CHARLOTTE, N.C. Wachovia Corp., which had sold its credit card portfolio to Bank One Corp. in July, said Friday that the companies were rescinding parts of the deal because of the merger between Wachovia and First Union Corp., which already had a credit card relationship with MBNA Corp.
Wachovia and First Union said they would end their agent bank relationship, which was part of the sale of Wachovias credit card portfolio to Bank Ones First USA credit card division. The companies also said that Bank One will sell back to Wachovia about $1.3 billion of the receivables it bought, loans that belong to cardholders who are also retail customers of Wachovia. Bank One will keep the $6.2 billion of receivables from cardholders who are not customers of Wachovias retail bank.
Wachovia said it will pay Bank One a $350 million termination fee and repay Bank One the premium paid for the now-returned receivables. Earlier, Wachovia had reported a pretax gain from the sale of about $1.3 billion. More recently it said that $450 million had been set aside in contemplation of these events.