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November 2nd, 2001, 03:51 PM #1
This from the November 1st Wall Street Journal, page B8 (The paper version):
Banking authorities imposed new lending restrictions on NextCard Inc. amid mounting losses from uncollectable debt, and the Internet credit-card issuer said it is seeking a buyer. The company has hired Goldman Sachs Group Inc. to sell the company to a larger, more established financial institution. (Stock info and trading volume info deleted, who cares) At the behest of banking regulators, NextCard, which was founded in 1997 and went public in 1999, is making a variety of changes at its NextBank unit that essentially eliminate the company's ability to grow
This looks very bad for their affiliate programs! The WSJ tends to report quite a ways in advance, so there MAY [NO guarantees!] be a few months left in this baby, but I figured I'd post it so everybody'd have a decent chance to bail if they want to!
Of course, something may come up and save their necks, but from reading that, I'd say it looks like doom in the making...
Edited to fix the bolding code.
[ 11-02-2001: Message edited by: Leader ]
November 2nd, 2001, 07:52 PM #2
- Join Date
- January 17th, 2005
Just received from NextCard.
We wanted to give you a heads up on the recent news from
NextCard and let you know how these announcements will affect
you as a NextCard Visa Affiliate. NextCard has announced that we
have engaged Goldman Sachs to explore opportunities for the sale
of the Company.
Here are some things you need to know:
1. NextCard has enough cash to honor its financial obligations
to our Affiliate partners. You will get paid as you normally
would. Checks and direct deposit payments will be processed
on their normal schedule. This includes all commissions for
October 2001 and any future commissions that you earn.
2. Any current bonus or incentive program in which you are
enrolled will remain in place at the current levels.
3. As of 10/31/01 NextCard has discontinued offering the
NextCard Secured Visa. You will be paid for all secured
card accounts generated prior to 10/31/01.
4. Beginning 10/31/01 NextCard is limiting approvals to
applicants that have a FICO credit score of 680 or greater.
This change will substantially decrease the number of Lite
bookings and, to a lesser extent, the number of Classic
bookings. There should not be any marked impact on Platinum
bookings. All leads generated prior to 10/31/01 are not
impacted by the changes.
You are an important business partner and we look forward to continuing
our relationship. Please feel free to send in any more specific questions you have
to the Affiliate Team at firstname.lastname@example.org.
The NextCard Affiliate Team
December 6th, 2001, 12:29 PM #3
- Join Date
- January 18th, 2005
- West Coast USA
So we just signed up.
Has anyone noticed a decrease in approvals?
What is the ROI in general?
[ 12-06-2001: Message edited by: Adam Ward ]
December 7th, 2001, 11:20 AM #4