' total cost of fraud by driving orders to resolution as quickly as possible through automation and the best available antifraud tools."
About Accertify, LLC
Accertify is the first company to focus on developing fraud prevention tools and strategies from the perspective of merchants that accept card-not-present transactions. That focus led to the development of Interceptas(TM: 110.22, -1.93, -1.72%), which applies state-of-the-art automation to every step in the merchant's process of managing credit card reports fraud exposure. Accertify exemplifies a constant commitment to maintaining the best in fraud prevention strategies, and its management team combines complementary skills from fraud management, business software development, accounting and legal to assure that its customers receive the most comprehensive, cost-effective solution to credit card fraud available.
About Experian
Experian is a global leader in providing information, analytical and marketing services to organizations and consumers to help manage the risk and reward of commercial and financial decisions. Combining its unique information tools and deep understanding of individuals, markets and economies, Experian partners with organizations around the world to establish and strengthen customer relationships and provide their businesses with competitive advantage. For consumers, Experian delivers critical information that enables them to make financial and purchasing decisions with greater control and confidence. Clients include organizations from financial services, retail and catalog, telecommunications, utilities, media, insurance, automotive, leisure, e-commerce, manufacturing, property and government sectors.
Experian Group Limited is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. It has corporate headquarters in Dublin, Ireland, and operational headquarters in Costa Mesa, Calif., and Nottingham, UK. Experian employs approximately 15,500 people in 36 countries worldwide, supporting clients in more than 65 countries. Annual sales are in excess of $3.8 billion.
For more information, visit the Group's Web site on http://www.experiangroup.com.
Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein may be the trademarks of their respective owners.
news source : http://www.foxbusiness.com/article/
Wednesday, February 13, 2008
Tuesday, February 12, 2008
A very wide loophole for unsolicited cards
Vivikka Molldrem of Edgewater was perturbed to find a Wal-Mart Discover Card in her name sitting in her home mailbox last month. All she had to do to activate the $1,000 credit limit card was call a toll-free number.
"I have never shopped at Wal-Mart, have never owned a Discover Card, and have never requested a Discover Card," Molldrem said. "I get credit card offers multiple times a week, and I usually just throw them in the trash without reviewing them carefully. This one looked like a typical credit card offer, but my husband opened it up while I was out of town and to his shock, it contained a fully functional card."
Tossing a fully functional card out could expose the couple, Molldrem said, to anyone picking through the trash and activating the card.
Wondering how the company could get her name and why it would expose people to security risks, Molldrem said the couple called the customer service number given on the back of the card. Molldrem said she was told that Wal-Mart Stores Inc. purchased the now-long-gone Montgomery Ward's store card list and issued the new Discover cards to people on that list.
Molldrem did own a Ward card years ago, but she has no interest in owning a Wal-Mart Discover Card, she said.
Is it legal for a company to send you an unsolicited credit card in the mail, she wondered? And who would she call to lodge a complaint?
The A:
There's no simple answer for either question.
First, I called Wal-Mart to inquire about the Discover cards. But a Wal-Mart spokesman said I should call Discover. When I called up Leslie Beyer, a spokesman for the Discover Network, she said I should call GE Money. Turns out, the Wal-Mart Discover Card is issued by GE Money, which used to be GE Consumer Finances.
Before I got a chance to speak with GE Money, I discovered that in 2001 a Wal-Mart spokesman had said Wal-Mart credit cards were being sent to customers who previously held accounts with Montgomery Ward. At the time, the spokesman said the effort was "an attempt to renew" the old Ward cards.
A GE Money spokesman said it was unlikely the company would send a card to a customer who did not request it, but regardless of whether GE Money, Wal-Mart or Discover was responsible, Molldrem has some rights.
The federal Truth in Lending Act does prohibit companies from sending cards to consumers without their request, but (and this is a big but) there are loopholes.
"What can happen is when a company buys another company, they can decide to switch credit card providers or they can renew a credit card list," said Linda Sherry, director of national priorities for advocacy group Consumer Action. "They're never supposed to send you a card you didn't request, but they can replace your card with another card."
As an example,
"It appears to be legal," Sherry said. "But the bottom line is, it's not a good practice. And it certainly doesn't make a company look good. What happens when you issue these cards to an old address? People move."
Chi Chi Wu, staff attorney with the Boston-based National Consumer Law Center, called the practice "questionable."
"Creditors have exploited the loophole to do more and more things like flipping store cards to general purpose cards. The original intent of the law was to prevent these very situations," Wu said. "They say they 'renewed' cards, but no one was using these cards at the time. I'd definitely say it's questionable."
Molldrem should check her credit report, Sherry said, because even though the card wasn't activated, that does not mean the account is closed.
To reduce the amount of unsolicited credit card reports offers you receive in the mail, contact the three major credit bureaus by calling 888-567-8688 to opt out of the preapproved credit lists they sell to companies.
You can also complain to any of the federal regulators that oversee banks and finance companies. In this particular case, GE Money is regulated by the Office of Thrift Supervision, which is a part of the Department of the Treasury. You should also write to the Federal Reserve, Wu said.
news source : http://www.baltimoresun.com/business/
Monday, February 11, 2008
Consumers more wary of credit debt
RISING interest rates are making consumers wary about taking on new debt, with a new report showing applications for credit cards and personal loans slipping for the first time in four years.
The Veda Advantage Consumer Credit Demand Index for the second half of 2007 showed the number of consumer credit applications - for credit cards and personal loans - dipped by 2 per cent from a year earlier to 3.19 million.That is almost 70,000 fewer than in the same period of 2006.
The slowdown in applications corresponds to a significant 35.5 per cent year-on-year increase in the number of payment defaults across 2007, it said.
"Mounting pressure of interest rate hikes and a volatile global economy brought on by America's credit crunch may have caused some Australian consumers to be cautious about taking on new credit card and personal loan debt in 2007,'' Veda's General Manager of Information Services and Solutions Erica Hughes said.
The Consumer Credit Demand Index is an indicator of consumer behaviour in the market and measures the number of individual credit applications, but does not record the dollar value of credit approvals.
As such, it is a measure of consumer sentiment rather than a measure of the volume or value of the overall credit market.
Personal loan applications edged up just 0.3 per cent in the six months to December 2007, a sharp slowdown from growth of 8.8 per cent in the same period of 2006.
