CUNA Mutual Pulls Out Of Credit Card Bank

MADISON, Wis. -- CUNA Mutual Group said Monday it is terminating its partnership in Union Financial Services, the would-be industrial loan company developing a credit card bank for credit unions. However, separate investors will go forward with an application with the FDIC for a Utah state chartered ILC that would buy and manage credit card portfolios for credit unions. The FDIC has enacted a six-month moratorium on all new ILC charters while it works to resolve a brewing controversy over requests by several non-financial entities, like Wal-Mart Stores, to enter the banking business through ILCs.