STUMBLING

Two major issuers got tangled up in litigation over their credit card practices this month. San Francisco-based Providian is facing consumer and shareholder lawsuits after it was announced that the San Francisco's Attorney Generals office is investigating Providian for alleged deceptive business practices. Meanwhile Minnesota-based U.S. Bank is facing lawsuits from the Minnesota Attorney General, consumers and shareholders, for allegedly releasing customers' private banking information to a telemarketing company.

The Providian complaint alleges that Providian engaged in deceptive, unfair and oppressive business practices directed at its credit cardholders. Some of the practices include failing to post payments received from cardholders in a timely fashion. Imposing unauthorized charges for credit protection and other services. Failing to respond to cardholder complaints, correct overcharges and remove improper charges assessed to cardholders.

The U.S. Bank complaint alleges that U.S. Bank released customers' private banking information to a telemarketing company in exchange for a multimillion dollar fee.

Minnesota says U.S. Bank violated the federal Fair Credit Reporting Act and engaged in consumer fraud and deceptive advertising by providing the telemarketing vendor with such private information as: social security numbers, account balances, transaction history, credit limits, credit insurance status, year to date finance charges, automated transactions authorized, credit card type/brand, number of credit cards, cash advance amount, behavior score, bankruptcy score, date of last payment, amount of last payment, date of last statement, and statement balance. The lawsuit also accuses U.S. Bank of approving telemarketing scripts that contained deceptive information. For example, if a customer asked a telemarketer if U.S. Bank had given the customer's credit card or checking account number to the telemarketer, the script instructed the telemarketer to answer "No, I personally do not have your account number." The MN AG's office is asking that the court to prohibit the bank's exchange of customers' personal information and order the bank to pay civil penalties to consumers. They are also calling upon Congress to enact legislation to protect consumers' rights to financial privacy.

GROOVY BABY!

Austin Powers - the man who marketed himself to death - now has a credit card. And "It's Titanium, Baby!". First USA and New Line Cinema rolled out the new Austin Powers Limited-Edition Titanium VISA credit card this month. The program is the first VISA credit card to be associated with the launch of a blockbuster comedy. The no-annual-fee card is available in two shagadelic designs "It's Titanium, Baby!" features Mike Myers as cheeky Austin Powers, and "Groovadelic" is a psychedelic '60s swirl design. Following the first use of their 'Austin Powers Titanium VISA' card, cardholders will receive a special complimentary widescreen edition of "Austin Powers International Man of Mystery," which includes extra scenes never before seen on VHS. The credit card offer features a 2.9% introductory rate and a 10.99% regular go-to interest rate. So get "shagged", apply by calling this special 800 phone number 1-800-860-6819.

GOING OVERSEAS

Consumers who travel abroad infrequently need to carry the right money mix says the AAA. Rather than pack a wallet full of colorful cash and pockets jingling with unfamiliar coins, AAA Worldwide Travel experts say the right mix involves several payment methods: cash, traveler's checks, ATM cards, debit cards and credit cards. As a general rule, carry traveler's checks to pay for goods purchased abroad; use credit cards for major purchases such as hotel stays; and use cash for small things such as tips and taxis. Hide money you won't spend that day in a money belt or hidden pouch. Traveler's checks usually get a better exchange rate than cash-for-cash currency exchanges. AAA offices offer fee-free traveler's checks to members. The U.S. dollar and U.S. dollar traveler's checks are readily exchanged throughout the world. Always protect your traveler's checks as you would cash and keep a list of the serial numbers separate so if they are lost or stolen, you can get them replaced. U.S. debit cards and ATM cards are gaining wider foreign acceptance and are also a convenient way to get cash, often without paying transaction fees. But if you lose an ATM or debit card, getting a replacement while on vacation will not be easy. One final tip regarding credit cards: a few card issuers have started adding 2-3 percent to wholesale foreign exchange rates on purchases made abroad. If you have a choice of credit cards to use, find out, before you leave, what each charges for this type of transaction.

EZ WEB PURCHASES

Consumers who shop online will now have the ability to set up an electronic wallet that will work throughout the Internet. Until now wallets have been offered on some Websites but each wallet system has had its own format. This month a group of industry leaders endorsed a universal format for digital wallets called ECML or Electronic Commerce Modeling Language. The format utilizes a set of uniform field names that streamlines the process by which merchants collect electronic data for shipping, billing and payment. Typically, consumers are required to fill out considerable information for a purchase -- especially at the first purchase -- and this can take several minutes. Electronic wallets allow consumers to input such data once and automatically fill in the merchant's form at the point of purchase on a merchant's site. To serve consumers completely, wallets must work at merchant sites around the Web and establishing uniform fields for data collection will allow that to happen. For consumers, establishing uniform fields for data collection will simplify the form-filling process to make the overall shopping experience more convenient. This in turn will increase the number of completed transactions at merchant sites. In fact, a February, 1999 report from Jupiter Communications on digital wallets found that 27 percent of online buyers abandon orders before check-out due to the hassle of filling out forms.

DISCOVER ONLINE

Intuit Inc. and Discover Financial Services, Inc. announced this month that Discover Cardmembers can now download their Discover Card account statement information to Quicken 99 personal finance management software. This past tax season, Discover Cardmembers who used TurboTax tax preparation software enjoyed the option of charging any federal income tax due to their Discover Card accounts. Additionally, through June 30, 1999, Discover Card's 'Internet ShopCenter' allows Cardmembers to save up to 25 percent off the regular retail price of Quicken 99 and receive an additional 10 percent Cashback Bonus award when using their Discover Card to make the purchase through ShopCenter. The Discover Card account center allows registered Cardmembers the ability to access current and past transaction information and sort it to their preference on the Web site, by date, description or amount. The SmartCheck payment option available on the site provides a convenient, online way for Cardmembers to pay their Discover Card bill.

THE REAL THING

American consumers love ATM cards but they like visiting a teller better. This was the recent finding of a survey released this month by NCR Corporation. The survey found:

• 73 percent of people make deposits via a bank teller.
  
• 62 percent use ATMs.
  
• 48 percent telephone their bank at least once a month.
  
• 45 percent still visit a bank teller at least three times a month.
  
• 11 percent use a personal computer to do banking.
  

Nearly half of the 25% of Americans with online access at home use their computer for banking. The survey was carried out for NCR by BMRB International, an independent research firm, which polled 1,237 adults in the USA by telephone.

IT WORKS

Total Research Corporation says it found, in a recent survey, that 6 out of 10 people claim spending more money with the company that offers their favorite loyalty program than they did before joining. The survey also noted that participants in airline and credit card programs were more likely than others to give more business to the company with the program. Credit card loyalty programs derived the greatest increase in usage with a 46% gain. The study also found that if the company were to discontinue its loyalty program, 60% said they would spend less with the company. Consumers reported that they participate in an average of 3.2 loyalty programs.

DIME VISA

The Dime Savings Bank of New York and First USA announced this month their plans to offer a new credit card, 'Dime Platinum VISA'. This new credit card will serve both Dime customers and it subsidiary, North American Mortgage Company. The no-annual-fee 'Dime Platinum Visa' will offer a 3.9% introductory annual percentage rate on purchases and balance transfers, and a go-to annual percentage rate of 9.9%, with credit limits ranging from $5,000 to $100,000. The card extends Platinum privileges including automatic purchase protection, exception travel accident insurance, emergency cash and airline ticket replacement, auto rental collision coverage and lost luggage protection.

FREE ATM ACCESS

If you have a Schwab Access Gold Visa debit card from Charles Schwab & Co., you can now withdraw cash from ATM's worldwide without incurring a service charge. Infact, if a fee is charged by the ATM's owner, Schwab will rebate the surcharge thus giving you an ATM withdraw with no net charges. Schwab Access is a new cash management account providing online checking. Schwab Access is available exclusively to Schwab Signature Services™ clients.