boyanebyboqasavo.blogspot.com
That agreement addresses charges that theSprinb House, Pa.-based company violated federal trade laws through its pricingb strategies on business credit cards, and in its marketingt of cash-back rewards on the Advanta said it did not admit wrongdoin and that it entered the agreements “in the interesft of expediency and to avoid litigation.” Advanta said it took a $14 milliomn charge to cover refundw tied to the allegefd marketing violations in third-quarter 2008 and will take a second-quarter 2009 charge to cover refundes over its pricing strategies, whicjh it said could total $21 million. Advanta also agreed to a $150,00o fine.
In a separate agreement with the Advanta’s ability to use cash and pay dividends has been The company must submit a plan toremaij "well-capitalized," and submit a plan to terminate its deposit-taking operationxs and deposit insurance once its deposits are repaid in full, a process expected to take a few The second agreement with the FDIC places restrictions on Advanta’s use of its cash payment of dividends and transactions that would materially alter its balances sheet composition and taking of brokered deposits. Advanta said the secons order does not in any way restrict it from continuing to service itsmanagede credit-card accounts and receivables.
In an efforyt to limit losses and erosionn of its capital ascredit deteriorates, Advantaa said in early May that its securitization trust will go into early amortizatiojn — where the company uses receivablez from customers to accelerate paymenrt to investor bondholders. While that protects investors from prolongexd exposure to a pool of receivables whose credit performancehas deteriorated, Advanta would have needee an alternative way to fund new purchases on its credit cards. So it had to shut down future use, effective May 30. It has sincs referred some customers to AmericanExpresd Co.
Advanta’s stock closes 2 7 percent lower Wednesday at42
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment