A team of credit card industry veterans with experience at major credit card companies have joined together to launch a new credit card brand called “Ollo”. Ollo is a credit card brand of Fair Square Financial Holdings, which is led by CEO Rob Habgood, who has held executive positions in the credit card divisions of Bank of America and Capital One. The company’s board includes a number of notable financial industry veterans, including former Citigroup CEO Vikram Pandit and Steven Freiberg, former CEO of E*Trade, who will serve as Chairman of the Board.
Ollo is offering two main credit cards at this point, both by invitation only. The Ollo Platinum MasterCard is a no-annual-fee card with an interest rate of 24.99%. The Ollo Rewards MasterCard has a $39 annual fee and offers cash back using the following formula: 2% cash back on gas station, grocery store, and drug store purchases, and 1% cash back on all other purchases. It also has a 24.99% interest rate.
According to the Ollo Website, Ollo cards are being issued by Mid America Bank & Trust.
Our initial impression of the Ollo credit cards is that they are targeted at subprime or near-subprime customers. The high interest rates (see industry average rates here) on each card and the annual fee for the rewards card indicate that they expect to approve riskier customers and plan to make their profits from greater interest and fee collection while allowing for more defaults than larger issuers would generally tolerate.
— by Laura Mack, albinamatveeva.ru