Jane Adler

Credit cards can be a loss leader for small banks. A lean portfolio of low-margin cards rarely generates enough volume to produce big profits, and collections can be tedious and time-consuming for a small staff.

Collection law firms are on a tear, opening new offices in a bid to boost their own profits while providing clients with more national coverage.

Few in the credit card industry would dispute that debt sales have become a bona fide recovery method. Everyone also agrees debt prices are at historically high levels.

As certain partners, especially airlines, falter, cobranded card issuers are taking steps to diversify while bolstering some of their most prized card programs. Will the cobranded tree lose many leaves?