People's Credit Card Master Trust Independent Accountants' Report on Management's Assertion Concerning Internal Control Over Financial Reporting for the Credit Card Services Division of People's Bank Independent Accountants' Report People's Bank 850 Main Street Bridgeport, Connecticut 06604 Bankers Trust Company Four Albany Street, 10th Floor New York, New York 10006 We have examined the assertion made by the management of People's Bank ("People's") that its Credit Card Services division (which includes the accounts transferred to and serviced for the People's Bank Credit Card Master Trust) maintained effective internal control over financial reporting as of December 31, 2000 that was sufficient for the prevention and detection of misstatements due to errors or fraud in amounts that would be material to People's consolidated financial statements. This assertion is included in the accompanying Management Report on Internal Control Over Financial Reporting for the Credit Card Services Division of People's Bank, dated March 15, 2001. Management is responsible for maintaining effective internal control over financial reporting. Our responsibility is to express an opinion on management's assertion based on our examination. Our examination was conducted in accordance with standards established by the American Institute of Certified Public Accountants and, accordingly, included obtaining an understanding of the internal control over financial reporting, testing and evaluating the design and operating effectiveness of the internal control, and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Because of the inherent limitations in any internal control, misstatements due to errors or fraud may occur and not be detected. Also, projections of any evaluation of internal control over financial reporting to future periods are subject to the risk that the internal control may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. In our opinion, management's assertion that the Credit Card Services division of People's maintained effective internal control over financial reporting as of December 31, 2000 that was sufficient for the prevention and detection of misstatements due to errors or fraud in amounts that would be material to People's consolidated financial statements is fairly stated, in all material respects, based upon criteria described in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. /s/ KPMG LLP Stamford, Connecticut March 15, 2001