You know that Target card you have in your wallet. Not the debit card, but the credit card. Well Target has sold their book of customers and accounts to Toronto Dominion Bank (TD Bank) for a reported $6 billon. The price tag is equal to the entire amount of the amount due on the cards.
The agreement does not have any impact on Targetfs 5% REDcard Rewards program. And interestingly Target team members will continue to provide all servicing for Target Credit Card and Target Visa accounts.
So what is Target going to do with all that cash? Apparently they are going to use 90 percent of the proceeds to pay down debt. – SourceTarget Sells RedCard Credit Card Biz to TD Bank But Will Keep Servicing by Steve Rhode