Minneapolis -- Target Corp. said it has completed the sale of its entire consumer credit card portfolio to TD Bank Group for $5.7 billion, the gross value of the outstanding receivables at the time of closing.
As previously announced, the two companies have entered into a seven-year program agreement under which TD will also underwrite, fund and own future Target Credit Card and Target Visa receivables in the United States. Under the program agreement, TD will control risk management policies and oversee regulatory compliance and Target will continue to perform account servicing functions.
"We’re pleased that we’ve completed the sale of our credit card portfolio," said Gregg Steinhafel, chairman, president and CEO of Target Corp. "We look forward to working with TD Bank Group, a premier financial institution, to provide innovative financial products to our guests and profitably grow the portfolio over time."
Under the seven-year program agreement, which applies to Target’s U.S. credit card operations, Target will maintain the current deep integration between its financial services operations and its retail operations. The agreement does not have any impact on Target’s 5% REDcard Rewards program.