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UPDATED info on Nordstroms/TD Bank take over....

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pizza1
Community Leader
Super Contributor

UPDATED info on Nordstroms/TD Bank take over....

Spoke with a scorce very close to the situation in the Nordies EO of credit services because I wanted a few things clarified. After a lengthy phone call, and some reassurrance, this is the breakdown.....

 

1).  TD Bank will own the debt, not service them. Officially takes over debt on October 1st.

 

2).  Nordstroms will continue to "service" the credit accts, meaning they still have control over approvals, and CLI on the existing accts, and upgrades to the Visa.  

 

3).  When you call in (in the future)...you will still talk to a Nordies employee, thats not going away. They assurred me that Mr. Nordstrom made it very clear in negoiations with TD Bank, that keeping the relationship with the current cardholders was very important, and will stay active in this.

 

4).  Even the online accts is NOT changing.  Meaning you will NOT have to "re-register" you card on TD Bank  site.  

 

5). Nordstroms will be sending out letters to all card holders very soon, about the change, and that the ONLY thing changing is that TD Bank owns the debt, they will continue

having an active role.

 

 

This makes me happy.  She said for me to call her back after my acct is 7 months old and she will increase my CL, that will not changeSmiley Happy

Message 1 of 7
6 REPLIES 6
Lyythine
Established Contributor

Re: UPDATED info on Nordstroms/TD Bank take over....


@pizza1 wrote:

Spoke with a scorce very close to the situation in the Nordies EO of credit services because I wanted a few things clarified. After a lengthy phone call, and some reassurrance, this is the breakdown.....

 

1).  TD Bank will own the debt, not service them. Officially takes over debt on October 1st.

 

2).  Nordstroms will continue to "service" the credit accts, meaning they still have control over approvals, and CLI on the existing accts, and upgrades to the Visa.  

 

3).  When you call in (in the future)...you will still talk to a Nordies employee, thats not going away. They assurred me that Mr. Nordstrom made it very clear in negoiations with TD Bank, that keeping the relationship with the current cardholders was very important, and will stay active in this.

 

4).  Even the online accts is NOT changing.  Meaning you will NOT have to "re-register" you card on TD Bank  site.  

 

5). Nordstroms will be sending out letters to all card holders very soon, about the change, and that the ONLY thing changing is that TD Bank owns the debt, they will continue

having an active role.

 

 

This makes me happy.  She said for me to call her back after my acct is 7 months old and she will increase my CL, that will not changeSmiley Happy


Thank baby Jesus in a manger... After my lovely experience with TD Bank Target card the other day, I was fully expecting to be closing my Nordstrom card in the near future.  Thanks for the info, Pizza!

 

Message 2 of 7
pizza1
Community Leader
Super Contributor

Re: UPDATED info on Nordstroms/TD Bank take over....


@Lyythine wrote:

@pizza1 wrote:

Spoke with a scorce very close to the situation in the Nordies EO of credit services because I wanted a few things clarified. After a lengthy phone call, and some reassurrance, this is the breakdown.....

 

1).  TD Bank will own the debt, not service them. Officially takes over debt on October 1st.

 

2).  Nordstroms will continue to "service" the credit accts, meaning they still have control over approvals, and CLI on the existing accts, and upgrades to the Visa.  

 

3).  When you call in (in the future)...you will still talk to a Nordies employee, thats not going away. They assurred me that Mr. Nordstrom made it very clear in negoiations with TD Bank, that keeping the relationship with the current cardholders was very important, and will stay active in this.

 

4).  Even the online accts is NOT changing.  Meaning you will NOT have to "re-register" you card on TD Bank  site.  

 

5). Nordstroms will be sending out letters to all card holders very soon, about the change, and that the ONLY thing changing is that TD Bank owns the debt, they will continue

having an active role.

 

 

This makes me happy.  She said for me to call her back after my acct is 7 months old and she will increase my CL, that will not changeSmiley Happy


Thank baby Jesus in a manger... After my lovely experience with TD Bank Target card the other day, I was fully expecting to be closing my Nordstrom card in the near future.  Thanks for the info, Pizza!

 


oh, I was VERY concerned and wanted straight forward answers, since I BK'ed a Target Visa for $2k in 2013, they wont even approve me for the store card for a measley $100 cl, lol.... I was concerned that Id never see a CLI on my nordies card ever again.  This new info made me feel a little better about the situation.  

Message 3 of 7
B335is
Moderator Emeritus

Re: UPDATED info on Nordstroms/TD Bank take over....

What is Nordies? Smiley Tongue

This is good news hopefully, I guess I've grown into a pessimist though and will really believe it when I see it.
Message 4 of 7
FinStar
Moderator Emeritus

Re: UPDATED info on Nordstroms/TD Bank take over....

