The $1.8 billion Kern Schools Federal Credit Union has sold its credit card portfolio to FIA Card Services, a subsidiary of Bank of America.
According to the Bakersfield Californian, the Bakersfield, Calif.-based credit union's cardholders will have to switch from fixed-rate cards to adjustable-rate cards as part of the sale. The credit union's name and logo will remain on the cards as part of an agent issuing agreement between the credit union and bank.
No one from the credit union has yet become available for comment on the sale.
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According to the CU's 5300 report from December of last year, the last quarter it owned the card portfolio, it held more than 38,000 cards worth almost $102 million in outstanding balances with an overall delinquency rate of 2.25%.
But the credit union's June data shows Kern Schools also running in the red by more than $30 million for the year, including the NCUSIF stabilization expenses.
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