CardWorks L.P., a credit card company specializing in servicing high-risk credit card portfolios, will take over servicing of $2 billion in credit card receivables of bankrupt cataloger Spiegel Group Inc., according to wire service reports.
Effective June 30, the Anew York-based fm’s Cardholder Management Service will take over tracking and collection of about 4 million Spiegel private label credit card accounts.
In February, the Securities and Exchange Commission ordered the company to cease its credit card operations after it missed several financial performance goals.
As part of its liquidation process, Spiegel was required to replace First Consumers National Bank (FCNB), its private label credit card issuer with an administrator at the earliest possible date (Direct Newsline, Feb. 26).
Cardholder Management will take over servicing of the Spiegel accounts at the end of June when the retailer shuts down FCNB.
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