Credit Card News
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Other » Bank of America Sells Credit Card Portfolios to U.S. Bank

Bank of America Sells Credit Card Portfolios to U.S. Bank

By
Add to Favorites:
Bank of America Sells Credit Card Portfolios to U.S. Bank

In an effort to raise capital by shedding unwanted assets, Bank of America recently sold off a $700 million portfolio of credit cards to U.S Bank. BOA has now has sold off approximately $1 billion of the credit-card loans they used to issue on the behalf of other financial institutions such as Chrysler and Edward Jones. It is the intention of BOA`s card-issuing division, FIA Card Services, to exit the agent bank credit card business entirely by the end of 2012. However, it plans on continuing to issue other types of cards.

“We decided earlier this year that agent bank card business … wasn`t core to our goal of building deep relationships with consumers,” said Bank of America spokeswoman Betty Riess, as reported by The Star Tribune.

U.S. Bank, which is based in Minneapolis, announced that their Elan Financial Services Unit will be acquisitioning the portfolio. Elan is already comprised of consumer and small business cards from some 28 credit unions, banks and other financial service firms. The BOA deal represents the biggest credit card acquisition made by Elan in 40 years. The specific terms of the deal, including the final purchase price, have not yet been disclosed.

“This is a very nice addition to pick up in one purchase,” said the vice chairman and head of U.S. Bancorp Payment Services Pamela Joseph, according to The Star Tribune.

U.S. Bank is aggressively growing the bank card issuing portion of their business and, as a result, is becoming a leader in that sector. Elan has acquired over 300 card portfolios throughout the past six years. Elan issues co-branded cards on the behalf of smaller credit unions, banks and companies such as Toyota, Kroger and REI. It also provides a myriad of other services including ATM management and debit card processing.

Last year, U.S. Bank`s sales were $20.5 billion, over one quarter of which was comprised of revenue generated from their payments business.

Add to Favorites:

Related News:

Discover Nabs Three Spots on Money Mag’s Best Credit Card List for Third Consecutive Year

By Elizabeth Nelson, Posted: September 27, 2016

The Discover it Card, Discover it Miles Card, and Discover it Secured Card were all listed among the best credit card products on the market by MONEY Magazine, which recently released its Best Credit Cards report for 2016-2017. Continue reading
Frugal Fashionistas Rejoice: Century 21 and Alliance Data Launch New Credit Card

By Elizabeth Nelson, Posted: September 26, 2016

New York City-based bargain department store Century 21 is partnering with Alliance Data to launch a new credit card program. A favorite of fashionable bargain-hunters, Century 21 operates 10 stores across the greater New York City area ... Continue reading
Talking About Money Equals Happiness

By Dar Dowling, Posted: September 23, 2016

Love and money are the two biggies in life and relationships, and now, according to a new study by TD Bank, couples who talk about money have a higher happiness factor than those that don't. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Get 0% Intro APR on Balance Transfers and Purchases for 21 months. After that, the APR will be 12.24%-22.24% based upon your creditworthiness.
For Excellent/Good Credit
1% cash back on select purchases, terms apply
For Fair Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit