Consumer/Retail

Southwest Credit Achieves PCI DSS Level 1 Compliance

2009-11-06T02:35:51-07:00

Plano, TX - Southwest Credit Systems, L.P. a national provider of accounts receivable solutions is proud to have achieved Payment Card Industry Data Security Standard (PCI-DSS) Level 1 compliance through a Qualified Security Assessor.

The PCI DSS is a multifaceted security standard that includes requirements for security management, policies, procedures, network architecture, software design and other critical protective measures. This comprehensive standard is intended to help organizations processing credit card payments proactively protect customer account data.

By achieving PCI Compliance Southwest Credit continues to demonstrate clients and prospects their commitment to quality and compliance; as well as the focus placed on protecting their customers’ data by adhering to the proper rules and regulations.

“Performing with integrity is the bedrock of everything we do at Southwest Credit”, said Jeff Hurt, CEO “and safeguarding our customers’ information is our top priority”.

We are proud of the continuous investments we have made in technology and the rigorous audits of our processes by accredited third parties which demonstrate that we operate at the highest levels within the collections industry.

About Southwest Credit
Founded in 1974, Southwest Credit Systems L.P. is a national provider of accounts receivable management services to small and large companies in the Communications, Education, Utility, Government, and Financial Services industries. Southwest Credit services consumer and commercial accounts along various stages of the credit and collection process.
The company bases its service philosophy on their mission statement:

“At Southwest Credit, our goal is to provide our chosen partners with professional accounts receivable solutions based on Value, Integrity, and Performance.”

Southwest Credit is SAS 70 Type II Certified and has a Better Business Bureau rating of A+. For more information contact 1.800.637.7439 or visit www.sw-credit.com

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Equifax Helps Financial Institutions Improve Account Management Productivity Across Portfolios

2009-11-06T08:13:41-07:00

BOSTON -- Equifax Inc. (NYSE: EFX) today announced at the BAI Retail Delivery Conference the launch of a new solutionto help banks and financial institutions drive increased return-on-investment from their portfolio review processes. InterConnect for Account Management(TM) enables banks to automate account segmentation and risk decisioning for credit line adjustments and cross-sell offers. Now, banks can better identify customers most likely to accept product and service offers, resulting in increased cross-sell acceptance rates and improved customer retention.

"Providing this automation as a hosted solution will make it possible for more institutions to see the advantages of customer-centric decisioning," said James Taylor, CEO of Decision Management Solutions, a consulting firm focused on helping companies adopt decisioning technologies. "With complete control over credit policies, portfolio segmentation and customer treatment and no software to install, lenders can maximize their agility and keep their operating costs down."

While financial institutions historically have leveraged these types of tools with their credit card portfolios, many have considered them too complex and costly to use when managing deposit accounts. According to the Federal Deposit Insurance Corporation, the percent of increase year-over-year in total deposits for both commercial banks and savings institutions was approximately 27.4 percent from June 2005 to June 2009. Recent Equifax research has shown that while consumer debt has declined year-over-year more than $440B since 2000, the average personal savings rate reached its highest levels in the past decade during Q2 and Q3 2009.

InterConnect for Account Management enables banks to cost-effectively evaluate portfolio changes in both credit and deposit accounts - resulting in a comprehensive view of customers and their relationships with the financial institution. The solution provides a consolidated look at each customer within the portfolio and segments these customers based on behavioral and transactional data from Equifax, third-party sources and internal databases.

With this insight, banks can better measure individual risk and assess the overall ROI associated with an account.

"Current economic pressures make consistent account management especially important for today's financial institutions, which must address increasing regulatory requirements and respond quickly to changing market needs," said Dann Adams, president, US Information Solutions. "Our new solution provides the flexibility lenders need to accurately segment their portfolios and optimize credit risk decisions to reflect evolving market conditions and business priorities. Those that do stand a greater chance of winning the battle for reduced risk and profitable growth over time."

Financial institutions that adopt InterConnect for Account Management gain access to actionable customer intelligence delivered in real-time from internal and external databases. Leveraging business rules technology, the solution automates account-level decisions for:

Credit line assignments
Exception handling and compliance reporting
Implementation of new risk policies
Cross-sell and product optimization

Other benefits of the solution include its flexible suite of modules for data integration, decision management, rules editing and reporting which can be easily deployed, allowing businesses to respond quickly to market changes. The solution's comprehensive reporting tools enable financial institutions to view credit risk as well as transaction and operational activity to identify emerging trends.