The October-December quarter of 2007 saw a 0.8 per cent decrease in personal loan applications, with almost 6000 fewer inquiries than the year-before level.
Credit card inquiries recorded a three-year low in the six months to December 2007. Applications fell to 1.77 million, down 3.8 per cent or more than 70,000 from the same period in 2006.
The last three months of 2007, however, saw a gain of 0.6 per cent from the previous-year level, with almost 915,000 credit card inquiries.
Personal loan inquiries in the second half of 2007 saw a 5.8 per cent decrease compared with the first half, while credit cards grew by only 1.8 per cent, with approximately 31,000 more inquiries than in the January-June period.
"Both credit card and personal loan applications have slowed considerably in the last year when you look at the last three years of October-to-December data,'' Ms Hughes said.
"The year-on-year changes are significant, which could also indicate a greater saturation in the market and an adjustment to strong growth in 2005.''
In October-December 2005, the growth rates for credit cards and personal loans were 14.9 per cent and 6.7 per cent, respectively, compared with the 2007 final-quarter figures of 0.6 per cent growth and a 0.8 per cent decline.
news source : http://www.news.com.au/
Thursday, February 7, 2008
10 Free Ways to Boost Your Financial Power
Whipping your finances into shape doesn't have to come at a price.
The news lately has been focusing on the money that people are likely to get back as a tax refund from the government as part of the economic stimulus plan.
But plenty of other freebies can spruce up your personal finances.
Here are 10 examples:
Credit Reports
The government allows you to get your credit report free each year from each of the three major credit-reporting agencies -- Equifax, Experian and Transunion -- in one of three ways:
# 1. Go to AnnualCreditReport.com and order it online.
# 2. Call toll-free 877-322-8228 to order it.
# 3. Request it by regular mail by writing to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, Ga. 30348-5281.
This will allow you to confirm that everything in your report is correct, ensuring that you get the best rates if you borrow money. If there are inaccuracies, your can correct them.
Receiving these reports can also tip you off early to possible identity theft, saving you countless hours of frustration and time that it would take to correct a fraud.
Tax Filing
Seventy percent of Americans can do their taxes at no cost.
If your adjusted gross income was $54,000 or less in 2007, you can use Free File to prepare and e-file your taxes online through the IRS Web site.
Be sure to use the IRS Web site since it's the only place you can use the tax software and file at no cost. If you go directly to tax-software sites, you will be charged a fee to file.
Water-Conservation Kits
Contact your local water and sewer bureau to see if they offer free water-audit kits and water-conservation kits.
The water-audit kit will help you find areas where you may be wasting water. The water-conservation kit will help reduce your water usage.
A surprising number of these public-utility companies offer these both free. This saves you money in two ways: you won't need to pay for water-conservation devices and you'll create monthly savings by reducing the amount of water you use.
Free water-conservation kits usually contain faucet aerators, low flow shower heads, water gauges and shower timers. Here's an example.
Energy Audit
Many electric companies offer free energy audits where they will come to your home and evaluate where you may be wasting energy. Then you can see what will bring you the most savings on your energy bill.
In addition, they may offer free devices such as Energy-efficient light bulbs, weather stripping and caulk to help you save without having to buy these for yourself. Here's an example.
In addition, some may offer discounts and rebates for the purchase of energy efficient appliances all of which will help you pinpoint waste so you can save money.
Personal-Finance Education
More and more colleges are offering free online courses.
Among the wide variety of classes offered is one from University of California, Irvine, that is a personal-finance course.
Take it free of charge to help you learn the basics of personal finances or brush up what you have learned on your own.
Small-Business Education
If you'd like to boost your income by starting a part-time home business, the U.S. Small Business Administration offers a wide variety of classes at no cost that can help you.
This includes such information as how to write a business plan and how to register your company. Classes are usually held at locations across the U.S. You can find the classes nearest you through the SBA Local resource finder.
news source : http://www.thestreet.com/
The news lately has been focusing on the money that people are likely to get back as a tax refund from the government as part of the economic stimulus plan.
But plenty of other freebies can spruce up your personal finances.
Here are 10 examples:
Credit Reports
The government allows you to get your credit report free each year from each of the three major credit-reporting agencies -- Equifax, Experian and Transunion -- in one of three ways:
# 1. Go to AnnualCreditReport.com and order it online.
# 2. Call toll-free 877-322-8228 to order it.
# 3. Request it by regular mail by writing to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, Ga. 30348-5281.
This will allow you to confirm that everything in your report is correct, ensuring that you get the best rates if you borrow money. If there are inaccuracies, your can correct them.
Receiving these reports can also tip you off early to possible identity theft, saving you countless hours of frustration and time that it would take to correct a fraud.
Tax Filing
Seventy percent of Americans can do their taxes at no cost.
If your adjusted gross income was $54,000 or less in 2007, you can use Free File to prepare and e-file your taxes online through the IRS Web site.
Be sure to use the IRS Web site since it's the only place you can use the tax software and file at no cost. If you go directly to tax-software sites, you will be charged a fee to file.
Water-Conservation Kits
Contact your local water and sewer bureau to see if they offer free water-audit kits and water-conservation kits.
The water-audit kit will help you find areas where you may be wasting water. The water-conservation kit will help reduce your water usage.
A surprising number of these public-utility companies offer these both free. This saves you money in two ways: you won't need to pay for water-conservation devices and you'll create monthly savings by reducing the amount of water you use.
Free water-conservation kits usually contain faucet aerators, low flow shower heads, water gauges and shower timers. Here's an example.
Energy Audit
Many electric companies offer free energy audits where they will come to your home and evaluate where you may be wasting energy. Then you can see what will bring you the most savings on your energy bill.
In addition, they may offer free devices such as Energy-efficient light bulbs, weather stripping and caulk to help you save without having to buy these for yourself. Here's an example.
In addition, some may offer discounts and rebates for the purchase of energy efficient appliances all of which will help you pinpoint waste so you can save money.
Personal-Finance Education
More and more colleges are offering free online courses.
Among the wide variety of classes offered is one from University of California, Irvine, that is a personal-finance course.
Take it free of charge to help you learn the basics of personal finances or brush up what you have learned on your own.
Small-Business Education
If you'd like to boost your income by starting a part-time home business, the U.S. Small Business Administration offers a wide variety of classes at no cost that can help you.
This includes such information as how to write a business plan and how to register your company. Classes are usually held at locations across the U.S. You can find the classes nearest you through the SBA Local resource finder.
news source : http://www.thestreet.com/
Entrepreneurs avoid use of credit cards to fund business
People thinking about starting up their own companies are nearly always on the receiving end of some stern advice: Don’t use credit cards to fund your business.
But the truth is that most entrepreneurs do rely on plastic in the early—and sometimes later—stages of forming their business. A March, 2007, survey done by the National Association of the Self-Employed (NASE) showed credit cards were second in popularity only to savings as the preferred method of start-up funding and ongoing funding for micro-business owners—those with 10 or fewer employees.
When asked what they used for funding, 58% of the 469 survey respondents said “savings” , and 10% said “credit cards” for start-up ; 36% said “savings” , and 21% said “credit cards” for ongoing operations funding. The other choices, including money from friends and family, and bank or home equity loans, came in lower on the list of possible responses to both questions.
Of course, there’s a valid reason would-be entrepreneurs are warned against putting their start-up funding on credit cards. “The worst thing in the world is to have your business fail and be stuck personally with $50,000 in debt at 21% interest,” says Joe Knight, a coauthor of the book Financial Intelligence (Harvard Business School Press, 2005).
The good news is that with some restraint and wisdom, credit cards can function as part of a sensible start-up funding package. “When entrepreneurs take those first trembling steps, most have to take them alone. Credit can help them do that. And it can help them bridge the gap when they know that orders or sales are coming in, or a private investor is going to come through,” says George Whitehead, business development director for the National Endowment for Science, Technology, and the Arts, a public-private partnership that invests in early-stage companies in Britain. “All kinds of unexpected things happen to small businesses . Credit can act as a cushion.” But it’s a cushion that should be used sparingly and with caution, says Gene Fairbrother, president of Dallas’ MBA Consulting and lead small business consultant for the NASE.
Don’t make the mistake of thinking you can rack up debt on a business credit card and then walk away from it if your business venture doesn’t work out, Fairbrother says. So how can an entrepreneur use credit cards successfully to get a company off the ground? Here are some expert suggestions:
“A year prior starting a company, gather every credit card offer that comes your way, so you have a lot of credit pre-approved and accessible to tap into,” says Janice Machala, founder of business and financial services firm Paladin Partners, of Kirkland, Wash.
news source : http://economictimes.indiatimes.com/
But the truth is that most entrepreneurs do rely on plastic in the early—and sometimes later—stages of forming their business. A March, 2007, survey done by the National Association of the Self-Employed (NASE) showed credit cards were second in popularity only to savings as the preferred method of start-up funding and ongoing funding for micro-business owners—those with 10 or fewer employees.
When asked what they used for funding, 58% of the 469 survey respondents said “savings” , and 10% said “credit cards” for start-up ; 36% said “savings” , and 21% said “credit cards” for ongoing operations funding. The other choices, including money from friends and family, and bank or home equity loans, came in lower on the list of possible responses to both questions.
Of course, there’s a valid reason would-be entrepreneurs are warned against putting their start-up funding on credit cards. “The worst thing in the world is to have your business fail and be stuck personally with $50,000 in debt at 21% interest,” says Joe Knight, a coauthor of the book Financial Intelligence (Harvard Business School Press, 2005).
The good news is that with some restraint and wisdom, credit cards can function as part of a sensible start-up funding package. “When entrepreneurs take those first trembling steps, most have to take them alone. Credit can help them do that. And it can help them bridge the gap when they know that orders or sales are coming in, or a private investor is going to come through,” says George Whitehead, business development director for the National Endowment for Science, Technology, and the Arts, a public-private partnership that invests in early-stage companies in Britain. “All kinds of unexpected things happen to small businesses . Credit can act as a cushion.” But it’s a cushion that should be used sparingly and with caution, says Gene Fairbrother, president of Dallas’ MBA Consulting and lead small business consultant for the NASE.
Don’t make the mistake of thinking you can rack up debt on a business credit card and then walk away from it if your business venture doesn’t work out, Fairbrother says. So how can an entrepreneur use credit cards successfully to get a company off the ground? Here are some expert suggestions:
“A year prior starting a company, gather every credit card offer that comes your way, so you have a lot of credit pre-approved and accessible to tap into,” says Janice Machala, founder of business and financial services firm Paladin Partners, of Kirkland, Wash.
news source : http://economictimes.indiatimes.com/
Tuesday, February 5, 2008
Church & Dwight Reports 2007 Earnings of $2.46 Per Share
PRINCETON, N.J., Feb 05, 2008 (BUSINESS WIRE) -- Church & Dwight Co., Inc. (NYSE:CHD) today announced that full-year 2007 sales increased 14% to $2,220.9 million from $1,945.7 million in 2006. Organic sales growth for 2007 was approximately 5%, adjusting for revenue related to acquisitions and foreign exchange. Earnings per share were up 19% to $2.46 compared to $2.07 in the prior year. Cash flow from operations increased 34% to $249 million compared to $186 million in 2006, and free cash flow (cash from operations less capital expenditures) was up 44% to $200 million versus $139 million in the prior year.
James R. Craigie, Chairman and Chief Executive Officer, commented, "We accomplished several important objectives in 2007. We delivered solid organic revenue growth, successfully completed the integration of the business we acquired from Orange Glo International ("OGI"), and continued to generate significant free cash flow. In 2008, we expect to continue to deliver improvement in shareholder value with another strong year marked by organic revenue growth, gross margin expansion, and strong free cash flow."
Fourth Quarter Review
Net income was $31.7 million in the fourth quarter or $0.46 per share, an increase of $0.10 per share from the prior period's net income of $23.9 million or $0.36 per share. This year's fourth quarter results include a $3.5 million charge relating to the reorganization of the Company's Canadian business and trademark impairment charges of $4.2 million related to certain international brands. Last year's results included $12.9 million of charges related to trademark impairments and a loss on the sale of a small U.S. plant.
Net sales for the fourth quarter increased 10% to $579.7 million. Organic sales, which exclude the impact of foreign exchange, increased by approximately 9% for the quarter.
Consumer Domestic sales in the fourth quarter were $407.8 million, a 6% increase over the prior period sales of $383.3 million. Sales of Arm & Hammer Super Scoop(R: 56.92, -0.10, -0.17%) cat litter, Trojan(R: 56.92, -0.10, -0.17%) condoms, SpinBrush(R: 56.92, -0.10, -0.17%) battery-powered toothbrushes, First Response(R: 56.92, -0.10, -0.17%) pregnancy test kits, Arm & Hammer(R: 56.92, -0.10, -0.17%) toothpaste, and Nair(R: 56.92, -0.10, -0.17%) depilatories were all higher than last year's fourth quarter. These increases were offset partially by lower sales of Mentadent and Pepsodent toothpaste. Consumer International fourth quarter sales of $99.5 million increased 13% over the prior period sales, of which 10% was primarily due to foreign currency changes. Specialty Products fourth quarter sales increased 31% to $ 72.3 million due to higher volumes and pricing in the animal nutrition and specialty chemical businesses.
Gross margin was 38.3% in the fourth quarter compared to 38.8% in the prior period due to business mix. The Consumer Domestic business, which represents 70% of CHD's total net revenues, increased gross margin by 70 basis points in the quarter as a result of OGI manufacturing synergies and cost-reduction programs which offset higher raw material costs. Consumer International gross margin, excluding the Canadian reorganization costs, was comparable to the prior period. The Specialty Products division, which represents 12% of total net sales, had a significant decrease in gross margin due to higher raw material costs which were partially offset by a raw material indexed surcharge implemented during the third quarter of this year.
Marketing expense was $75.1 million in the fourth quarter, an $8.6 million increase over the prior period. Marketing expense as a percentage of net sales increased to 13.0% in the quarter compared to 12.6% in the prior period. The Company launched Arm & Hammer with Oxi Clean Liquid Laundry Detergent in the fourth quarter with significant marketing support which will continue in early 2008.
Selling, general, and administrative expense was $89.1 million in the fourth quarter, a $4.6 million decrease over the prior period. The fourth quarter 2007 results include $6.7 million of trademark impairment and reorganization costs. The prior period results include $11.6 million of trademark impairment charges.
Operating income increased by approximately 30% to $57.7 million in the fourth quarter compared to $44.2 million in the prior period.
Other expense was $11.0 million in the fourth quarter compared to $14.2 million in the prior period due to reduced interest expense and higher interest income.
The effective tax rate in the fourth quarter was 35.5% compared to last year's 25.1%. The prior period effective tax rate was significantly lower than 2007 because it included the full-year benefit of the research and development tax credit which was reinstated by Congress in December 2006.
New Product Activity
On the new product front, Mr. Craigie commented, "We expect 2008 to be another solid year of organic growth for Church & Dwight driven by an impressive pipeline of new and improved products."
In family planning, there will be new additions to the Trojan product line, including the launch of Thintensity and Magnum Thin, capitalizing on the growing "thin" segment of the condom category. In addition, in the first quarter of 2008, First Response is launching a digital pregnancy test kit and a daily ovulation test kit.
In oral and skin care, the Company will be expanding its Nair depilatory product line with Nair Shower Power, a convenient way to remove hair in the shower, and Nair Soothing Wax strips. The Company will also be introducing three new SpinBrush products in the battery-powered toothbrush category, and launching two new oral care products under the Arm & Hammer name: Age Defying toothpaste, to protect and rebuild enamel; and Whitening Booster, an additive used with any toothpaste for convenient whitening.
In Household products, the Company recently launched Arm & Hammer Laundry Detergent with Oxi Clean stain fighters in both powdered and liquid form. This product combines the deodorization and cleaning power of Arm & Hammer Laundry Detergent with the powerful stain fighting benefits of Oxi Clean. The Company is also introducing Arm & Hammer Essentials Free liquid laundry detergent made from plant-based soaps. Finally, the Company will be expanding distribution of its newest cat litter, Arm & Hammer Odor Alert. Arm & Hammer Odor Alert is the only cat litter that turns the clumps blue, making it easier for consumers to find and remove the source of the odor.
During the quarter, Church & Dwight completed the first wave of shipments of concentrated liquid laundry detergent and the Company is encouraged by the response of consumers. The speed of conversion and initial sales reports for the Company's brands are positive. The second wave began on January 21 in the midwest and northwest, and the final wave will commence in early April in the northeastern U.S.
Outlook for 2008
With regard to 2008, Mr. Craigie said, "We concluded 2007 with strong momentum and expect another strong year in 2008. Despite continuing commodity cost pressures and a slowing economy, we are comfortable at this point with an earnings per share goal of $2.77, which is an increase of approximately 13% over 2007 results. This earnings growth will be driven by solid organic revenue growth and gross margin expansion. In particular, the benefits that we expect from liquid laundry detergent concentration, OGI business manufacturing integration synergies, February 2008 price increases on Trojan condoms, Arm & Hammer baking soda and Arm & Hammer cat litter, and our cost-reduction programs should enable us to increase our gross margin by 100 basis points and further increase our marketing spending to build our brand equity."
As previously reported, at its January 30th Board meeting, the Company declared a quarterly dividend of $0.08 cents per share. The dividend will be payable March 3, 2008 to stockholders of record at the close of business on February 11, 2008. This is the Company's 428th consecutive regular quarterly dividend.
Church & Dwight will host a conference call to discuss the fourth quarter and full year 2007 results on February 5 at 12:30 p.m. (ET). To participate, dial in at 888-680-0869, access code: 36528604. A replay will be available two hours after the call at 888-286-8010, access code: 95136110, as well as on the Company's website. Also, you can participate via webcast by visiting the Investor Relations section of the Company's website at www.churchdwight.com.
news source : http://www.foxbusiness.com/markets/
James R. Craigie, Chairman and Chief Executive Officer, commented, "We accomplished several important objectives in 2007. We delivered solid organic revenue growth, successfully completed the integration of the business we acquired from Orange Glo International ("OGI"), and continued to generate significant free cash flow. In 2008, we expect to continue to deliver improvement in shareholder value with another strong year marked by organic revenue growth, gross margin expansion, and strong free cash flow."
Fourth Quarter Review
Net income was $31.7 million in the fourth quarter or $0.46 per share, an increase of $0.10 per share from the prior period's net income of $23.9 million or $0.36 per share. This year's fourth quarter results include a $3.5 million charge relating to the reorganization of the Company's Canadian business and trademark impairment charges of $4.2 million related to certain international brands. Last year's results included $12.9 million of charges related to trademark impairments and a loss on the sale of a small U.S. plant.
