Target Card Charge Offs Rise to More than 8 Percent - selling portfolio
Target Card Charge Offs Rise to More than 8 Percent
April 23, 2008
Target Corp.’s credit cards saw higher charge offs in March as the mega-merchant proceeds with its sale of half of the $8.3 billion portfolio.
by Burney Simpson
insideARMTarget Corp. (NYSE: TGT) reported yesterday that its credit card portfolio in March had net charge offs of $55.4 million, for an annualized rate of 8.12 percent, according to the retailer’s filing with the U.S. Securities and Exchange Commission. Target reported net charge offs of $47.5 million in February, for an annualized rate of 6.83 percent.
Receivables on the portfolio declined to $8.3 billion at the end of March from $8.4 billion. Target announced in March it planned to sell half the portfolio for about $4 billion to an unnamed investor (“Target to Sell Half of Card Portfolio,” March 13). Target issues the card through its Retailers National Bank.
The portfolio generated total revenues of nearly $1.5 billion, including interest, payments on purchases, finance charges, interchange and other fees. Total delinquencies tallied $517.2 million. For its delinquencies total, Target combines two missed payments, three missed payments and four or more missed payments.
The portfolio had gross charge offs of $63.3 million, and recoveries of $7.8 million, leading to net charge offs of $55.4 million.
Target files a monthly update on its Target Credit Card Master Trust with the SEC.
Target this week also renewed its card processing agreement with TSYS, according to an announcement from the Columbus, Ga.-based payments processor. TSYS cited reports that Target was one of the top-five Visa credit card issuers, with more than 21.4 million accounts on file.
Target always charged me about 20% interest on my Visa. I didn’t matter how perfect my credit rating was. Several times I requested a lower rate and they declined.
Over 8% in chargeoffs is pretty high! Well, their greed finally paid off. I suppose my play money didn’t help with the delinquencies:
Open Letter to Target: Why I stopped paying my Target Visa card
Posted by Christine on 04/23/2008 at 01:46 PM
2004 Suit (credit limits, credit reporting - on appeal) • RNB (Target) - FINALLY reporting credit limits • (0) Comments • Permalink
