Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) unit Clal Financing Credit Ltd. yesterday launched the Clal Card in collaboration with Leumi Card Ltd. The launch is a major step for Clal Financing Credit in the consumer credit market. The company already provides mortgages and loans. Leumi Card will issue the Clal Card and will be responsible for its operation.
Clal Insurance is the second insurance company to issue a credit card, after the joint venture between Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) and Israel Credit Cards-Cal Ltd. (ICC-Cal) (Visa).
The Clal Card is an internationally valid credit card based on a revolving credit platform of Leumi Card's Multi Card. The Clal Card will be issued in three versions - Silver, Gold, and Platinum. The interest rate will range from Prime + 3.5% to Prime + 10.5%. The monthly management fee will be the normal rate charged for revolving credit cards of NIS 8 (for a total of NIS 96 a year).
As part of the market effort for the new card, Clal Financing Credit said that new cardholders would be exempt from the management fee through September 2009.
Clal Financing Credit has built an independent system of credit scoring (a credit and customer rating system) and will set the credit framework that will be granted to customers.
Published by Globes [online], Israel business news - www.globes-online.com - on April 9, 2008
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