Old Jun 25, 19, 10:03 am
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Originally Posted by mia View Post
There is. Citi bought the account balances from American Express and paid a billion dollar premium. There wouldn't be a premium if there were no finance charge revenue stream.
Wouldn’t there still have been a premium to pay so that Amex wouldn’t be able to still keep the card members on a card type which it would no longer be able to offer but may have otherwise been able to retain?

Finance charge revenue streams are of course a factor in how much of a premium an asset acquirer may or may not want to pay to buy a portfolio.
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