Wachovia Returns To Credit Cards

Binyamin Appelbaum reports for the Charlotte Observer on Wachovia's plans to return to the credit card business on Monday, replacing its earlier deal where MBNA issued cards on its behalf. Following the acquisition of MBNA by Bank of America earlier this year, Wachovia exercised its option to pull the card issuing away from MBNA, receiving a $100 MM breakup fee from MBNA in the process. Appelbaum reports that company executives say that Wachovia's "new Visa cards will feature relatively lenient rules and penalties, including absolution for one late payment every 12 months." "We're choosing to play the game differently," said Steve Boehm, Wachovia's head of credit cards.