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Loyalty and private-label card issuer Alliance Data Corp., which reported its first-quarter earnings last week (CardLine, 4/24), says its card programs likely will not be affected by upcoming credit card legislation that seeks to restrict how issuers charge fees to cardholders. During a conference call with analysts, Banc of America Securities.-Merrill Lynch analyst James Kissane asked if the legislation would have any impact on Alliance Data programs. In response, Ed Heffernan, Alliance Data executive vice president and chief financial officer, said it would have "no material impact" on its 100 private-label programs. Some of the legislation relates to grace period, and some issuers have grace periods of only 14 days, while the legislation is asking for an extension to 21 days, he said. "We don't have anything less than 25," Heffernan noted. And other restrictions also would not apply. "We don't' do double-cycle billing," Heffernan said. "[The legislation has] all of these things about over-the-limit fees. We don't have that. Since we are private-label, there is no such thing."
