Another CU-Owned Option Emerges for Card Sales

DES MOINES, Iowa – TMG Financial Services, a newly formed affiliate of the Iowa CU League’s The Members Group, announced yesterday it has launched a card agent issuing program, the latest credit union-owned option for credit unions wanting to shed their cards programs. The aim of the program is to allow credit unions to retain their brand on credit cards, as well as their relationship with their members. The major difference from other cards programs is TMG is offering an ownership stake to credit unions and hopes to eventually spin it off to credit unions, according to Jeff Russell, executive vice president of the venture. Another difference is TMG will offer selling credit unions an opportunity to invest their proceeds into loan participations underwritten by TMG, he said. The Members Group, which has been processing cards for Iowa credit unions for 20 years, will provide the processing and servicing of the cards programs, which will be transacted over the MasterCard network. TMG is owned by The Members Group, which is owned by the Iowa League and Iowa Corporate CU.