LOS ANGELES - Bank Plus Corp. announced Tuesday that its Fidelity Federal Bank is selling most of its remaining credit card portfolio to an unnamed "international financial services company."
The $63 million American Direct Credit Inc. portfolio is being bought by the same firm that bought Fidelity's $78.4 million MMG Direct Inc. portfolio in June, Bank Plus said. Once the deal is completed, $2.2 billion-asset Fidelity would have credit card receivables of less than $10 million.
Bank Plus has lost nearly $70 million in the last two years, mainly because of defaults in Fidelity's subprime credit card portfolio. However, last month the company posted its first quarterly profit in over a year. It earned $2.8 million in the third quarter, compared with a loss of $2.4 million a year earlier.