Target Closes Sale of Credit-Card Portfolio
MINNEAPOLIS-Target has completed the sale of its entire credit-card portfolio to TD Bank Group for $5.7 billion.
As previously announced, the two companies have formulated a seven-year program under which TD will also underwrite, fund and own future Target credit-card and Target Visa receivables in the United States. Under this agreement, according to a Target statement, TD will oversee both risk-management policies and regulatory compliance, while Target will continue to perform account-servicing functions.
Also under this agreement, Target will maintain the integration between its financial-services operations and its retail operations. The statement said this agreement won't affect Target's 5% REDcard Rewards program.