Bank Says It’s Halted Credit Card Data Sales

Charter Pacific Bank said it had ceased sales of credit card number databases as a result of a controversy over financial privacy. Visa International officials warned the Agoura Hills-based bank earlier this week that selling the databases violated the card association’s rules. But bank President Michael Ward said the decision to halt the practice “was made before they got here.” Bank officials said they sold the databases--which contain millions of numbers compiled from the bank’s merchant account holders--for use as a fraud prevention tool. But a report filed in U.S. District Court in Los Angeles last week showed that at least 90% of the numbers contained in databases the bank provided to one merchant, Kenneth H. Taves, were allegedly billed for $45.7 million in mostly bogus charges. Sources say the bank said it sent a letter notifying Visa of the sales; Visa is reviewing its records to determine if the letter was received.