InterConnect for Account Management is the latest addition to Equifax's Technology and Analytical solutions, which include loan origination, credit risk decisioning, fraud prevention and account opening products. For more information about InterConnect and other Equifax technology solutions, visit www.equifax.com/consumer/risk/account_opening/appro/en_us .

About Equifax Inc. (www.equifax.com)
Equifax empowers businesses and consumers with information they can trust. A global leader in information solutions, we leverage one of the largest sources of consumer and commercial data, along with advanced analytics and proprietary technology, to create customized insights that enrich both the performance of businesses and the lives of consumers.

With a strong heritage of innovation and leadership, Equifax continuously delivers innovative solutions with the highest integrity and reliability. Businesses - large and small - rely on us for consumer and business credit intelligence, portfolio management, fraud detection, decisioning technology, marketing tools, and much more. We empower individual consumers to manage their personal credit information, protect their identity, and maximize their financial well-being.

Headquartered in Atlanta, Georgia, Equifax Inc. operates in the U.S. and 14 other countries throughout North America, Latin America and Europe. Equifax is a member of Standard & Poor's (S&P) 500® Index. Our common stock is traded on the New York Stock Exchange under the symbol EFX.

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As the Health Care Debate Rages On, Health Savings Accounts (HSAs) Continue to Gain in Popularity

2009-11-06T08:13:41-07:00

While the nation's lawmakers debate possible ways to improve the health care system, a national consumer organization reports that thousands of Americans apparently believe they've already found an answer: Health Savings Accounts (http://usafact.org/HSA-HealthSavingsAccountforMedicalinsurance.html) (commonly known as HSAs).

"An HSA is a lot like an IRA," explains Vicki Rolens, managing director of the Federation of American Consumers and Travelers (FACT). "The money you put into the account offers above-the-line deductibility, reducing your adjusted gross income and thereby reducing your tax burden each year."

She adds that "There is one main difference between an IRA and an HSA: With an HSA, you are allowed to make tax-free withdrawals at any time to meet medical expenses that your health insurance doesn't cover."

In a bulletin to its members, entitled "How a Health Savings Account Can Save You Money and Simplify Your Life," FACT briefly outlines HSA basics:

   1. The consumer purchases a high-deductible health insurance plan (HDHP), which costs less -- often far less -- than a "conventional" health plan.

   2. Part or all of the money saved on premiums -- and saved on taxes --can then go into a tax-free health savings account (HSA). The account belongs to the consumer, not the insurance company.

   3 If a health issue arises, the consumer uses his or her HSA to pay any qualified expenses which the high-deductible plan doesn't cover. The money is withdrawn tax-free.

    4. In general, "qualified" expenses include dental bills, over-the-counter medicines, prescription drugs, eye care, hearing aids, and many other health-related items and services that the HDHP doesn't pay.

   5. All money remaining in the fund at retirement can be used to meet Medicare deductibles, long term care expenses, et al, or can simply be withdrawn -- without penalty if the consumer is over the age of 65.

   6. In 2010, an individual will be able to contribute up to $3,050 tax-free ... $6,150 for a family. The HSA can be opened in addition to any IRA the consumer may already have.

"The basic concept is simple," says Rolens. "You save money by having a higher health insurance deductible than usual, and you put that savings in a tax-free fund to meet medical expenses if and as needed."

"In essence, you pay a portion of your health-care budget to yourself instead of an insurance company, and you gain some distinct tax advantages in the process."

To qualify as an HDHP, a health plan's deductible amount must be at least $1,200 for an individual plan or $2,400 for family coverage.

Rolens points out that an HSA may not be right for everybody, and she recommends that anyone who's interested consult with his or her insurance expert or financial planner.

FACT is a consumer organization, formed under the not-for-profit corporation laws of the District of Columbia in 1984. It currently serves more than 1 million consumers nationwide. Additional information on FACT may be found in the Encyclopedia of Associations, and by visiting the association's Web site (www.usafact.org).

FACT's administrative office is located at 318 Hillsboro Avenue, Edwardsville, IL 62025.

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State Launching Major Crackdown on Debt Collectors

2009-11-03T07:59:14-07:00

Officials in Florida announced Tuesday that they are launching aggressive enforcement programs targeting illegal debt collection practices and recommending changes to state law that focus on accounts receivable management firms.

