VISA offered up its answer to the 'World MasterCard' this month with
the introduction of the VISA Signature Card. Associates National Bank has
begun test marketing the card and expects to begin national marketing by
the end of this month. The high-end, hybrid charge card/credit card, offers
cardholders two key benefits: a Preferred Access program and a Preferred
Travel program. The Preferred Access program offers cardholders VIP access
to exclusive and unusual events. For example, VISA says cardholders will
enjoy special hospitality and access to the Sydney 2000 Olympic Games. The
'Preferred Travel' program offers cardholders automatic upgrades, late
check-out and access to special room blocks through VISA's alliances with
various travel partners. Currently VISA has alliances with Ritz-Carlton
Hotels, Le Meridien Hotels and Avis. VISA indicated it is developing an
airmile rewards program that may include the option for cardholders to
apply mileage bonus points to any line carrier.
Chase Manhattan and Continental Airlines brought a new co-branded
card out of the hangar this month. The Continental Airlines VISA/MasterCard
from Chase will begin flying through the mail later this month and will be
available in the classic and platinum versions. The new product is the
result of an 8-year contract signed by both firms in January. Continental's
frequent flyer bank card was formerly issued by Marine Midland. Chase
formerly issued the British Airways bank card. The Continental Airlines
credit card from Chase will offer new classic customers a 4,000 mile
sign-up bonus and new platinum cardholders a 6,000 mile sign-up bonus.
Besides earning the typical one mile for each purchase dollar charged, the
Continental/Chase card offers 1,000 additional miles on each anniversary date.
The world's widest circulating classical-music magazine, BBC Music
Magazine has joined up with First USA to offer the Classical Performance
VISA card. As part of the launch First USA is sponsoring a special 116-page
supplement to the BBC magazine called: Classical Music America. The
supplement is a music lover's guide to cities of North America. The new
VISA card offers cardholders discounts on BBC merchandise and music offers
as well as special discounts on BBC subscriptions. First USA is offering a
9.99% fixed APR and no-annual-fee. The card will be available as either a
Classic or Platinum VISA.
GE Capital's Monogram Credit Card Bank of Georgia and American Eagle
Outfitters Inc. jointly rolled out the AE Clear Card this month. The
see-through private label credit card offers a 10% discount with the first
AE purchase, discount coupons, special previews of upcoming fashion
collections and advanced notice of special sales and in-store events. GE is
charging an APR of prime +10.71%, except in Iowa and Maine, where the card
will carry a 21% APR. Joining the current late fee trend, GE is charging a
$15 late fee with no-grace-period for late payments, except for Iowa and
Wisconsin. Cardholders in Iowa will have a 30 day late payment grace period
and Wisconsin cardholders will have a five day late payment grace period.
Coca-Cola USA announced early this month it will distribute more than
55 million 'Coca-Cola Cards' . The special Coke
promotion provides customers with a red-wallet size card that contains up
to 50 special offers from retailers, restaurants and
recreational venues, most of which can be used again and again. The company
says the program is the most localized national initiative it has ever
offered, with more than 280 local versions of the program. Totally more
than 9,500 partners will participate featuring more than 20,000 local
offers. Coca-Cola also announced that MasterCard will join the program for
the second year by offering chances to win a loaded Coca-Cola MasterCard
ATM Cash Card on 1.1 billion specially marked packages of Coca-Cola. The
cash card chances will also appear under bottle caps and on the sides of
cups at fountain
outlets. MasterCard said it will begin its participation next month and
will award more than 2.2 million 'Coca-Cola MasterCards' with values of
$20, $40 and $100.
The National Hockey League's newest expansion team, the Minnesota
Wild, and First USA, launched a new MasterCard this month during the
Minnesota State Boy's High School Hockey Tournament. The Minnesota Wild
will begin play in the NHL in the 2000-2001 season. The Minnesota Wild
MasterCard offers approved applicants a free team T-shirt. Card pricing:
4.9% five-month intro APR, thereafter 13.99% fixed APR and no-annual-fee.
MasterCard is the official corporate sponsor of the NHL and First USA also
issues affinity cards for six other NHL teams.
A first-ever nationwide study of bankruptcy petitions has found that nearly
150,000 filers who filed last year could have repaid a significant portion
of what they owe. According to the new study by Ernst & Young LLP, these
debtors could have repaid 64% of their unsecured debts, representing a
potential recovery of more than $4 billion. The study found that, had the
needs-based provision of H.R. 3150, the Bankruptcy Reform Act of 1998, been
in effect, 15% of the 957,000 Chapter 7 filers in 1997 would have been
ineligible for the debt relief they received and forced to file Chapter 13
plans instead. The Ernst & Young study is based on a review of 2,100
petitions filed last year in all 90 bankruptcy courts nationwide.
America’s voters believe that the Federal law allowing forgiveness of
debt should be reformed, according to survey results released thsi month.
Asked to respond to a recent study concluding that those declaring
bankruptcy were forgiven $4 billion in debt they could have repaid, 76%
were "critical" and 43% were "outraged". The survey of 1000 registered
voters was conducted via telephone last week by Frederick Schneiders
Research of Washington, D.C. Among Republicans, independents and those
whose incomes exceeded $32,000 annually, the support level for reform was 91%.
