CHARLOTTE, N.C. (12/7/11)--Credit unions will no longer be able to sell credit card portfolios to FIA Card Services, the Bank of America (BofA) unit that issues bank cards for other banks and credit unions under their names.
FIA Card Services had about 50 agent-bank relationships, which included banks as well as credit unions, Betty Reiss, spokesperson for BofA's consumer products division, told News Now in an e-mail.
"We decided earlier this year that the agent-bank card relationship--where we issue cards on behalf of other financial institutions and credit unions--was not core to our goal of building deep relationships, and we began the process of exiting those relationships," Riess said.
"We're doing this through a combination of portfolio sales and contract expirations," she added. "In many cases, our agent-bank card business has served predominantly single-service card customers with limited opportunity for Bank of America to do more business with them," Riess said. "Again, this is a process that started earlier this year."
FIA Card Services, based in Wilmington, Del., is the name BofA gave to the former MBNA, a card issuing bank that BofA acquired in 2006, according to the FIA Card Services and BofA websites. The current MBNA name is widely used in bank card issuing in Europe and Canada.