A June 10 article, “Two Big Credit Card Portfolios Were Sold in the First Quarter,” missed a larger part of the story. It isn't just credit unions in “various financial difficulties that are evaluating their card portfolios as assets that could be sold to raise cash if they had to do so.” Since 2007, we have partnered with credit unions that have strong balance sheets and are simply looking for a strategic partner to grow their credit card portfolio so they can better focus on their core competencies.

Certainly there have been fewer portfolio sales since the beginning of the year, but it doesn't mean credit unions aren't evaluating the potential to sell their credit card portfolio. Currently, TMG

Financial Services is pursuing several deals to close by the end of the year; and each month we continue to receive and evaluate many portfolios. Credit unions certainly are reluctant to sell unless they find the right partner, but they still consider this a viable option.

As the only credit union-owned solution, TMG Financial Services collaborates with credit unions to provide a competitive program that is member-friendly. We've heard all the reasons why credit unions shouldn't sell their credit card portfolios, but there seems to be a lack of discussion on the right reasons to sell. Perhaps, the most important is growing a credit card portfolio takes resources that some credit unions choose to focus in other areas-even those with a strong balance sheet.

Implying that selling a credit card portfolio is limited to those credit unions that are in some type of financial trouble is unfortunate and overlooks the obvious. To sell a credit card portfolio, a credit union and its board of directors have made a thoughtful and strategic decision that was looked at from all angles.

And that's simply good business.

Jeff Russell
President/CEO
TMG Financial Services
Des Moines, Iowa