MINNEAPOLIS — Target Corp. has sold its consumer credit card portfolio to TD Bank Group for $5.7 billion, the mass merchandise retailer said.
Target said that under the seven-year deal, TD Bank will underwrite, fund and own future Target Credit Card and Target Visa receivables in the United States, control risk management policies and oversee regulatory compliance. Meanwhile, Target will perform account servicing functions and maintain the current integration between its financial services operations and retail operations; the agreement will have no effect on its 5% REDcard Rewards program.
"We're pleased that we've completed the sale of our credit card portfolio," Target Corp. chairman, president and CEO Gregg Steinhafel said. "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."
The company said that president of financial and retail services Terry Scully would retire in March 2014 and move into a strategic advisory role starting on April 1, 2013.
In other news, Ecolab chairman and CEO Douglas Baker and Yahoo! COO COO Henrique De Castro have been appointed to Target's board of directors, effective immediately, the company said.
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