Target to Sell Credit Card Biz to TD Bank Group

Target card customers likely will not see a significant impact from the announcement today that the discount retailer will sell its consumer credit card portfolio to TD Bank Group.
Target said it is selling its portfolio, with a gross value of about $5.9 billion, as part of a seven-year agreement under which TD will underwrite, fund and own future Target card receivables
TD Bank will control risk management policies and regulatory compliance and Target will continue to perform account servicing functions.
The agreement does not have any impact on Target’s 5 percent REDcard Rewards program. Target team members also will continue to provide all servicing for Target Credit Card and Target Visa accounts.
“The portfolio sale and program agreement are designed to have minimal impact on Target’s current cardholders, guests and the Target team members who support financial products and services,” the retailer said in a statement.
TD Bank is looking to significantly expand its presence in the North American credit card business.

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