The market for credit union credit card portfolios has slowed down. More credit unions preferring to manage their own card programs and more selective card portfolios buyers have both made CU card portfolio sales relatively rare.
But the roughly 430 credit unions that sold their credit card portfolios since 2001, many in 2006-2007, face a process remarkably similar to the one they used or should have used to sell their card portfolios in the first place, according to CU card consultants and brokers.
The CUs face a similar decision process because most of the card portfolio sale and agent issuing agreements they signed had a duration of five years and thus come up for renewal in 2011 and 2012. According to analysis of NCUA data conducted by CU card consultant and brokerage firms, roughly 120 credit unions have to decide whether to keep letting their current partner issue their cards, change issuing partners or get back into direct card issuing. And many of those CUs may not be ready for the decision, consultants said.
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