INDIANAPOLIS – Eli Lilly FCU on Tuesday said it bought back its $20-million Visa cards portfolio from Bank of America’s FIA Services unit and will have the 6,500 accounts serviced by credit union-owned The Members Group.
The credit union had sold the portfolio in 2002 under an agent agreement to MBNA, which later was acquired by BofA.
Rick Jones, senior vice president for Eli Lilly FCU, said what prompted the buy back of the cards portfolio was BofA’s announced plan to sell its affinity cards, with the bank giving its agent issuers the right of first refusal. Jones added the credit union was not satisfied with the way its card-holding members were being treated, with respect to managing payments, interest rates and other facets, and its high liquidity made it a good time to buy back the portfolio, he said.
The credit union began a teaser marketing campaign in April highlighting Monday, the day the cards returned to the credit union – promising members that “Something big is coming to your credit union.” May 21 was the first day that members could apply for the new card.
Eli Lilly FCU has offered to pay off members’ highest-rate debt first, in order to “help members pay down debt,” said Jones.
