SunTrust cuts credit card ties to B of A

The largest bank still issuing credit cards through Bank of America Corp. is moving to a new partner. 

SunTrust Banks Inc. of Atlanta said it would sever ties with a division of the former MBNA Corp. that issues cards for other banks.  Bank of America acquired MBNA in January, drawing SunTrust and other MBNA customers including Wachovia Corp. into an unwanted relationship with a retail banking competitor.

Wachovia ended the relationship and started issuing its own cards this summer.

SunTrust said this week that it has contracted with First National of Nebraska to issue cards on its behalf. First National is one of the nation's largest card issuers, and its bank branches don't overlap with SunTrust. SunTrust, which signed with MBNA in 1999, will change partners in January.

When it announced the MBNA acquisition, Bank of America estimated the loss of clients such as SunTrust and Wachovia could cause a 7 percent reduction in card revenues. A B of A spokeswoman said Thursday the division had increased its business since the merger, and the bank expected the trend to continue.

 

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