DES MOINES, Iowa – The Members Group, the newest entry to the market for credit union card portfolios, is financing increasing numbers of cards purchases by loans from credit unions it is calling its collateralized advanced program.
Under the offer, available to all credit unions, the loan has a standard term of two years, which pays a fixed rated locked in at the time of a credit union’s commitment – currently 4%. The loans are backed by credit card receivables.
TMG, an affiliate of the Iowa CU League, said it has acquired $116 million of card receivables and 40,000 accounts in the less than two years it has been purchasing credit union cards.
At the end of 2009, TMG acquired card portfolios from Fitchburg FCU, United Financial CU, 1st Financial FCU, First Class CU, Synergy One FCU and Kohler CU.
