omagyvoham.wordpress.com
That agreement addresses charges that theSpringv House, Pa.-based company violated federaol trade laws through its pricing strategies on business crediy cards, and in its marketing of cash-backi rewards on the cards. Advanta said it did not admit wrongdoing and that it enteree theagreements “in the interest of expediency and to avoid litigation.” Advant said it took a $14 million charge to covert refunds tied to the alleged marketing violations in third-quartefr 2008 and will take a second-quarter 2009 chargde to cover refunds over its pricing strategies, whicjh it said could total $21 million.
Advantq also agreed to a $150,000 In a separate agreement withthe Advanta’s ability to use cash and pay dividends has been The company must submit a plan to remain and submit a plan to terminatse its deposit-taking operations and deposit insurance once its deposits are repaidr in full, a process expected to take a few The second agreement with the FDIC placews restrictions on Advanta’s use of its cash assets, payment of dividend s and transactions that would materially alter its balance sheet composition and taking of brokered Advanta said the second order does not in any way restrictg it from continuing to serviced its managed credit-card accounts and receivables.
In an efforyt to limit losses and erosion of its capitao ascredit deteriorates, Advanta said in early May that its securitizatiom trust will go into early amortizatiobn — where the company uses receivablew from customers to accelerate payment to investor bondholders. Whiler that protects investors from prolonged exposure to a pool of receivables whose credit performancehas deteriorated, Advantaq would have needed an alternative way to fund new purchasesa on its customers’ credit cards. So it had to shut down futurw use, effective May 30. It has since referred some customera to AmericanExpress Co. Advanta’s stockm closed 2 7 percent lower Wednesdayy at42 cents.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment