J.P.Morgan just purchased the PVN Master Trust of $8.2 billion of cc receivables at a small premium. PVN is now left trying to unload the underpreforming loans as well as the overseas cc operations. No idea if you will get a Morgan card or not but they now have 27 million cc accounts.
That's an odd mix. JPMorgan is Chase. From the Providian website: "The sale of the Providian Master Trust enhances our capital, strengthens our liquidity position, and tightens our strategic focus on our middle market customers." I wonder if middle market is Prime or the in between Prime and not. I hope the latter. I wonder if our cra tradelines will eventually change from Providian to JPMorgan or Chase. Now that would be a HUGE improvement!
My take on this is PROVIDIAN JUST SOLD THE CROWN JEWELS. ``This is a seasoned portfolio with accounts averaging 51 months,'' added Mr. Srednicki. ``Of the $8.2 billion portfolio, 86% or $7.0 billion are 'platinum' cards while the remaining 14% or $1.2 billion are 'classic' cards.'' CONGRATULATIONS TO THE 3.3 MILLION providian account holders who will be making payments to by the end of the 1st quarter to JPMorgan/Chase. VJ
I am going to call Providian this afternoon and ask them what this means for me. If I could keep my current Sub-Prime card and it becomes a JP Morgan Chase account then I would start to use it, maybe once my credit report is finished it could become a platimum card.
I wonder if this will be a back door to Chase. I have been denied a Chase card now for 2 years. I do have a get smart Providian card though. Phyllis
Okay so now what..I just fired off a PFB letter complaining to Providian regarding a cl increase or a rate reduction...Does this mean anything for me who has a Providian Gold and a Getsmart Visa ?? Are these going to be turned over to Chase as well or will these still be handled by Providian.....
Right now the stock is selling for about 4.30. Anyone think it is worth it to buy some right now? Phyllis
Ok, I just read the press release, and I have a feeling that this will mean NOTHING for most Creditnet members. The bottom line is that Providian didn't sell all of their accounts to JP Morgan Chase -- they only sold their PRIME customers (what Providian has termed the "Providian Master Trust Portfolio"). Providian plans to retain its middle market and subprime customers. Here's the direct quote: "The sale of the Providian Master Trust enhances our capital, strengthens our liquidity position, and tightens our strategic focus on our middle market customers,'' Providian Chief Executive Joseph Saunders said in a statement. In other words, if anybody here has Providian Platinum, then it's "hello, Chase." Otherwise, it's "hello, Providian." Doc
Ok. talked with Providian. Of course, the main reps know nothing about it. But the supervisor said it's mostly Platinum cards being sold. The rest will stay with Providian. They'll contact cardholders being sold. That actually makes sense. I was once told that the Platinum cards are done by a different issuing bank from my Gold card and that's why Platinum upgrades were difficult (if not impossible) to get.
Thanks for checking, I'm at work and today has been pretty busy. I guess I still have the crappy providian card that I have never used. I'll probably close since they don't report.
Not my first guess but... It seems that the affected Providian accounts involve ONLY Providian NATIONAL BANK,located in New Hampshire, not Providian BANK,located in Utah. Again,to put this in prospective, out of Providian's entire 17.5 million cc accounts, this will only affect 3.3 million accounts, consisting of mostly Platinum(86%) and about 14% classic cards. Also mentioned; "Still, the Providian loans are of lower quality than the average J.P. Morgan credit card loan, the bank's Chief Financial Officer, Dina Dublon, told a conference call." VJ
Hmmm... I have a Providian Get Smart gold card - says on the back 'Providian National Bank'.... would be nifty to be a Chase customer if this was the case... =-) Ozzy.
This is why I LOVE this board. You took something, that the Stock Market Channel (the name escapes me right now), makes so difficult to understand, at least to us Stock Morons and explained it so I could understand! Thanks guys!
"J.P. Morgan, the No. 2 U.S. bank holding company, said it will pay a mid-single digit premium for the Providian master trust, which contains about 3.3 million in active card accounts. The bank said the loans are of higher quality, although Providian mostly has focused on lending to people with tarnished credit histories. Still, the Providian loans are of lower quality than the average J.P. Morgan credit card loan, the bank's Chief Financial Officer, Dina Dublon, told a conference call. San Francisco-based Providian's customers, who tend to have poor track records repaying loans, have been hurt harder than most by the U.S. recession. This has led to rising loan losses and slack demand at Providian. The company is cutting jobs and looking to sell parts of its large credit card portfolio to boost results. Its stock was the worst performer in the S&P 500 index last year, falling 94 percent." So, does that mean the newly frocked Chase customers will be flagged for extra scrutiny for a while lest they fall on their old Providian ways? I had an account sold to Household and I know for a fact that there are certain things that "native" HHB customers can do that I cannot. hmmm I have a Providian cards. One plat (Providian NH) the other is classic (Prividian CA) I wonder how that gets resolved.
Well, shoot...my card says it is issued by Providian NH OR Providian UT....wonder where that leaves me???? BTW, just saw this on another site, from the Wall St. Journal..."J.P. Morgan has disclosed it is owed some $2.6 billion in Enron-related exposure."
