BOSTON -- The $125 million Taunton Federal Credit Union,headquartered in Taunton, Mass., has sold its card portfolio toElan Financial Services, a subsidiary of US Bank. The purchasebrings Elan a portfolio of 2,500 accounts worth roughly $3.4million.

"We had a couple of choices in front of us," says John Damaso,CEO, Taunton Federal Credit Union. "We could upgrade our creditcard program on our own, or we could sell our portfolio outright.Neither option was appealing on its own. Once we realized that apartnership with Elan would provide the best of both worlds, aworld class program to our members in our name and an attractivepremium for our portfolio, it was an easy decision for us to chooseElan."

Damaso explained that the CU's card program had penetrated 35%into the CU's membership and Taunton doubted whether they couldgrow the program enough to have the economies of scale sufficientto offer the members rewards and other benefits that members hadsaid they wanted.

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