Affinion Group

Affinion Group, formerly known as Trilegiant Corporation (TLG), Progeny Marketing Innovations, Benefit Consultants Inc., Cendant, CUC International, and Comp-U-Card, is an affinity marketer of membership, insurance, package enhancement, and loyalty programs and services. The company was founded in 1973 and has about 5,200 affinity partners. Affinion is based in Norwalk, Connecticut and employs about 3,000 people in the United States and in fourteen European countries. [cite web| url=http://money.aol.com/news/articles/_a/affinion-direct-response-group-launched/n20071016091209990015?cid=2369| title=Affinion Direct Response Group Launched article| publisher=AOL Money | accessdate=2008-02-27]

Business

Affinion Group develops customized marketing programs for their clients. As of June 30, 2007, Affinion Group had more than 5,200 affinity partners in a variety of industries including financial services, retail, travel, telecommunications, utilities and the Internet. Some leading affinity partners include JPMorgan Chase, Bank of America, Royal Bank of Scotland, Société Générale, CompUSA, and Staples.

Depending on the nature of the relationship Affinion has with a given affinity partner, customers either purchase its programs and services directly from Affinion or are provided their services through an affinity partner. As of June 30, 2007, Affinion had about 70 million customers enrolled in its programs worldwide.cite web| url=http://phx.corporate-ir.net/phoenix.zhtml?c=198610&p=irol-SECText&TEXT=aHR0cDovL2NjYm4uMTBrd2l6YXJkLmNvbS94bWwvZmlsaW5nLnhtbD9yZXBvPXRlbmsmaXBhZ2U9NTE4MDkzMSZkb2M9MSZudW09Ng%3d%3d| title=SEC Filings S-1/A AFFINION GROUP HOLDINGS, INC article (page 6)| publisher=U.S. Securities and Exchange Commission| accessdate=2008-02-27] In addition to its own development, Affinion also contracts with third-party vendors to provide components for some of its products and services.

History

Prior to 2007, Affinion Corporation was known as the "Trilegiant Corporation" (TLG) (and prior to that Progeny Marketing Innovations, Benefit Consultants Inc., Cendant, CUC International, and Comp-U-Card), a membership-based discount provider of travel, shopping, health, dental, entertainment, buying clubs, and consumer protection services. TLG/Affinion is the successor to Cendant Membership Services, Inc. and Cendant Incentives.

Affinion started with membership products in 1973 through the formation of Comp-U-Card of America, Inc. (CUC). Between 1985 and 1986, CUC acquired the insurance and package enhancement products of Financial Institution Services, Inc. and Madison Financial Corporation. In 1988, CUC acquired National Card Control, Inc., which was formed in 1981 and provided loyalty solutions and package enhancement programs. The international products were started by CUC in the early 1990s. In 1997, CUC merged with HFS Incorporated to form Cendant Corporation. The international products were rebranded as Cendant International Membership Services after the formation of Cendant. In 2001, the U.S. membership products were rebranded as Trilegiant and the loyalty solutions products were rebranded as Trilegiant Loyalty Solutions. The insurance and U.S. package enhancement products were rebranded as Progeny in 2002.

During these periods, the various products within the combined financial statements operated independently and were subject to certain non-compete agreements between them which limited their access to new products and markets. In 2004, Affinion terminated the non-compete agreements described above and streamlined its organizational structure to integrate these historically separately managed products lines. Accordingly, the company’s North American membership, insurance, package and loyalty products came under common management beginning in the first quarter of 2004 and the North American management team assumed responsibility for international products in late 2004 and oversight of the travel agency in the first quarter of 2005. [cite web| url=http://phx.corporate-ir.net/phoenix.zhtml?c=198610&p=irol-SECText&TEXT=aHR0cDovL2NjYm4uMTBrd2l6YXJkLmNvbS94bWwvZmlsaW5nLnhtbD9yZXBvPXRlbmsmaXBhZ2U9NTE4MDkzMSZkb2M9MSZudW09NTA%3d| title=SEC Filings S-1/A AFFINION GROUP HOLDINGS, INC article (page 50)| publisher=U.S. Securities and Exchange Commission| accessdate=2008-02-27]