Florida Attorney General Bill McCollum and state Chief Financial Officer Alex Sink separately announced that their offices are proposing aggressive changes to state law to combat “abusive debt collectors.”

McCollum said that he wrote leaders in Florida’s legislature proposing legislative language would make certain debt collector practices a "per se" violation of the Florida Deceptive and Unfair Trade Practices Act, providing a clear basis for pursuing civil litigation.

“As Attorney General, I am willing to go above and beyond what the law currently requires so that people who have complained about abusive practices by debt collectors may finally get some relief,” said McCollum in a statement.

Sink offered a bulleted list of proposals for legislators centered on the handling of consumer complaints against debt collection agencies:

Reducing the number of complaints needed to refer an abusive collector to the State Attorney or Attorney General, and eliminating a time period required, as opposed to the current requirement of five complaints in one year.
Implementing stronger penalties against abusive or non-responsive debt collectors, such as imposing higher fines and cease and desist orders.
Changing the complaint form to make it easier for a consumer to file a complaint.
Updating the way resolved complaints are tracked by the Office of Financial Regulation to better understand repeat offenders and trends.

“There are clear, commonsense changes that are needed to better protect Florida’s consumers against these abusive debt collector practices,” said Sink. “I will continue to work in a collaborative way in order to put real teeth in the law and crack down on abusive debt collectors.”

Sink noted that her proposals stemmed from a meeting held last week between Office of Financial Regulation (OFR) Commissioner Tom Cardwell and the Chiefs of Staff from the CFO’s and Attorney General’s offices.

McCollum and Sink have been embroiled in a public battle over debt collection complaints for weeks. The Orlando Sentinel sparked the skirmish after a series of reports detailed the abusive practices of some debt collectors and the state's failure to accurately track complaints against collectors and stop the practices.

McCollum and Sink are considered to be the front-runners in the Florida Governor’s race, the election for which is scheduled for November 2010.

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Survey Shows that Consumers Opt Against Charging Holiday Purchases

2009-11-02T08:15:22-07:00

Silver Spring, MD – Even though many Americans personal finances are on life-support, the biggest spending season of the year is nonetheless fast approaching.

“Arguably, consumers are faced with spending decisions unlike ever before,” said Gail Cunningham, spokesperson for the National Foundation for Credit Counseling (NFCC). “Many have had their access to credit limited by issuers closing accounts or restricting credit lines. Others have self-imposed spending restrictions, instead choosing to pay down existing debt. However, the holiday season may be in a category of its own, tempting consumers to revert to old spending habits of days gone by.”

In October, the NFCC posed the following question and answer options regarding paying for holiday purchases on their Web site, www.DebtAdvice.org. Over 3,800 respondents weighed in.

I intend to pay for my holiday spending by

    A. Paying cash for my purchases = 68%
   B. Charging my purchases, and paying the bill in full when it arrives = 12%
   C. Charging my purchases, and paying for them over time = 10%
   D. Utilizing lay-away programs = 10%

The overwhelming majority of respondents, 68 percent, indicated that they intend to pay for holiday spending with cash. However, the NFCC’s 2009 Financial Literacy Survey revealed that one-third of all Americans have zero dollars in savings. Further, the holiday season has historically been a time when many consumers piled new debt on top of old, some still paying for holiday spending from the previous year.

What conclusions can be drawn? The implications of the October survey could indicate that Americans are well-meaning, but those intentions may not translate into reality when they hit the stores. With no savings and a lack of preparation for holiday spending, consumers will likely revert back to charging their purchases…if charging privileges are still open to them.

“While the holiday season is known as a make or break period for the retailers, it is the same situation for many Americans who are already struggling to make ends meet. Spending during the next two months can make or break them financially, with the ramifications of poor decisions following them for months or years. This is likely to be a holiday shopping season unlike any in recent history, with none of us knowing the outcome until the data arrives in January. It is our hope that consumers shop wisely, remembering that digging a financial hole is not a gift to anyone,” Cunningham continued.If you need help balancing the reality of your budget with the demands of the holiday season, reach out to an NFCC Member Agency. To locate the agency closest to you, dial toll-free to (800) 388-2227, or for assistance in Spanish, call (800) 682-9832. To find an agency online, go to www.DebtAdvice.org.

