TNB-Elan Transaction Changes Grace Periods
Will members of credit unions currently issuing their credit cards through TNB Card Services see higher fees and interest with Elan Financial Services?
TNB Card Services announced yesterday that it sold its 168 agent-issued credit card portfolios to Elan Financial Services, which should be completed by November.
A random examination of the terms and conditions of credit unions issuing through each firm found that credit cards from CUs partnered with Elan carry some higher fees and interest than those from CUs that are partnered with TNB.
For example, NorthRidge Community Credit Union, headquartered in Hoyt Lakes, Minn., is currently with TNB. On late fees, the CU's TNB-issued credit card accounts charge $15 on balances of less than $100, $29 for balances of between $100 and $250 and $34 on balances of over $250. The over-limit fee the credit union levies is $29.
By comparison, Community First Credit Union, headquartered in Appleton, Wis., an Elan agent-issuing partner, charges late fees of $19 for balances under $100, $29 for balances of between $100 and $250 and $34 for balances of over $250, with an over-limit fee of $39.
Additionally, the TNB-issued card promise of a grace period is "not less than 20 days" versus the grace period for the Elan-issued card of 20-25 days. On interest rates, the Elan card carried a slightly lower minimum rate of 7.24%, compared to TNB's 9.99%, but a higher maximum rate (20.24% from Elan versus 18.99% from TNB).