A June 10 article, “Two Big Credit Card Portfolios Were Sold inthe First Quarter,” missed a larger part of the story. It isn'tjust credit unions in “various financial difficulties that areevaluating their card portfolios as assets that could be sold toraise cash if they had to do so.” Since 2007, we have partneredwith credit unions that have strong balance sheets and are simplylooking for a strategic partner to grow their credit card portfolioso they can better focus on their core competencies.

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

Financial Services is pursuing several deals to close by the endof the year; and each month we continue to receive and evaluatemany portfolios. Credit unions certainly are reluctant to sellunless they find the right partner, but they still consider this aviable option.

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

Implying that selling a credit card portfolio is limited tothose credit unions that are in some type of financial trouble isunfortunate and overlooks the obvious. To sell a credit cardportfolio, a credit union and its board of directors have made athoughtful and strategic decision that was looked at from allangles.

And that's simply good business.

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