MINNEAPOLIS (12/29/11)--The credit card portfolio being acquired by U.S. Bank's Elan Financial Services unit from Bank of America includes small business and consumer cards from 28 credit unions and other financial institutions, U.S. Bank said Tuesday.
U.S. Bank bought BofA's $700 million portfolio of credit cards through Elan after BofA announced earlier this month it was exiting the business of handling cards for other financial institutions.
That meant credit unions are no longer able to sell card portfolios to FIA Card Services, the BofA unit that issues bank cards for other banks and credit unions under their names (News Now Dec. 7).
Although terms of the deal and the purchase price were not released, it is one of the largest credit card acquisitions Elan has made in its four decades of existence, according to the Minneapolis Star Tribune (Dec. 28).
Elan said it will continue branding and marketing the cards under the names of the 28 other financial institutions.