The National Foundation for Credit Counseling (NFCC), founded in 1951, is the nation’s largest and longest serving national nonprofit credit counseling organization. The NFCC’s mission is to promote the national agenda for financially responsible behavior and build capacity for its members to deliver the highest quality financial education and counseling services. NFCC Members annually help more than three million consumers through close to 850 community-based offices nationwide. For free and affordable confidential advice through a reputable NFCC Member, call (800) 388-2227, (en Español (800) 682-9832) or visit www.nfcc.org.

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Debt Settlement Industry to FTC: We Provide Valuable Service to Consumers

2009-10-29T07:19:11-07:00

MADISON, Wis.— Concerned about proposed federal rules that would effectively eliminate its industry, The Association of Settlement Companies (TASC) recently provided the Federal Trade Commission data that supports the value of debt settlement to consumers in response to the agency’s proposed changes to the Telemarketing Sales Rule (TSR).

The FTC is seeking to create amendments—including a ban of advance fees—that would effectively eliminate a viable option for consumers who are struggling with unsecured debt. TASC outlined in a brief historical performance data that clearly illustrates the economic value its member companies deliver to consumers enrolled in debt settlement programs.

For example, based on a recent data analysis of its members, TASC estimates its members settled more than 94,000 accounts representing more than $553 million in debt in the first 6 months of 2009. This is an annual rate of more $1.1 billion in debt settled by TASC members for just 2009.

“We firmly believe that debt settlement should remain an option for those tens of thousands of consumers each year who choose debt settlement as their preferred—and often only available—program to handle their financial situation,” Chris Kesterson, President of TASC, said. “In our response to the FTC, we clearly demonstrate the value consumers receive from our companies who work diligently on their behalf each day to negotiate settlements with creditors.”

TASC is the leading trade group of the debt settlement industry. The cornerstone of TASC’s mission as an organization has always been to promote fair legislation at the state and federal level designed to protect the consumer and to promote best practices of operations by its members.

Without advance fees, debt settlement companies would have to work for free for the duration of the settlement process, which typically takes three years. No company in any industry could accept this, Kesterson pointed out.

“We look forward to working with the FTC in exploring appropriate and comprehensive ways to regulate the entire debt settlement industry, rather than only one segment,” Kesterson said.

The FTC will play host to a public forum on Nov. 4. To view TASC’s brief, please visit www.tascsite.org/pdfs/TASC_Comment_Letter.PDF.

About The Association of Settlement Companies
The Association of Settlement Companies (TASC) promotes fair business practices, consumer protection and industry standards for the debt settlement industry. TASC, founded in 2005, serves to protect consumers through an organization seal that represents best practices and standards of reputable companies. The organization also protects its member companies through lobbying efforts at the state and national levels, as well as awareness initiatives to educate consumers on debt settlement as a financial solution. All TASC member companies pledge compliance to strict association bylaws governing business practices and ethics. For more information, visit www.tascsite.org.

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As Some Top Metro Foreclosure Activity Rates Decrease, New Foreclosure Hot Spots Emerge in Q3

2009-10-28T06:07:38-07:00

IRVINE, Calif. – RealtyTrac® (www.realtytrac.com), the leading online marketplace for foreclosure properties, today released its Q3 2009 Metropolitan Foreclosure Market Report, which shows that cities in California, Florida and Nevada accounted for the 10 highest foreclosure rates in the third quarter among metro areas with a population of 200,000 or more.

But five of those Top 10 metro areas reported decreasing foreclosure activity from the third quarter of 2008, while many other metro areas with Top 50 foreclosure rates reported sharp increases in foreclosure activity.

“Rising unemployment and a new variety of mortgage resets continued to gradually shift the nation’s foreclosure epicenters in the third quarter away from the hot spots of the last two years and toward some metro areas that had avoided the brunt of the first foreclosure wave,” said James J. Saccacio, chief executive officer of RealtyTrac. “While toxic subprime mortgages drove much of that first wave of foreclosures, high unemployment and exotic Alt-A Option ARMs are spreading the foreclosure flood to more metro areas in 2009.”

New foreclosure hot spots flare up

Among the top 50 metro foreclosure rates, the three biggest year-over-year increases were in Boise City-Nampa, Idaho, and Provo-Orem and Salt Lake City in Utah. In several states the largest increases were posted in cities not previously a focal point for foreclosure activity. The Chico metro area posted the biggest year-over-year increase in California, with foreclosure activity up 98 percent from the third quarter of 2008. The medium-sized metro about 100 miles north of Sacramento had a 12.8 percent unemployment rate in August, above the state and national averages.

