Summary
Selling your credit card portfolio can be a money maker, but executives at several credit unions that have gone through the process in recent years warn of the need to vet prospective suitors, especially for the member service they will provide. As the credit union considered offers from several banks and credit card companies, one proposal stood out. It offered the biggest premium, along with a variety of rewards options for members. The credit card company offered to hold the credit union's rate and terms for a year as members considered their options and chose a new account. In the immediate aftermath of the portfolio sale, the credit union's surveys of departing members indicated that 35% of those who left did so because of dissatisfaction with their new credit card accounts. However, some credit card portfolio sales go off without a hitch.
See the full content of this document
Extract
Seller Beware
Selling your credit card portfolio can be a money maker, but executives at several credit unions that have gone through the process in recent years warn of the need to vet prospective suitors, especially for the member service they will provide.
Beyond running the numbers, analyzing the portfolio's worth should encompass the value of credit cards to members as a credit and transaction tool. We talked to credit union executives who got out of the business or decided to hold on, even one who got back in; some were pleased with the results of their portfolio sale, and some were dissatisfied. All agreed on t...See the full content of this document
Sponsored links