Net sales for the fourth quarter increased 10% to $579.7 million. Organic sales, which exclude the impact of foreign exchange, increased by approximately 9% for the quarter.
Consumer Domestic sales in the fourth quarter were $407.8 million, a 6% increase over the prior period sales of $383.3 million. Sales of Arm & Hammer Super Scoop(R: 56.92, -0.10, -0.17%) cat litter, Trojan(R: 56.92, -0.10, -0.17%) condoms, SpinBrush(R: 56.92, -0.10, -0.17%) battery-powered toothbrushes, First Response(R: 56.92, -0.10, -0.17%) pregnancy test kits, Arm & Hammer(R: 56.92, -0.10, -0.17%) toothpaste, and Nair(R: 56.92, -0.10, -0.17%) depilatories were all higher than last year's fourth quarter. These increases were offset partially by lower sales of Mentadent and Pepsodent toothpaste. Consumer International fourth quarter sales of $99.5 million increased 13% over the prior period sales, of which 10% was primarily due to foreign currency changes. Specialty Products fourth quarter sales increased 31% to $ 72.3 million due to higher volumes and pricing in the animal nutrition and specialty chemical businesses.
Gross margin was 38.3% in the fourth quarter compared to 38.8% in the prior period due to business mix. The Consumer Domestic business, which represents 70% of CHD's total net revenues, increased gross margin by 70 basis points in the quarter as a result of OGI manufacturing synergies and cost-reduction programs which offset higher raw material costs. Consumer International gross margin, excluding the Canadian reorganization costs, was comparable to the prior period. The Specialty Products division, which represents 12% of total net sales, had a significant decrease in gross margin due to higher raw material costs which were partially offset by a raw material indexed surcharge implemented during the third quarter of this year.
Marketing expense was $75.1 million in the fourth quarter, an $8.6 million increase over the prior period. Marketing expense as a percentage of net sales increased to 13.0% in the quarter compared to 12.6% in the prior period. The Company launched Arm & Hammer with Oxi Clean Liquid Laundry Detergent in the fourth quarter with significant marketing support which will continue in early 2008.
Selling, general, and administrative expense was $89.1 million in the fourth quarter, a $4.6 million decrease over the prior period. The fourth quarter 2007 results include $6.7 million of trademark impairment and reorganization costs. The prior period results include $11.6 million of trademark impairment charges.
Operating income increased by approximately 30% to $57.7 million in the fourth quarter compared to $44.2 million in the prior period.
Other expense was $11.0 million in the fourth quarter compared to $14.2 million in the prior period due to reduced interest expense and higher interest income.
The effective tax rate in the fourth quarter was 35.5% compared to last year's 25.1%. The prior period effective tax rate was significantly lower than 2007 because it included the full-year benefit of the research and development tax credit which was reinstated by Congress in December 2006.
New Product Activity
On the new product front, Mr. Craigie commented, "We expect 2008 to be another solid year of organic growth for Church & Dwight driven by an impressive pipeline of new and improved products."
In family planning, there will be new additions to the Trojan product line, including the launch of Thintensity and Magnum Thin, capitalizing on the growing "thin" segment of the condom category. In addition, in the first quarter of 2008, First Response is launching a digital pregnancy test kit and a daily ovulation test kit.
In oral and skin care, the Company will be expanding its Nair depilatory product line with Nair Shower Power, a convenient way to remove hair in the shower, and Nair Soothing Wax strips. The Company will also be introducing three new SpinBrush products in the battery-powered toothbrush category, and launching two new oral care products under the Arm & Hammer name: Age Defying toothpaste, to protect and rebuild enamel; and Whitening Booster, an additive used with any toothpaste for convenient whitening.
In Household products, the Company recently launched Arm & Hammer Laundry Detergent with Oxi Clean stain fighters in both powdered and liquid form. This product combines the deodorization and cleaning power of Arm & Hammer Laundry Detergent with the powerful stain fighting benefits of Oxi Clean. The Company is also introducing Arm & Hammer Essentials Free liquid laundry detergent made from plant-based soaps. Finally, the Company will be expanding distribution of its newest cat litter, Arm & Hammer Odor Alert. Arm & Hammer Odor Alert is the only cat litter that turns the clumps blue, making it easier for consumers to find and remove the source of the odor.
During the quarter, Church & Dwight completed the first wave of shipments of concentrated liquid laundry detergent and the Company is encouraged by the response of consumers. The speed of conversion and initial sales reports for the Company's brands are positive. The second wave began on January 21 in the midwest and northwest, and the final wave will commence in early April in the northeastern U.S.
Outlook for 2008
With regard to 2008, Mr. Craigie said, "We concluded 2007 with strong momentum and expect another strong year in 2008. Despite continuing commodity cost pressures and a slowing economy, we are comfortable at this point with an earnings per share goal of $2.77, which is an increase of approximately 13% over 2007 results. This earnings growth will be driven by solid organic revenue growth and gross margin expansion. In particular, the benefits that we expect from liquid laundry detergent concentration, OGI business manufacturing integration synergies, February 2008 price increases on Trojan condoms, Arm & Hammer baking soda and Arm & Hammer cat litter, and our cost-reduction programs should enable us to increase our gross margin by 100 basis points and further increase our marketing spending to build our brand equity."
As previously reported, at its January 30th Board meeting, the Company declared a quarterly dividend of $0.08 cents per share. The dividend will be payable March 3, 2008 to stockholders of record at the close of business on February 11, 2008. This is the Company's 428th consecutive regular quarterly dividend.
Church & Dwight will host a conference call to discuss the fourth quarter and full year 2007 results on February 5 at 12:30 p.m. (ET). To participate, dial in at 888-680-0869, access code: 36528604. A replay will be available two hours after the call at 888-286-8010, access code: 95136110, as well as on the Company's website. Also, you can participate via webcast by visiting the Investor Relations section of the Company's website at www.churchdwight.com.
news source : http://www.foxbusiness.com/markets/
Church & Dwight Reports 2007 Earnings of $2.46 Per Share
PRINCETON, N.J., Feb 05, 2008 (BUSINESS WIRE) -- Church & Dwight Co., Inc. (NYSE:CHD) today announced that full-year 2007 sales increased 14% to $2,220.9 million from $1,945.7 million in 2006. Organic sales growth for 2007 was approximately 5%, adjusting for revenue related to acquisitions and foreign exchange. Earnings per share were up 19% to $2.46 compared to $2.07 in the prior year. Cash flow from operations increased 34% to $249 million compared to $186 million in 2006, and free cash flow (cash from operations less capital expenditures) was up 44% to $200 million versus $139 million in the prior year.
James R. Craigie, Chairman and Chief Executive Officer, commented, "We accomplished several important objectives in 2007. We delivered solid organic revenue growth, successfully completed the integration of the business we acquired from Orange Glo International ("OGI"), and continued to generate significant free cash flow. In 2008, we expect to continue to deliver improvement in shareholder value with another strong year marked by organic revenue growth, gross margin expansion, and strong free cash flow."
Fourth Quarter Review
Net income was $31.7 million in the fourth quarter or $0.46 per share, an increase of $0.10 per share from the prior period's net income of $23.9 million or $0.36 per share. This year's fourth quarter results include a $3.5 million charge relating to the reorganization of the Company's Canadian business and trademark impairment charges of $4.2 million related to certain international brands. Last year's results included $12.9 million of charges related to trademark impairments and a loss on the sale of a small U.S. plant.
Net sales for the fourth quarter increased 10% to $579.7 million. Organic sales, which exclude the impact of foreign exchange, increased by approximately 9% for the quarter.
Consumer Domestic sales in the fourth quarter were $407.8 million, a 6% increase over the prior period sales of $383.3 million. Sales of Arm & Hammer Super Scoop(R: 56.92, -0.10, -0.17%) cat litter, Trojan(R: 56.92, -0.10, -0.17%) condoms, SpinBrush(R: 56.92, -0.10, -0.17%) battery-powered toothbrushes, First Response(R: 56.92, -0.10, -0.17%) pregnancy test kits, Arm & Hammer(R: 56.92, -0.10, -0.17%) toothpaste, and Nair(R: 56.92, -0.10, -0.17%) depilatories were all higher than last year's fourth quarter. These increases were offset partially by lower sales of Mentadent and Pepsodent toothpaste. Consumer International fourth quarter sales of $99.5 million increased 13% over the prior period sales, of which 10% was primarily due to foreign currency changes. Specialty Products fourth quarter sales increased 31% to $ 72.3 million due to higher volumes and pricing in the animal nutrition and specialty chemical businesses.
Gross margin was 38.3% in the fourth quarter compared to 38.8% in the prior period due to business mix. The Consumer Domestic business, which represents 70% of CHD's total net revenues, increased gross margin by 70 basis points in the quarter as a result of OGI manufacturing synergies and cost-reduction programs which offset higher raw material costs. Consumer International gross margin, excluding the Canadian reorganization costs, was comparable to the prior period. The Specialty Products division, which represents 12% of total net sales, had a significant decrease in gross margin due to higher raw material costs which were partially offset by a raw material indexed surcharge implemented during the third quarter of this year.
Marketing expense was $75.1 million in the fourth quarter, an $8.6 million increase over the prior period. Marketing expense as a percentage of net sales increased to 13.0% in the quarter compared to 12.6% in the prior period. The Company launched Arm & Hammer with Oxi Clean Liquid Laundry Detergent in the fourth quarter with significant marketing support which will continue in early 2008.
Selling, general, and administrative expense was $89.1 million in the fourth quarter, a $4.6 million decrease over the prior period. The fourth quarter 2007 results include $6.7 million of trademark impairment and reorganization costs. The prior period results include $11.6 million of trademark impairment charges.
Operating income increased by approximately 30% to $57.7 million in the fourth quarter compared to $44.2 million in the prior period.
Other expense was $11.0 million in the fourth quarter compared to $14.2 million in the prior period due to reduced interest expense and higher interest income.
The effective tax rate in the fourth quarter was 35.5% compared to last year's 25.1%. The prior period effective tax rate was significantly lower than 2007 because it included the full-year benefit of the research and development tax credit which was reinstated by Congress in December 2006.
New Product Activity
On the new product front, Mr. Craigie commented, "We expect 2008 to be another solid year of organic growth for Church & Dwight driven by an impressive pipeline of new and improved products."
In family planning, there will be new additions to the Trojan product line, including the launch of Thintensity and Magnum Thin, capitalizing on the growing "thin" segment of the condom category. In addition, in the first quarter of 2008, First Response is launching a digital pregnancy test kit and a daily ovulation test kit.
In oral and skin care, the Company will be expanding its Nair depilatory product line with Nair Shower Power, a convenient way to remove hair in the shower, and Nair Soothing Wax strips. The Company will also be introducing three new SpinBrush products in the battery-powered toothbrush category, and launching two new oral care products under the Arm & Hammer name: Age Defying toothpaste, to protect and rebuild enamel; and Whitening Booster, an additive used with any toothpaste for convenient whitening.
In Household products, the Company recently launched Arm & Hammer Laundry Detergent with Oxi Clean stain fighters in both powdered and liquid form. This product combines the deodorization and cleaning power of Arm & Hammer Laundry Detergent with the powerful stain fighting benefits of Oxi Clean. The Company is also introducing Arm & Hammer Essentials Free liquid laundry detergent made from plant-based soaps. Finally, the Company will be expanding distribution of its newest cat litter, Arm & Hammer Odor Alert. Arm & Hammer Odor Alert is the only cat litter that turns the clumps blue, making it easier for consumers to find and remove the source of the odor.
During the quarter, Church & Dwight completed the first wave of shipments of concentrated liquid laundry detergent and the Company is encouraged by the response of consumers. The speed of conversion and initial sales reports for the Company's brands are positive. The second wave began on January 21 in the midwest and northwest, and the final wave will commence in early April in the northeastern U.S.
Outlook for 2008
With regard to 2008, Mr. Craigie said, "We concluded 2007 with strong momentum and expect another strong year in 2008. Despite continuing commodity cost pressures and a slowing economy, we are comfortable at this point with an earnings per share goal of $2.77, which is an increase of approximately 13% over 2007 results. This earnings growth will be driven by solid organic revenue growth and gross margin expansion. In particular, the benefits that we expect from liquid laundry detergent concentration, OGI business manufacturing integration synergies, February 2008 price increases on Trojan condoms, Arm & Hammer baking soda and Arm & Hammer cat litter, and our cost-reduction programs should enable us to increase our gross margin by 100 basis points and further increase our marketing spending to build our brand equity."
