TMG Financial Services believes a growing number of credit unions are looking to sell their credit card portfolios and wants other credit unions to help them do it.
TMGFS is the portfolio buying and agent issuing arm of The Members Group, a card processing CUSO affiliated with the Iowa Credit Union League. TMGFS purchases CU credit card portfolios with money invested by other credit unions who may never sell their card portfolios but nonetheless want to invest in what has been steadily performing credit union asset.
"We believe that there are many credit unions that are actively looking at selling their card portfolios for a variety of different reasons," Russell said. "We think it's important to keep these assets in the credit union movement, if possible, and we offer credit unions a chance to invest in them," Russell said.
To Bolster its effort to gather investors, the CUSO released a white paper last week explaining how investment effort, called Collateralized Advance Program works and outlining how the CUSO sees the opportunities.
"We estimate there are $130 million in portfolios currently in the pipeline for evaluation," the CUSO wrote in the paper titled Collateralized Advance Program: Investing In The Future.