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By Becky Yerak and Julie Wernau | TransUnion, the Chicago-based credit reporting agency controlled by the
Pritzker family, is getting a new majority owner.
Chicago-based private equity firm Madison Dearborn Partners LLC
announced Thursday it will acquire a 51 percent stake in TransUnion, one
of three major credit bureaus that collect data on the borrowing and
bill-paying habits of consumers.
Dow Jones Newswires | Discover Financial Services said its
earnings in the second quarter would be reduced by 13 cents a share, as
the company repaid $1.2 billion it got last year from the U.S. Treasury
Department’s Troubled Asset Relief Program.
Associated Press via NYTimes | Discover Financial Services said in a regulatory filing
Thursday that its loan losses slowed in March, as more customers were
timely on their credit card payments.
Get the full story: nytimes.com.
From Bloomberg | Bank of America said
overdue credit-card loans fell in February to their lowest in more than a
year, signaling declining write-offs ahead after 2009’s record losses. The top six U.S. card lenders typically report write-off and delinquency
data on the 15th of each month. Earlier today, Capital One Financial
Corp., based in McLean, Virginia, and Riverwoods, Illinois-based
Discover Financial Services, also posted declines in overdue loans.
Bank of America reports first-quarter results tomorrow.
Get the full story: businessweek.com.
From the Chicago Daily Herald | Discover Bank, a unit of Riverwoods-based Discover Financial Services,
may sell $500 million of 10-year notes, according to a person familiar
with the offering.
Get the full story: dailyherald.com.
From CardRatings.com | As part of a plan to raise cash by liquidating some private label and affinity products, Citigroup CEO Vikram Pandit said Citi’s Sears Holdings card accounts and other products are on the auction block.
Get the full story: cardratings.com
(AP Photo/Elaine Thompson)
Associated Press | Now that it will be easier to find your free credit report, you may be curious about who else can see it and how it can be used.
Starting Friday, a new Federal Trade Commission rule will require Web sites advertising free reports from agencies such as Chicago-based TransUnion to direct consumers to the government-approved www.annualcreditreport.com. TV and radio ads must do the same starting Sept. 1.
The problem is that these ads typically don’t disclose that the advertised free reports are part of a package of services that can cost as much as $14.95 a month. Consumers may not realize they can get free reports with no strings attached.
From BusinessWeek | Discover Financial Services and other credit card companies are complaining that China is violating trade rules by blocking them from its $723 billion payment-processing market. According to Trade Representative Ron Kirk, the U.S. hasn’t decided whether to file a complaint with the World Trade Organization about restrictions that block U.S. credit card companies like Riverwoods-based Discover from processing credit- and debit-card transactions in China.
Get the full story: businessweek.com.
Associated Press | A computer hacker from Florida was sentenced
Thursday to 20 years in prison for helping engineer one of the largest
thefts of credit and debit card numbers in U.S. history.
U.S. District Judge Patti Saris sentenced Albert Gonzalez of Miami, who
pleaded guilty last year to breaking into computer systems of major
retailers, including Naperville-based Office Max, as well as TJX Cos. and BJ’s Wholesale Club.
Associated Press | A computer hacker who helped orchestrate one
of the largest thefts of credit and debit card numbers in U.S. history
faces sentencing this week for hacking into computer systems of major
retailers, including TJX Cos., BJ’s Wholesale Club and Sports Authority.
Prosecutors plan to ask for a 25-year prison sentence for Albert
Gonzalez, a former federal informant from Miami who pleaded guilty last
year in three hacking cases brought in Massachusetts, New Jersey and New
York.
(Warren Skalski/Chicago Tribune)
Associated Press | Discover Financial Services says ongoing loan losses led it to lose money in the first three months of the year and fall well short of analyst forecasts.
The company says it lost $104 million, or 22 cents per share, for the three months that ended Feb. 28. That compares with a profit of $120.4 million, or 25 cents per share, in the period a year earlier.
Associated Press | Authorities have smashed one of the world’s biggest networks of
virus-infected computers. It was a data vacuum that stole credit cards
and online banking credentials from as many as 12.7 million poisoned
PCs.
The “botnet” of infected computers included PCs inside more than half
of the Fortune 1,000 companies. More than 40 major banks were
infiltrated, according to investigators.
By Becky Yerak | Discover Financial Services Inc., the Riverwoods-based credit card company, said Chief Executive David Nelms received total compensation of almost $3.3 million in 2009. That was down 43 percent from 2008, according to the company’s recently-filed proxy statement.
The compensation consisted of $1 million in salary and nearly $2.3 million in equity.
Last March, the U.S. Treasury Department invested $1.2 billion in Discover preferred stock and common stock warrants under the Troubled Asset Relief Program.
| Associated Press | The new credit card law is finally here. Starting today, banks will need to abide by new regulations on terms and disclosures. The idea behind the landmark law was to prevent banks from using practices that often dug borrowers deeper into debt.
Here’s a look at how the credit card law affects key aspects of your account |
See also • MarksJarvis: Old tricks end, but new fees sting |
Last month, the Chicago Tribune’s Problem Solver Jon Yates warned readers that credit card companies might be increasing their rates and fees before the CARD Act kicks in on Feb. 22. On Feb. 13, Citibank sent select customers a letter telling them about a
new $60 annual fee that goes into effect on Apr. 1.
Get the full story: Citibank’s new $60 annual fee.
