DALLAS -- Twenty-two credit unions that service their card portfolios with TNB Card Services, the card processing arm of credit union-owned Town North Bank, saw their card balances increase more than $2.2 million, collectively, by participating in a TNB Card balance transfer promotion. Among the 22 participating, the $580 million EECU, headquartered in Fort Worth, Texas, gained $220,000 in the promotion with an average transfer rate of $3,200. "We initiated this promotion with a goal of growing our card balances by $200,000, which we exceeded. We also surpassed the goal of our target response rate and the average balance transfer amount. In all, this promotion was highly successful," said Keith Spivey, vice president with EECU.
The $368 million DATCU credit union, headquartered in Denton, Texas, saw a return of 2.32% on the promotion, which translated into an additional $216,000 in outstanding balances, the card processor said.
R. Dean Barnes Jr., senior vice president at DATCU, said the 60-day, 0% interest rate deserved a lot of credit for the positive response.
"We experienced an increase in the response rate and balance transfer over the 2005 Fall Balance Transfer promotion," Barnes noted, "which illustrates this type of promotion is something our cardholders continue to positively respond to."
Smaller credit unions also benefited from the promotion. The $89 million El Paso Corporation Federal Credit Union offered a life-of-balance rate for its cardholders, bringing in $86,500, with an average check of $3,400. The credit union offered a 5.9% rate for the life of the balance and generated a response rate of 3.21%, a significant increase over the response rate from previous balance transfer promotions, noted Debbie Washington, loan officer of El Paso Corporation FCU.
The TNB promotion enabled the 22 credit unions that participated to customize it for their cardholders by selecting the interest rate and opting for a life-of-balance annual percentage rate, which was available for every percentage rate offered, the processor said.