Consumer/Retail

• PR - Equifax Releases Enhanced Online Credit Report
  Underscoring its longstanding commitment to be the leading innovator in online credit information, Equifax Inc. (NYSE: EFX) today announced that it has enhanced the online versions of the Equifax Credit Report. The improved format provides consumers with a clear and easy way to understand the contents of their credit report. Under the new format, the front page of the credit report will now provide a detailed summary of a consumer's credit history, including accounts, debt- to-credit ratios, account age, and potential negative credit histories -- all on one page. Each section also contains a brief explanation for consumers to help them better understand the information. Click here to see a sample of the Equifax Credit Report: https://www.econsumer.equifax.com/otc/sampleProductView.ehtml?prod_cd=CPO Equifax Personal Solutions was the first in its industry to offer its reports to consumers via the Internet in 2001. Since then, millions of Americans have accessed their Equifax Credit Report as a way to better understand their credit health and monitor their credit report to identify signs of potential identity theft or to dispute possible errors on their credit file. Equifax regularly enlists research and consumer input to provide feedback on its products. These consumer panels were the source of the ideas that led to making the Equifax Credit Report even easier and clearer to understand and read. "We learned that most consumers pulled their credit report to evaluate their own credit standing," said Steve Ely, President of Equifax Personal Solutions. "To help them achieve that goal, the new format lets them understand what they need to know about their credit at a glance." The new format is available on the Equifax Credit Report (a new version for the Equifax 3-in-1 Credit Report, which includes credit information from all three national credit reporting companies, is due in early 2008). Both reports, as well as Equifax's other products (including Equifax Credit Watch, Score Watch and Score Power), are available at www.equifax.com . Consumers may also receive the Equifax Credit Report when they visit www.annualcreditreport.com, the federally authorized website where consumers may receive their credit report from each of the three nationwide credit reporting companies once a year at no charge.
• Spending Accounts May Lower Private Practice Debt
  More employers are linking debit cards and automatic reimbursement services to their health care flexible spending accounts (FSA), according to human resources consulting firm Mercer. The trend could help health care providers in private practice curb rising bad debt trends. But it is seen as having little impact on the debt of hospitals and ambulatory surgical centers, experts say. “It probably won’t make a dramatic difference,” said Alexander Domaszewicz, a principal with Mercer, a subsidiary of Marsh & McLennan Companies. FSAs allow employees to set aside money from their paycheck on a pre-tax basis for medical expenses not covered by insurance such as co-pays, deductibles, eyeglasses and over-the-counter drugs. Federal law requires FSAs to be linked to an insurance plan. Fewer than 30 percent of U.S. employees contribute to FSAs, according to Mercer. Many experts say it’s because federal law requires that funds unclaimed within the allotted time be forfeited. However, the number of people using FSAs and the amount they are setting aside is trending upwards, Domaszewicz said. So are the number of employers offering debit card access to FSAs or automatic reimbursement from employees’ FSAs when their health care provider files a claim, he said. Users can swipe their debit cards at the point of service, immediately accessing the maximum amount of money they’ve set aside in their FSA accounts, rather than paying for a service or medicine and submitting a claim, Domaszewicz said. Similarly, the automatic reimbursement option allows for a payment from an employee’s FSA when a qualified healthcare provider submits a claim, eliminating the need for the patient to do so. Consumers like the convenience and reassurance debit cards and automatic reimbursements provide. And health care providers benefit from having fewer outstanding account receivables. “Debit cards give people a sense that things will be paid and that they can more easily access their money,” Domaszewicz said. “If you add a debit card (to FSA benefits) it increases participation and the amount of money people put into an FSA.” Still, healthcare industry experts say hospitals aren’t likely to realize similar benefits in bad debt reduction that private practices may, primarily because most bad debt expense at U.S. hospitals comes from treating uninsured patients seeking emergency treatment. And contributions to FSAs, which averaged about $1,450 per employee, generally aren’t enough to cover known medical expenses and emergencies. “The services hospitals are providing tend to cost more,” said Michael Klozotsky, healthcare analyst for Kaulkin Media’s Analyst Group. He added, “An FSA is not going to help if your appendix burst and you had no idea it would happen.”
• PR - Bankrate Purchases Nationwide Card Services and Savingforcollege.com
  Bankrate, Inc. (Nasdaq: RATE) announced this week it has acquired two companies in separate transactions. The first company, Memphis-based Nationwide Card Services, Inc. (NCS) markets a comprehensive line of consumer and business credit cards via the Internet. NCS's clients include the top financial institutions and credit card issuers. The purchase price is $26.4 million in cash with an additional $7.0 million in potential earn-out based on achieving specific financial performance metrics over the next two years. "The acquisition of NCS adds breadth to one of the important channels we've targeted for growth," said Thomas R. Evans, President and CEO of Bankrate, Inc. "NCS's affiliate network and strong platform, combined with our organic traffic, should provide the foundation for significant revenue growth in our credit card channel and a much better credit card offering to our consumers," Mr. Evans stated. NCS is managed by Robert and Scott Langdon, who founded the company in 2001. The Company has steadily grown since inception and is now recognized as one of the premier Internet credit card application networks in the industry. NCS will continue to operate out of the company's headquarters in Memphis, TN. Both Robert and Scott Langdon will continue with the company as will the entire 23 person Memphis-based staff.In a separate transaction, Bankrate also announced that it has acquired Savingforcollege.com LLC, a privately owned business run by college finance industry specialist, Joseph Hurley. The business was acquired for $2.25 million in cash and an earn out of $2.0 million for the achievement of certain performance metrics over the next two years.Savingforcollege.com is the premier Internet destination for objective information about 529 college savings plans. The site is designed to help consumers and financial professionals learn more about options for college financing. The acquisition also provides Bankrate with copyright ownership of Mr. Hurley's highly regarded books, guides and other industry publications such as "Family Guide to College Savings", widely recognized as the industry standard. Savingforcollege.com is located in Rochester, New York. All operations will continue in the Rochester office. The acquisition was completed after the financial markets closed on Wednesday, December 5, 2007."With college finance a growing concern for many consumers, we believe Savingforcollege.com is a valuable addition to Bankrate's offering," said Joseph Hurley, founder of Savingforcollege.com. "We look forward to expanding the college finance channel and are thrilled to be joining the Bankrate team," Mr. Hurley commented.Bankrate expects both of the acquisitions to be accretive in 2008.
• PR - Fed Reports More than Two-Thirds of Noncash Payments are Electronic
  The Federal Reserve’s 2007 study of noncash payments released today revealed that in 2006 more than two-thirds of all U.S noncash payments were made electronically. From 2003 to 2006, the period covered by the study, all types of electronic payments grew while check payments decreased. The Federal Reserve’s 2004 Payments Study found that the number of electronic payments and check payments were roughly equal in 2003. About 19 billion more electronic payments were made in 2006 than in 2003. In contrast, the number of checks paid fell by about 7 billion over the