In 2005, the company entered into a purchase agreement with Cendant pursuant to which Affinion purchased from Cendant all of the equity interests of Affinion Group, LLC (known as Cendant Marketing Services Group, LLC prior to the 2005 transactions) and all of the share capital of Affinion International Holdings Limited ( previously known as Cendant International Holdings Limited). [cite web| url=http://phx.corporate-ir.net/phoenix.zhtml?c=198610&p=irol-SECText&TEXT=aHR0cDovL2NjYm4uMTBrd2l6YXJkLmNvbS94bWwvZmlsaW5nLnhtbD9yZXBvPXRlbmsmaXBhZ2U9NTE4MDkzMSZkb2M9MSZudW09OTM%3d| title=SEC Filings S-1/A AFFINION GROUP HOLDINGS, INC article (page 93)| publisher=U.S. Securities and Exchange Commission| accessdate=2008-02-27]

Complaints

Numerous issues with this company have been reported. According to the Better Business Bureau, hundreds of issues have been reported by consumers for deceptive selling practices, unauthorized charges to consumers' credit cards, and failure to respond or resolve issues. Many of these complaints stem from the charges individuals found on their credit card statements. Consumers are told that it takes 28 days for a charge to be canceled or credited back, and even employees of the credit card company are not able to dispute these charges in the same manner any other charge would be handled. In fact, a completely different process is required, as per the creditors contracts with Affinion Group. This process is designed to give Affinion group as many chances to "save the sale" as possible. Where any normal unauthorized charge can be disputed and resolved within a month as a matter of law, charges from these merchants are oftentimes not resolved for several months on end. [ [http://ct.bbb.org/WWWRoot/Report.aspx?site=29&bbb=0111&firm=41001179 "Better Business Bureau CT TLG report"] ]

On March 7, 2005, the company made a Settlement Agreement with the Office of the Attorney General of Florida. Florida Deceptive and Unfair Trade Practices Act, Chapter 501, Part II, Florida Statutes. [cite web|url=http://www.myfloridalegal.com/Trilegiant_Settlement.pdf |title=AG Case # L01-3-1484 | publisher=State of Florida, Office of the Attorney General] In July, 2005, the Attorney's General of Connecticut, California, and Maine brought a lawsuit against TLG/Affinion for allegedly deceiving consumers into enrolling in its clubs. [cite web| url=http://www.ct.gov/ag/cwp/view.asp?A=1949&Q=296406| title=CT Attorney General Lawsuit| date=2005-07-12| publisher="Connecticut Attorney General's Office| accessdate=2008-02-27] [cite web| url=http://ag.ca.gov/newsalerts/release.php?id=1192&year=2005&month=7&PHPSESSID=c9b9f862bab5e75c7aa8b99b322b6587| title=CA Attorney General Lawsuit article| date=2005-07-12| publisher=Connecticut Attorney General's Office| accessdate=2008-02-27]

In December, 2006, Trilegiant/Affinion agreed to pay over $8 million dollars to 17 states and their residents to settle allegations they tricked residents into paying for its programs. [cite web| url=http://www.consumeraffairs.com/news04/2006/12/trilegiant_chase.html | title=Chase Bank, Triligent, Settle Negative Option Fraud Charges | publisher=consumeraffairs.com]

References

External links

* [http://www.affinion.com Official Website]
* [http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/11-28-2006/0004481125 Affinion ranked #321 on Forbes Top Private Company List]
* California Attorney General's [http://ag.ca.gov/newsalerts/release.php?id=1396&year=2006&month=12 announcement of 2006 settlement] with Trilegiant/Affinion, and [http://ag.ca.gov/cms_attachments/press/pdfs/2006-12-11_Trilegiant_Settlement_Judgment.pdf Text of Settlement Judgement]
* State of California Trilegiant Fraud [http://ag.ca.gov/contact/complaint_form.php?cmplt=CL Restitution Form]