Bank of America to Discontinue Issuing CU Credit Cards (Misc News: December 6, 2011)
Bank of America is getting out of the business of issuing credit cards on behalf of credit unions.
According to CU Times, BofA has decided that the agent card issuing business is no longer key to its core operations.
BofA released a statement saying that its card issuing arm, FIA Card Services, will no longer purchase credit card portfolios from credit unions and issue the cards in the credit unions' names. Credit unions which currently issue cards with Bank of America have been told that their contracts will not be renewed after they expire.
Industry experts say the move will mean that 40-50 credit unions nationwide will either need to find a new card issuer or start re-issuing cards for themselves.
BofA launched FIA Card Services after its merger with MBNA, a card-issuing bank, in 2006.