SAN JOSE, Calif. — The $389 million Alliance Credit Union hasbecome the latest CU to have announced a return to credit cardissuing.
|The CU sold its then roughly $18 million card portfolioconsisting of roughly 7,500 card accounts to MBNA which has sincemerged with Bank of America. The CU has chosen PSCU FinancialServices as an issuing partner for its new card offering.
|According to Emily Condon, an Alliance representative, the CUsold the portfolio in 2002 because it was trying to process it andadminister it entirely in house and felt it lacked the resources tokeep it at profitability.
|But Condon reported that over time the CU realized it hadmiscalculated member reaction to the portfolio sale and that itsmembers had gotten used to a degree of customer service from the CUthat was not possible with an outsourced partner. She alsoexplained that Bank of America holding the portfolio had alsoplayed into the CU's decision to return to issuing.
|Alliance is testing its new card and expects to begin offeringit to members around the beginning of 2008.
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