DALLAS — TNB Card Services, the card processing and portfolio management arm of credit union-owned Town North Bank, has purchased 140 credit union card portfolios since 2002, the CUSO said.
TNB began purchasing CU card portfolios in 2002, after having opposed portfolio sales for many years, and the CUSO reported purchasing 35 CU card portfolios so far this year alone.
The latest purchases are Gulf Coast Educators Federal Credit Union of Texas, Lakes Area Credit Union of Minnesota, Remington Credit Union of New York, Oregon Territory Federal Credit Union of Oregon, and NODA Federal Credit Union of Louisiana.
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This series of purchases moved more than $12.3 million in outstanding balances and 10,400 card accounts under TNB's ownership.
Gulf Coast Educators Federal Credit Union, based in Pasadena, Texas, gave a lot of thought to the sale of its credit card program, mulling it over for a year and a half before making the commitment.
"We're really not in the credit card business," observed Michael Barry, vice president project development for Gulf Coast Educators FCU. "We didn't have a rewards program, and we didn't really have the staff or the expertise to offer one. With TNB, our members can have that."
Barry said three key reasons convinced the credit union that TNB was its best choice: the credit union's previous experience with TNB had been positive; the company's credit union ownership was a plus; and also TNB's strong focus on member service.
Established in 1948, Gulf Coast Educators FCU serves school district and other educational facility employees in three southeastern Texas counties, Brazoria, Harris, and Galveston. With 34,000 members and three branches, it has assets over $250 million.
Remington Credit Union of Ilion, New York, said they decided to sell their portfolio because of, in part, the problems with fraud and insurance, according Stephen Jones, manager of the CU.
"Insurance was a major factor for us, and the high premiums hurt us," Jones said. "Also, with our size, we couldn't offer the range of products to serve our members that TNB can give them. Now our cardholders can have more variety, with higher lines of credit.
Jones added, "We are giving our members a stronger product, plus we are distributing the revenue back to members."
Remington CU, established in the early years of the Great Depression, serves a large number of special employee and membership groups in Herkimer County, including employees of the Remington Arms Company. With assets of $27 million, it has 5,500 members.
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