As previously reported, at its January 30th Board meeting, the Company declared a quarterly dividend of $0.08 cents per share. The dividend will be payable March 3, 2008 to stockholders of record at the close of business on February 11, 2008. This is the Company's 428th consecutive regular quarterly dividend.
Church & Dwight will host a conference call to discuss the fourth quarter and full year 2007 results on February 5 at 12:30 p.m. (ET). To participate, dial in at 888-680-0869, access code: 36528604. A replay will be available two hours after the call at 888-286-8010, access code: 95136110, as well as on the Company's website. Also, you can participate via webcast by visiting the Investor Relations section of the Company's website at www.churchdwight.com.
news source :
James R. Craigie, Chairman and Chief Executive Officer, commented, "We accomplished several important objectives in 2007. We delivered solid organic revenue growth, successfully completed the integration of the business we acquired from Orange Glo International ("OGI"), and continued to generate significant free cash flow. In 2008, we expect to continue to deliver improvement in shareholder value with another strong year marked by organic revenue growth, gross margin expansion, and strong free cash flow."
Fourth Quarter Review
Net income was $31.7 million in the fourth quarter or $0.46 per share, an increase of $0.10 per share from the prior period's net income of $23.9 million or $0.36 per share. This year's fourth quarter results include a $3.5 million charge relating to the reorganization of the Company's Canadian business and trademark impairment charges of $4.2 million related to certain international brands. Last year's results included $12.9 million of charges related to trademark impairments and a loss on the sale of a small U.S. plant.
Net sales for the fourth quarter increased 10% to $579.7 million. Organic sales, which exclude the impact of foreign exchange, increased by approximately 9% for the quarter.
Consumer Domestic sales in the fourth quarter were $407.8 million, a 6% increase over the prior period sales of $383.3 million. Sales of Arm & Hammer Super Scoop(R: 56.92, -0.10, -0.17%) cat litter, Trojan(R: 56.92, -0.10, -0.17%) condoms, SpinBrush(R: 56.92, -0.10, -0.17%) battery-powered toothbrushes, First Response(R: 56.92, -0.10, -0.17%) pregnancy test kits, Arm & Hammer(R: 56.92, -0.10, -0.17%) toothpaste, and Nair(R: 56.92, -0.10, -0.17%) depilatories were all higher than last year's fourth quarter. These increases were offset partially by lower sales of Mentadent and Pepsodent toothpaste. Consumer International fourth quarter sales of $99.5 million increased 13% over the prior period sales, of which 10% was primarily due to foreign currency changes. Specialty Products fourth quarter sales increased 31% to $ 72.3 million due to higher volumes and pricing in the animal nutrition and specialty chemical businesses.
Gross margin was 38.3% in the fourth quarter compared to 38.8% in the prior period due to business mix. The Consumer Domestic business, which represents 70% of CHD's total net revenues, increased gross margin by 70 basis points in the quarter as a result of OGI manufacturing synergies and cost-reduction programs which offset higher raw material costs. Consumer International gross margin, excluding the Canadian reorganization costs, was comparable to the prior period. The Specialty Products division, which represents 12% of total net sales, had a significant decrease in gross margin due to higher raw material costs which were partially offset by a raw material indexed surcharge implemented during the third quarter of this year.
Marketing expense was $75.1 million in the fourth quarter, an $8.6 million increase over the prior period. Marketing expense as a percentage of net sales increased to 13.0% in the quarter compared to 12.6% in the prior period. The Company launched Arm & Hammer with Oxi Clean Liquid Laundry Detergent in the fourth quarter with significant marketing support which will continue in early 2008.
Selling, general, and administrative expense was $89.1 million in the fourth quarter, a $4.6 million decrease over the prior period. The fourth quarter 2007 results include $6.7 million of trademark impairment and reorganization costs. The prior period results include $11.6 million of trademark impairment charges.
Operating income increased by approximately 30% to $57.7 million in the fourth quarter compared to $44.2 million in the prior period.
Other expense was $11.0 million in the fourth quarter compared to $14.2 million in the prior period due to reduced interest expense and higher interest income.
The effective tax rate in the fourth quarter was 35.5% compared to last year's 25.1%. The prior period effective tax rate was significantly lower than 2007 because it included the full-year benefit of the research and development tax credit which was reinstated by Congress in December 2006.
New Product Activity
On the new product front, Mr. Craigie commented, "We expect 2008 to be another solid year of organic growth for Church & Dwight driven by an impressive pipeline of new and improved products."
In family planning, there will be new additions to the Trojan product line, including the launch of Thintensity and Magnum Thin, capitalizing on the growing "thin" segment of the condom category. In addition, in the first quarter of 2008, First Response is launching a digital pregnancy test kit and a daily ovulation test kit.
In oral and skin care, the Company will be expanding its Nair depilatory product line with Nair Shower Power, a convenient way to remove hair in the shower, and Nair Soothing Wax strips. The Company will also be introducing three new SpinBrush products in the battery-powered toothbrush category, and launching two new oral care products under the Arm & Hammer name: Age Defying toothpaste, to protect and rebuild enamel; and Whitening Booster, an additive used with any toothpaste for convenient whitening.
In Household products, the Company recently launched Arm & Hammer Laundry Detergent with Oxi Clean stain fighters in both powdered and liquid form. This product combines the deodorization and cleaning power of Arm & Hammer Laundry Detergent with the powerful stain fighting benefits of Oxi Clean. The Company is also introducing Arm & Hammer Essentials Free liquid laundry detergent made from plant-based soaps. Finally, the Company will be expanding distribution of its newest cat litter, Arm & Hammer Odor Alert. Arm & Hammer Odor Alert is the only cat litter that turns the clumps blue, making it easier for consumers to find and remove the source of the odor.
During the quarter, Church & Dwight completed the first wave of shipments of concentrated liquid laundry detergent and the Company is encouraged by the response of consumers. The speed of conversion and initial sales reports for the Company's brands are positive. The second wave began on January 21 in the midwest and northwest, and the final wave will commence in early April in the northeastern U.S.
