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Credit and WFN to WFNNB, which corporations were thereafter
liquidated and dissolved. WFNNB is a wholly owned subsidiary
corporation of petitioner.
Credit Operations of World Financial Network National Bank
Upon receipt of its charter, WFNNB entered into agreements
(the merchant agreements) with the stores. The merchant
agreements concerned credit cards to be issued by WFNNB to
customers of the stores and embodied the contractual relationship
between WFNNB and the stores with respect thereto. Among other
things, the merchant agreements entitled WFNNB to issue credit
cards bearing the name and logo of each store to customers of
that store.
Also upon receipt of its charter, WFNNB sent notices (change
of terms notices) to holders of the credit cards previously
issued under the credit plans operated by Limited Credit and WFN.
The change of terms notices, among other things, informed such
credit card holders that WFNNB would be the extender of credit on
their account and, for credit card holders in certain States,
there would be an increase in the interest rate on their
accounts.
As of January 30, 1993, WFNNB had opened 12.9 million credit
card accounts, and it had outstanding credit card loans in excess
of $757 million.
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