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1st Quarter, 2003 Volume 3 Issue 1 Global Account Solutions C&W unveils newest service

Van Nuys, CA, Caine & Weiner clients can now conduct international business transaction faster and more efficiently.

The new service--Global Account Solutions, enables Caine & Weiner to electronically submit local payment instructions to the purchasers of goods and services in 20 countries around the world, accept payments in any currency and efficiently repatriate them while tracking the process on line in real time.

The new service is made possible through a strategic alliance between C&W and Irvine, California-based Payment Partners.

“This new feature”, commented Robert E. Caine, C&W’s Chairman and CEO, “Fits in nicely with our 24/7 status updates, whilemaking the payment process easier for overseas customers.

Although traditional banking networks allow customers to access their accounts, difficulty arises when a transaction must go across a national border.

By seamlessly linking the individual

banking systems into a master network it eliminates the worry of fraud, charge-backs, lost wires and expensive foreign exchange.

This global service allows businesses and individuals to make payments and transfers funds without the worry of fraud.

Smart, sleek and poised to save time and reduce costs for you, the web-based service resides in a robust, scalable and proprietary foreign exchange engine that facilitates and tracks currency conversion.

The system can be easily and quickly integrated into any web environment, back-end, system or proprietary client.

Businesses can send electronic invoices and receive electronic payments from foreign associates directly into their US Bank account via ACH (the U.S. Automated Clearing House system) enabling no-cost batch deposits into any financial institution.

Your business can offer single sign-on/user identification for a seamless end-user experience and can create reports on-the-fly which can be viewed on-line or fed into a cash management or accounting program. Furthermore, because non-rescindable funds are received, users can gain early access and visibility into payments made via the system.

(See GAS on next page)

C&W Outgrows Working Space

Van Nuys, CA--Robin Linder paid scant attention to the sound of the power saw slicing through the wall several feet from her desk. As a Caine & Weiner Account Resolution Specialist, her attention was focused on the matter at hand--the debtor who owed her client $1200.

Several minutes later the telephonecall ended, the debtor agreed to pay. As Robin entered the notes into her PC, a large piece of drywall fell onto the plastic drop cloth covering the carpet.

Due to our on-going expansion”, she said, “It gets a little noisy, but you get used to it after a while.”

An influx of new clients required a larger staff to service them, hence Executive Management had to decide whether to relocate the business to a larger site or expand the presentoffice area. As luck would have it, the neighboring business moved, enabling C&W to annex the newly vacated office space. (See EXPANSION on next page)

Overseeing the expansion plans are Robert E. Caine, Chairman & CEO and Greg A. Cohen, President & COO.

Zero percent credit card? Make sure you pay on Time!

Credit card issuers, automobile manufacturers and other businesses eager to entice consumers to spend more are offering promotions including zero percent financing.

Buyers beware! Every zero won’t add up to a free ride. “These offers”, said Greg Cohen, Caine & Weiner’s President and COO, “Can be deceiving.”

What’s the catch?

If you’re late with your payment you’ll find out very quickly.

“One late payment”, said Cohen and there goes the free interest you were promised”.

One well known card issuers charges 7.9 percent if you’re late. You’ll pay 19.99 percent if late twice in any six--month period.

Another has a 24.74 percent “default rate” on all its cards.

Despite an offer for zero percent in the mail, a lender can start you out at a higher rate if your credit history is marginal. Debt transferred from another card is also exempt from the zero percent interest. One card holder who transferred a $10,000 debt to one such offer, was rudely surprised when her monthly statement arrived--hitting her with a 15 percent annual rate.

“Read the small print”, cautions Cohen, “Otherwise you could be in for a big surprise.”

(EXPANSION continued from front page)

The additional 2000 square feet of space will house the Sales and Marketing Departments, to include four separate office areas, a lobby and additional restrooms.

Additional parking space is also included.

(GAS continued from front page)

The service is a valuable tool for many types of transactions.

Consumer-to-Business: Accepts payments from consumers purchasing U.S. goods from overseas; Receive funds from financial institution account-holders based outside the U.S.; Receive credit card payments made from cardholders located across borders.

Business-to-Business: Exporters and importers can be linked for easy presentment/payment; Franchises can make monthly royalty payments to U.S. headquarters via their intranet; Overseas auction winners can submit bid payments to the U.S. Asset Manager.

Software Integrators & Payment Providers; Enhanced suite of cash management tools; deliver RFP responses to large clients with an international component.

The web-based service is designed according to industry standard SOAP interfaces which means most installations can be completed in a matter of days. Payment Partners offersproject management and integration assistance to assure smooth implementation.

Security is a top priority to ensure

secure transfer of funds acrossinternational borders. This web service system employs multiple layers of protection through industry standard digital certificates, IP address filtering and registration, dual firewall configuration and encryption. The service also incorporates transaction-screening guidelines from the recently passed Patriot Act of 2001.

Payment Partners will provide documentation to interested parties upon request.

“By utilizing leading edge technology, Caine & Weiner is one of the first in the collection industry to offer their clients a process to maximize cash flow and reduce the DSO on international transactions”, said Robert E. Caine, Chairman and CEO of Caine & Weiner.

“This new capability”, he said “Not only streamlines international collections but provides our clients with invoicing and prepayment capabilities not previously accessible for general international commerce by U.S. businesses, while making the cross-border payment process more convenient to the debtor”.

Credit card companies pre-approve dog

Revenna, Ohio--Spike is a mixed-breed canine pre-approved for credit cards, including one from Sears.

The dog’s owner has no idea how the credit issuers and others got his name. She thinks a hacker may have obtained it from the veterinarian or dog license records.

After his paw print was affixed to the signature line to one application, the company advised Spike would receive the card once hePaid the $29.95 set-up fee.

The offer to Spike isn’t surprising considering 1,532,700,000 credit cards have been issued world-wide.

Rudy, a Long Beach, California Rat Terrier Eyes the mail carrier, no doubt hoping hiscard has finally arrived.

2002--Debt Increases! Bankruptcies at all-time high Van Nuys, CA, The economy grew 4.0 percent in the third quarter, helped in part with robust car sales and home-owners taking advantage of falling interest rates to re-finance their home mortgage.

Economists say extra cash coming from re-financing, auto sales and credit card purchases--the lifeblood of the economy, are key reasons to keep consumers spending this year, amid the turbulent stock market, a stagnant job market, eroding consumer confidence and worries about possible war with Iraq.

The same spending is a key reason that consumer debt is increasing every month. According to the Federal Reserve the figure now stands at $1.7 trillion in the U.S.--33% higher than in 1997.

Fully, two-thirds of our economy is driven by consumer spending, most of which is based on credit. A visit to the check-out line at any mall, home center or grocery store will confirm that most sales are charged to a credit card--and apparently there’s no shortage of plastic!

Major card issuers pursue all age and income groups. Because card issuers want to put multiple cards in the consumer’s wallet, the average household receives more than a dozen card solicitations a month. One in four consumers carry multiple credit cards

with different features from the same issuer.

Few shoppers entering an electronics superstore can resist the abundant selection of dazzling, low-cost, feature products foisted upon them through aggressive marketing programs, rebate offers, no-interest financing and same-day, free delivery.

According to a recent survey, by years end the total national credit card debt is projected at $605 billion, representing a 6.4% increase from one year ago. With some global credit volume was up 15% for the same period.

To be sure, credit card issuers aggressively market their product, but they aren’t solely to blame for the nations rising debt. Since 9/11, to spur sales, automobile manufacturers have offered 0% financing programs. PC’s, video camera and other consumers electronic items are driven by programs offering deferred payments for 12 months.

Consumer spending, hence rising debt, isn’t confined to the US. In South Korea household debt is up 88.6% since 1997. As a result, the asset-to-debt ratio of Korean households stood at 2.2%, meaning the growth pace of debts surpassed that of assets. Singapore is on pace to registers its highest bankruptcy rate in 17 years and Argentina, who defaulted on part of its $104 billion public debt continues to struggle.

If credit transactions are left unchecked, debt rapidly increases, perhaps explaining one of the reasons why bankruptcy filings are up this year, in fact the highest--ever!

According to the Administrative Office of the US. Courts, bankruptcies totaled 401,306 for the quarter, up 12% from the same period last year. Consumer filings accounted for the largest number of quarterly bankruptcies, 391,873--up 12% from the quarter one year earlier.

Not surprisingly, where gambling was legalized, bankruptcy filings increased. A recent study showed the average gambler owed more than $40,000 and possessed an average of eight credit cards with balances from $5000 to $10,000 each.

As a business whose livelihood is derived from debt collection , one would wonder why an international collection agency is concerned about reducing debt--after all, if there’s less debt to collect, who would be more adversely affected than companies such as ours?

Even though delinquent debt is the raw material collection agencies and debt-servicing businesses thrive on, the greater good for our country and the international community is realized when a robust, vibrant world economy prevails. When a debt-ridden company files bankruptcy, its impact adversely affects stockholders, employees and the community at large. Likewise, there are no winners in personal bankruptcy filings.

Are we at the bottom of a business cycle or in the first phase of a long period of slow-growth? There are a lot of opinions, but only time will tell.

I

America: the land of milk and honey........and plastic!

As if it wasn’t already easy enough, the Bank of America is testing a key chain card to purchase small-balance items.

A pilot program launched at their Charlotte, NC headquarters allows employees to make small purchases at about two dozen restaurants and shops.

Bank-installed equipment allows diners or customers to pay for their sandwich or greeting card by waving a small card on their key chain--eliminating cash. Since it’s tied into their credit card, the charges show up on their monthly bank statement.

Not to be outdone, MacDonald’s Corp., announced its intention to accept credit and debit cards later this year.

Jack in the Box also announced a similar plan to begin this year.

Experts cite the convenience and fast service that will result from credit/debit card purchases rather than using cash.

It’s A Girl!

After having three sons--Zac 10, Jake 7,and Matt 4, Greg Cohen, C&W’s President, and wife, Chris, decided the boys should have a little sister.

On Monday, December 4th, they gottheir wish.

Camryn Abbi Cohen was born at 7:30P.M. She weighed 6 lbs. 15 Oz.

Mom and Camryn are doing excellent!