I'm fairly certain this was the same echoing response that's already been floating around since the announcement (and likely the same that is given to other concerned cardholders reaching out to EO).  Doesn't really appear to be much news since the press release though.  Most of the info that you addressed with EO was known... I believe there were a couple more threads floating around in the Credit In The News area of the forums with similar info.

 

Straight from BBR:

 

Nordstrom and TD Bank Group announce strategic credit card relationship

Published 27 May 2015

 

Nordstrom and TD Bank Group have announced an agreement under which TD will acquire Nordstrom's existing US Visa and private label consumer credit card portfolio, which currently totals approximately $2.2bn in receivables.

 

In addition, the two companies have entered into a separate long-term agreement under which TD will become the exclusive U.S. issuer of Nordstrom-branded Visa and private label consumer credit cards to Nordstrom customers.

This transaction enables Nordstrom to retain all aspects of customer-facing activities, aligning with Nordstrom's strategy of enhancing the customer experience while allowing for improvement in capital efficiency.

"When we began this process a year ago, our number one goal was to continue to take care of our customers directly. We are pleased to meet this goal through our collaboration with TD, a premiere global financial institution and experienced credit card partner. We found TD to be a strong cultural fit, sharing our customer-focused approach and providing capabilities to help us further enhance the customer experience," said Blake Nordstrom, co-president, Nordstrom, Inc.

"This agreement with Nordstrom, achieved through great partnership and collaboration, continues the success of our growing North American credit card business," said Bharat Masrani, Group President and CEO, TD Bank Group. "TD will be working with one of the most highly respected retail brands in the world and one with a well-established, national customer base. We are excited that they have chosen us as their credit card partner."


Under the agreement, Nordstrom will sell its credit card receivables to TD at the time of closing. The companies have also entered into a long-term program agreement under which TD, as exclusive issuer in the U.S., will own Nordstrom Visa and private label consumer credit card accounts and fund the associated receivables.

Nordstrom will continue to perform account servicing functions, maintaining the current deep integration between its credit and retail operations. Nordstrom will continue to fund and manage the Nordstrom Rewards loyalty program, Nordstrom debit cards, and Nordstrom employee accounts.

The terms of the Nordstrom Rewards loyalty program will remain unchanged as a result of this transaction. Nordstrom will be entitled to receive a substantial portion of net revenue generated by the credit card accounts.

Subject to regulatory approvals and other customary conditions, this transaction is expected to close in the second half of calendar 2015 and to have a minimal impact on Nordstrom cardholders, customers and employees.

TD will fund the transaction with available resources. Nordstrom is currently assessing plans for the use of proceeds in a manner that aligns with its capital allocation approach of returning shareholder value. Nordstrom expects to provide a further update on the financial impact of the transaction in the second half of 2015.

Message 5 of 7
TRC_WA
Senior Contributor

Re: UPDATED info on Nordstroms/TD Bank take over....


@pizza1 wrote:

 

 

2).  Nordstroms will continue to "service" the credit accts, meaning they still have control over approvals, and CLI on the existing accts, and upgrades to the Visa.  

 


Good to know.

 

When they gave my auto CLI from $2500 to $4500 last month the rep told me to give it 6 months for my next CLI and the VISA conversion.  Glad I don't have to worry about it now...

 

... I'll get it.

 

 

FICO8 current as of : 4-17-24 EQ: 724 TU: 707 EX: 706
Hard INQs last 12 months: EQ: 5 | TU: 8 | EX: 9
Verizon Visa $8500 Amex Delta Reserve $10,000 Care Credit $18,000
NFCU CashRewards $7500 Apple Card $7000 Best Buy $8000 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) 6.95%
NFCU motorcycle loan (2024 Harley Davidson Road Glide - Alpine Green & Chrome) 9.45%
Total CL: $64,000 --- Total CC UTI: 27% --- AAoA: 5.5 years --- Income: $200k
Last app: 4-6-24
Message 6 of 7
SEBanker
Valued Member

Re: UPDATED info on Nordstroms/TD Bank take over....

As a banker I can say that it is extremely unlikely that there is a bank  that would buy a credit card portfolio where they had no say in cli approvals or the approval of new accounts. A bank would not want to wake up one morning to find that Nordstrom has issued thousands of thousands of accounts to customers that may not necessarily be able to repay and the bank be on the hook for it.  Not to mention the regulators of banks would never permit the bank and it's depositors to be placed at risk because of credit decisions being made by a 3rd party.  Now...Nordstrom may maintain a special group that would act as a liason and a advocate for a customer.  They may even have some type of liability sharing arrangement where Nordstrom would take financial responsibility for accounts they ask to be approved outside of the banks policies.  But you will most likely see changes in the underwriting and extension of credit after TD Bank takes over. 

Message 7 of 7
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