Applied Card Not Leaving Huntington Because of McGraw suit, Experts Say

While Applied Card Systems is definitely closing its Huntington call center, the closing has nothing to do with the company’s tenuous-at-best relationship with West Virginia’s Attorney General Darrell McGraw, according to both area experts and the West Virginia Record.

Gerry McDonald, president of the Huntington Area Development Council, said the company’s history with McGraw’s office wasn’t the issue.

Applied Card Systems instead blamed poor market conditions. About 300 employees are out of a job as of today.

Adding to Applied’s West Virginian woes is the fact that the FDIC requires companies to have loan-loss reserves. However, Applied Card Systems supplies credit cards to people with bad or risky credit histories — and the FDIC has greatly increased the lona-loss reserve requirements.

“Applied Card basically has to change its business model,” McDonald said.

You can read more about this story at Applied Card Not Leaving Huntington Because of McGraw suit, Experts Say.