Outlook for 2008
With regard to 2008, Mr. Craigie said, "We concluded 2007 with strong momentum and expect another strong year in 2008. Despite continuing commodity cost pressures and a slowing economy, we are comfortable at this point with an earnings per share goal of $2.77, which is an increase of approximately 13% over 2007 results. This earnings growth will be driven by solid organic revenue growth and gross margin expansion. In particular, the benefits that we expect from liquid laundry detergent concentration, OGI business manufacturing integration synergies, February 2008 price increases on Trojan condoms, Arm & Hammer baking soda and Arm & Hammer cat litter, and our cost-reduction programs should enable us to increase our gross margin by 100 basis points and further increase our marketing spending to build our brand equity."
As previously reported, at its January 30th Board meeting, the Company declared a quarterly dividend of $0.08 cents per share. The dividend will be payable March 3, 2008 to stockholders of record at the close of business on February 11, 2008. This is the Company's 428th consecutive regular quarterly dividend.
Church & Dwight will host a conference call to discuss the fourth quarter and full year 2007 results on February 5 at 12:30 p.m. (ET). To participate, dial in at 888-680-0869, access code: 36528604. A replay will be available two hours after the call at 888-286-8010, access code: 95136110, as well as on the Company's website. Also, you can participate via webcast by visiting the Investor Relations section of the Company's website at www.churchdwight.com.
news source :
Monday, February 4, 2008
Sector Snap: Credit Card Lenders
NEW YORK — A UBS Investment Research analyst cut his rating on credit card lenders on Monday, saying a recession will put more people out of work and many will not be able to pay their bills.
UBS Investment Research analyst Eric E. Wasserstrom, in keeping with UBS' outlook for a recession in the first half of the year, cut his rating on American Express Co., Capital One Financial Corp. and Discover Financial Services LLC to "Sell." He previously rated American Express a "Buy," and Capital One and Discover at "Neutral."
With the economy shrinking, Wasserstrom expects the unemployment rate to tick up. The job market is the most important pillar for credit quality, he said. With more people out of work, credit card lenders will report more bad debt on their books, he said.
Wasserstrom slashed his price target on American Express to $45 from $67. The stock closed Friday at $49.60, and in afternoon trading Monday lost $1.80, or 3.6 percent to $47.80.
Last month, the New York-based lender set aside $440 million to cover unpaid loans, and said growth in spending on its 84.7 million cards trailed off in December.
Wasserstrom cut his price target on Discover, which was spun off from Morgan Stanley last year, to $14 from $18. Discover's stock sank $1.72, or 9.6 percent, to $16.24. Discover Financial lost $391 million in the fourth quarter.
Shares of Capital One Financial fell $4.20, or 7.4 percent, to $52.81. The company's stock has lost about 30 percent of its value in the past year. Capital One wrote off $1.3 billion in loans in the fourth quarter and expects to write off $5.9 billion this year.
news source : http://www.chron.com/disp/story.mpl/ap/fn/5511875.html
UBS Investment Research analyst Eric E. Wasserstrom, in keeping with UBS' outlook for a recession in the first half of the year, cut his rating on American Express Co., Capital One Financial Corp. and Discover Financial Services LLC to "Sell." He previously rated American Express a "Buy," and Capital One and Discover at "Neutral."
With the economy shrinking, Wasserstrom expects the unemployment rate to tick up. The job market is the most important pillar for credit quality, he said. With more people out of work, credit card lenders will report more bad debt on their books, he said.
Wasserstrom slashed his price target on American Express to $45 from $67. The stock closed Friday at $49.60, and in afternoon trading Monday lost $1.80, or 3.6 percent to $47.80.
Last month, the New York-based lender set aside $440 million to cover unpaid loans, and said growth in spending on its 84.7 million cards trailed off in December.
Wasserstrom cut his price target on Discover, which was spun off from Morgan Stanley last year, to $14 from $18. Discover's stock sank $1.72, or 9.6 percent, to $16.24. Discover Financial lost $391 million in the fourth quarter.
Shares of Capital One Financial fell $4.20, or 7.4 percent, to $52.81. The company's stock has lost about 30 percent of its value in the past year. Capital One wrote off $1.3 billion in loans in the fourth quarter and expects to write off $5.9 billion this year.
news source : http://www.chron.com/disp/story.mpl/ap/fn/5511875.html
Sunday, February 3, 2008
Egg customer anger at credit move
Egg says 161,000 cards belonging to people whose credit profiles have deteriorated since they signed up will stop working in 35 days' time.
But people who insist they have good records have been contacting the BBC to say they are on the list.A Labour MP is asking the banking industry watchdog, the Financial Services Authority, to investigate.Nigel Griffiths, a former deputy leader of the House of Commons, said Egg's action was "unacceptable".A spokesman for the bank said those affected were customers it no longer wanted to lend to "regardless of their current status".Credit cards are being withdrawn from 7% of Egg's customers who it deems to pose an unacceptably "high risk".
This could include those who have missed repayments or exceeded their credit limit.
'Arbitrary action'
Cardholders will be able to continue making minimum monthly repayments on their balances but will not be able to spend any more after the deadline.
The move follows a "one-off" review after Egg was bought by US-based Citigroup for £575m last year.The bank is not demanding immediate repayment of balances or making any changes to customers' terms and conditions or their interest rates.
The 35-day notice period starts on receipt of the letter, which also provides details of how to appeal against the decision.
news source : http://news.bbc.co.uk/2/hi/business/7224268.stm
But people who insist they have good records have been contacting the BBC to say they are on the list.A Labour MP is asking the banking industry watchdog, the Financial Services Authority, to investigate.Nigel Griffiths, a former deputy leader of the House of Commons, said Egg's action was "unacceptable".A spokesman for the bank said those affected were customers it no longer wanted to lend to "regardless of their current status".Credit cards are being withdrawn from 7% of Egg's customers who it deems to pose an unacceptably "high risk".
This could include those who have missed repayments or exceeded their credit limit.
'Arbitrary action'
Cardholders will be able to continue making minimum monthly repayments on their balances but will not be able to spend any more after the deadline.
The move follows a "one-off" review after Egg was bought by US-based Citigroup for £575m last year.The bank is not demanding immediate repayment of balances or making any changes to customers' terms and conditions or their interest rates.
The 35-day notice period starts on receipt of the letter, which also provides details of how to appeal against the decision.
news source : http://news.bbc.co.uk/2/hi/business/7224268.stm
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