A similar trend was seen in cities like Reno-Sparks, Nev., with an 80 percent year-over-year increase in foreclosure activity, Prescott, Ariz., with a 77 percent increase, Jacksonville, Fla., with a 64 percent increase, Rockford, Ill., with a 64 percent increase, and Lansing-East Lansing, Mich., with a 41 percent increase.

Top metro foreclosure rates

Las Vegas posted the nation’s highest metro foreclosure rate, with 5..13 percent (one in 20) of its housing units receiving a foreclosure filing during the quarter — nearly seven times the national average. A total of 40,408 Las Vegas properties received a foreclosure filing during the quarter, an increase of nearly 9 percent from the previous quarter and an increase of nearly 54 percent from the third quarter of 2008.

Despite a 13 percent decrease in foreclosure activity from the previous quarter, Merced, Calif., posted the nation’s second highest foreclosure rate, with 3.72 percent (one in 27) of its housing units receiving a foreclosure filing during the third quarter. A total of 3,092 Merced properties received a foreclosure filing during the quarter, down 11 percent from the third quarter of 2008.

Foreclosure activity in the Cape Coral-Fort Myers metro area in Florida also decreased from the previous quarter and from the third quarter of 2008, but the metro area still registered the nation’s third highest metro foreclosure rate — with 3.67 percent (one in 27) of its housing units receiving a foreclosure filing during the quarter. A total of 13,206 Cape Coral-Fort Myers properties received a foreclosure filing during the quarter, a decrease of 5 percent from the previous quarter and down 2 percent from the third quarter of 2008.

Other metro areas in the top 10 were the California cities of Stockton (3.53 percent), Modesto (3.39 percent), Riverside-San Bernardino (3.37 percent), Bakersfield (2.88 percent), and Vallejo-Fairfield (2.85 percent), along with the Reno-Sparks metro area in Nevada (2.67 percent) and the Florida metro areas of Port St. Lucie (2.63 percent) and Orlando-Kissimmee (2.57 percent).

Report methodology

The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing reported during the third quarter of 2009. Data is also available at the individual county level and MSA level. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90 percent of the U.S. population. RealtyTrac’s report incorporates documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). If more than one foreclosure document is filed against a property during the quarter, only the most recent filing is counted in the report.

About RealtyTrac Inc.
RealtyTrac (www.realtytrac.com) is the leading online marketplace of foreclosure properties, with more than 1.5 million default, auction and bank-owned listings from over 2,200 U.S. counties, along with detailed property, loan and home sales data. Hosting more than 3 million unique monthly visitors, RealtyTrac provides innovative technology solutions and practical education resources to facilitate buying, selling and investing in real estate. RealtyTrac’s foreclosure data has also been used by the Federal Reserve, FBI, U.S. Senate Joint Economic Committee and Banking Committee, U..S. Treasury Department, and numerous state housing and banking departments to help evaluate foreclosure trends and address policy issues related to foreclosures.

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Webrecon to Scrub Every Collection Database Industry-Wide for Free

2009-10-26T07:20:44-07:00

Grand Rapids, MI – They’re giving it all away, for free.

In an effort to combat the exploding number of FDCPA lawsuits plaguing American collection agencies, law firms and debt buyers, WebRecon LLC has announced an offer to scrub every collection firm’s consumer database, free of charge and with no further commitment or obligation. The offer covers each firm’s entire database, or up to 5 million consumers per company.

“Nearly 1000 new litigants are emerging every month, and 2009 is on track for a 40% spike in the number of FDCPA/FCRA lawsuits over 2008,” says company CEO Jack Gordon, who is a former collection agency owner himself.

He adds, “Debt collectors are under attack seemingly from every corner – radicalized debtors, consumer attorneys, federal agencies, Congress, state legislators, state attorney generals and the media. I am looking to give those who are the most besieged something of extraordinary value.”

Every lawsuit prevented can save many thousands of dollars. According to Gordon, a typical agency can identify dozens or even hundreds of prior litigants and head off any potential impending action from them.

The service, which is priced lower than the cost of defending or settling a single typical lawsuit per year, includes four components to help agencies identify prior litigants:

A searchable database of consumer lawsuits to find individual litigants, defendants or attorneys
A batch process that can segregate prior litigants at the rate of one million accounts per hour
A semi-monthly spreadsheet of all new litigation
The semi-monthly ‘Litigant Hotsheet’ which quickly identifies the most active consumer litigants

The companies that take advantage of this offer will have the option, at the end of the free scrub, to continue with the month-to-month service.

“Of course, I hope many of them will choose to stay on,” said Gordon, “but even if they just try it out and find some value from their initial scrubs, I will be happy to see them benefit from denying the professional litigants out there additional opportunities to extort money from our industry.”

Any collection firms who wish to learn more can visit www.webrecon.com/free

This offer expires on December 31, 2009, and slots are expected to fill up quickly.

About WebRecon LLC:
Creditors and collection firms use WebRecon’s services to easily segregate predictably litigious consumers from their databases. A significant percentage of consumer litigation is initiated by the same consumers over and over again, and screening them out of the general population can reduce lawsuits by as much as a third.

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History of Consumer Complaints About Debt Collection Services

2009-10-26T07:20:44-07:00

U.S. Debt Collection Agencies: An Industry Analysis Report

This report examines the $12 billion business of debt collection agencies. Complaints by consumers about harassment by collectors still exists and tops the list of complaints to the FTC. With the recession, it has gotten worse, since it has become more difficult to collect on (liquidate) accounts. Many consumers are out of work or struggling to pay for the necessities and have no funds to repay debts.(http://www.bharatbook.com/Market-Research-Reports/US-Debt-Collection-Agencies-An-Industry-Analysis.html)

Collections is a fragmented business of 6,500 mostly small firms. Major consolidation has taken place amongst collections agencies since the late 1990’s, and one firm, NCO Financial Systems, now accounts for $1.5 billion in sales, by virtue of acquiring its biggest competitor (OSI Solutions). Technology is making firms more efficient and profitability had risen until the recession hit. After a period of strong growth from 1999-2004, top-line revenue growth has slowed substantially – only 1.6% last year. Future growth will have to come from untapped niche segments such as healthcare accounts, legal, cell phone bills, municipal government, and outsourced IRS tax debt.

The study examines industry revenues/growth, competitor profiles/rankings, consumer debt trends and industry issues, extensive operating ratios, etc. Covers national revenues (1987-2007 actual, 2008 & 2009 estimates, 2013 forecasts), latest Census data industry operating ratios. The study examines consumer debt trends, the debt buying market, outsourcing, status of IRS tax debt business, market segments, delinquencies and bankruptcy trends, and more.

To know more and to buy a copy of your report feel free to visit :http://www.bharatbook.com/Market-Research-Reports/US-Debt-Collection-Agencies-An-Industry-Analysis.html

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ABA Comments on House Committee Pasage of H.R. 3639, the Expedited Card Reform for Consumer Act of 2009

2009-10-23T07:52:01-07:00

WASHINGTON – Following passage of the Expedited CARD Reform for Consumers Act of 2009 (H.R. 3639) today by the House Financial Services Committee, ABA Senior Vice President and General Counsel Kenneth J. Clayton reiterated concerns that this legislation will increase the already substantial compliance burden on card issuers, cause massive confusion for cardholders and further restrict credit for consumers and small businesses.

“The CARD Act represents the most sweeping reform of the credit card industry in decades and requires a major overhaul of intricate business practices by card issuers,” said Clayton. “Banks are working diligently to implement the CARD Act by next February, as Congress required, but it would be extremely difficult, if not impossible, for them to meet the new deadline contemplated by this bill. Moving up the implementation date will place additional strain on institutions and is likely to further restrict access to credit at a time when consumers, small businesses and the broader economy need it the most.”

Significantly, federal regulators are still in the process of finalizing rules pursuant to the CARD Act. If H.R. 3639 were enacted it would create a scenario where card issuers are required to comply with rules that are not yet in place. This would expose banks to significant risk of litigation and also cause a lot of confusion for both banks and their customers. The result could be a dramatic pull-back in lending.

“Issuers need to focus on making the implementation process as seamless as possible for their customers,” said Clayton. “The accelerated timeframe and added complexity will have exactly the opposite effect, creating unnecessary problems for card issuers and making things more difficult for consumers.”

