N A T I O N A
L B A N K
450 Winks Lane, Bensalem, Pennsylvania 19020
Writers Direct Dial: 215-638-6630
August 15, 2008
Jennifer J. Johnson, Secretary
Board of Governors of the Federal Reserve System
20th Street and Constitution Avenue, N.W.
Washington, DC 20551.
FACT Act Risk Based Pricing Rule
Docket No. R-1316
Dear Ms. Johnson:
I am writing on behalf of Spirit of America National Bank ("S O A N B") to comment on the
above-referenced proposal. As explained in more detail below, the proposal that the
risk-based pricing notice (or the credit score) be provided to the consumer seeking a
new credit card "before the first transaction is made under the plan" creates substantial
operational and cost issues for both credit card issuers and retailers. Additionally, the
proposal as drafted is unlikely to achieve the regulatory objective of inducing the
consumer to review his or her credit report before the credit card is first used. The Rule
should provide that the risk-based pricing notice (or credit score) is to be sent to the
consumer in the mailing that sends the consumer his or her new credit card.
S O A N B is a special purpose credit card bank regulated by the Office of the Comptroller
of the Currency. Today, S O A N B issues proprietary credit cards to consumers who are
customers of its affiliated retailers.
S O A N B is a wholly-owned subsidiary of Charming Shoppes, Inc. ("CSI"). CSI is a multi-
brand, multi-channel specialty apparel retailer with a leading market share in women's
plus-size specialty apparel. Its Retail Stores segment operates retail stores and related
E-commerce websites under the following distinct names: LANE BRYANT, LANE
BRYANT OUTLET, FASHION BUG, CATHERINES PLUS SIZES and PETITE
SOPHISTICATE OUTLET. CSI's Direct-to-Consumer segment operates numerous
apparel, accessories, footwear, and gift catalogs and related E-commerce websites
through its Crosstown Traders business.
CSI has more than 2,400 retail s