AT&T lowers rate on cards a point to 15.4%

Article Abstract:

American Telephone and Telegraph Co is lowering the interest rate on its Universal Visa and Mastercard credit cards by one percentage point, to 15.4 percent , providing a competitive incentive for other credit card issuers to meet AT&T's rate cuts. The 15.4 percent rate applies to cardholders who hold charter membership in the Universal credit cards. Other AT and T cardholders' rates will be reduced from 17.4 to 16.4 percent. AT and T is working toward increasing its market share in the credit card business and increasing its interest earnings on charges held over one month. AT and T's cardholder debt has grown from $2.4 billion to $3.8 billion, but it still ranks 10th among credit card providers in outstanding balances even though it is the third largest Visa and MasterCard provider in the US.

Telephone communications, exc. radio, Prices and rates, Interest rates, Customer service, American Telephone and Telegraph Co., Price cutting, Competition, Visa (Credit card), MasterCard (Credit card)

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AT&T's Kahn quits as chief of card unit

Article Abstract:

AT and T Universal Card Services CEO Paul G. Kahn resigns over a difference in strategy. Kahn wanted to expand into other financial services, but was opposed by executives at parent company AT and T. The resignation stuns credit card executives, especially as Universal Card Services had recently won the Malcolm Baldridge National Quality Award. Still, analysts support AT and T for refusing to diversify away from its core telecommunications business. The parent company has always seen the credit card as a way to boost its long-distance calling business. Just two years after its launch in 1990, the card group had become second only to Citicorp among US issuers of bank credit cards. The resignation takes effect Mar 15, 1993. No successor is named.

Personal credit institutions, Officials and employees, Telecommunications services industry, Telecommunications industry, Appointments, resignations and dismissals, Credit and debit card industry, Credit card industry, Chief executive officers, Strategic Planning, Financial Services, Diversification, Credit Authorization, Resignation, AT&T Universal Card Services Corp., Kahn, Paul G.

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