Clayton also noted that consumers are already protected from unexpected interest rate increases by a provision of the CARD Act that requires 45-day advance notice of any potential rate increase and gives cardholders the right to just say “no” to the increase. This provision took effect last month.

“Consumers are already protected by the new 45-day notice provision, raising the real question of whether further action is necessary given the downsides for both consumers and the broader economy.”

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Equifax to Acquire IXI Corporation

2009-10-22T07:12:59-07:00

ATLANTA -- Equifax Inc. (NYSE: EFX - News) announced today it has reached a definitive agreement to acquire IXI Corporation, a leader in collecting, analyzing and delivering consumer wealth and asset data. Equifax will pay $124 million in cash for the company.

With its proprietary measures of wealth, assets, income, spending and other data, IXI helps its clients better segment households, resulting in improved marketing and customer management. IXI's client base includes leading companies in the financial services industry (such as banks and brokerage firms) and emerging opportunities in the insurance and healthcare industries.

IXI's data, sourced through more than 95 leading banks, brokerage firms and other financial entities, is the most comprehensive database of invested and deposited consumer wealth in the country. IXI directly measures data on more than $10 trillion in U.S. consumer assets and investments, representing more than 42 percent of all U.S. consumer invested assets.

"Bringing together the differentiated data and analytic capabilities of each of the companies will allow us to deliver a deeper view of the consumer that includes wealth, credit, income, spending and other demographic data ," said Dann Adams, president, Equifax Consumer Information Solutions. "The caliber and breadth of intelligence and data we'll offer will significantly improve the opportunities for our clients to acquire, expand and retain customer relationships."

"We have worked closely with Equifax over the last 18 months and know their people, the solutions they offer, and their culture. I am convinced this will be a strong combination that will benefit customers and employees of both companies," said Tom Dailey, president and CEO of IXI.

IXI's unique capabilities combined with Equifax's expertise will allow the companies to offer more differentiated and in-depth income, wealth and other data, helping companies improve their marketing, collections, portfolio monitoring and customer management efforts across all product segments.

"This is a good match and our companies know each other well from a history of collaboration. Each of the companies excels in its particular area of the business; the skills and knowledge are complementary; and we serve similar customer bases," said Adams. "But the biggest beneficiaries will be our clients, who will have broader, deeper and more accurate customer information backed by a company with a strong tradition of protecting the security and integrity of the data entrusted to us."

The closing of the transaction is subject to the usual conditions and is expected to occur in the near future.

IXI was advised in the transaction by Wells Fargo Securities.

About Equifax (www.equifax.com)
Equifax empowers businesses and consumers with information they can trust. A global leader in information solutions, we leverage one of the largest sources of consumer and commercial data, along with advanced analytics and proprietary technology, to create customized insights that enrich both the performance of businesses and the lives of consumers.

With a strong heritage of innovation and leadership, Equifax continuously delivers innovative solutions with the highest integrity and reliability. Businesses - large and small - rely on us for consumer and business credit intelligence, portfolio management, fraud detection, decisioning technology, marketing tools, and much more. We empower individual consumers to manage their personal credit information, protect their identity, and maximize their financial well-being.

Headquartered in Atlanta, Equifax Inc. operates in the U.S. and 14 other countries throughout North America, Latin America and Europe. Equifax is a member of Standard & Poor's (S&P) 500® Index. Our common stock is traded on the New York Stock Exchange under the symbol EFX.

About IXI Corporation (www.IXIcorp.com)
For over 15 years, IXI has helped the nation's leading financial services and consumer marketing firms optimize marketing efforts, manage risk, identify growth markets, and enhance practice and performance management. IXI solutions enable marketing, sales, and risk management executives to differentiate and target consumer households based on measures of wealth, income, spending, credit, investment style, share-of-wallet, and share-of-market.

Through its exclusive network of more than 95 leading U.S. financial institutions, IXI directly measures approximately $10 trillion in U.S. consumer assets and investments, comprising over 42% of all U.S. invested assets. IXI combines its patented process for collecting and classifying consumer asset data with proprietary measures of income, spending, and credit, to create the most reliable and granular financial database available today. Using this unrivalled database, IXI builds solutions that provide firms financial and economic insight for every U.S. household.

IXI is a privately held company headquartered in McLean, Virginia. It was recently named to the Deloitte Touche 500 Fastest Growing Technology companies list.