On Wednesday, he said Ally’s “long-term strategic priorities remain intact” and its “industry-leading businesses and robust capital and liquidity positions will enable us to continue serving as a source of strength during these uncertain times for all of our customers.”Īlly’s shares fell 5.6% to $18.31 in Wednesday’s regular session before rallying by 9.2% to $20 in extended trading. Privately-held CardWorks is the parent company of Merrick Bank, which specializes in providing consumer loans to borrowers with subprime credit scores.Īs FinanceFeeds reports, “The acquisition of CardWorks was supposed to further diversify Ally’s product offerings, adding an established credit card platform, full-spectrum servicing and recovery operation and a nationwide merchant acquiring business.”īrown had called it “an important milestone in Ally’s evolution to be a full-service financial provider for our customer” and described CardWorks as “an ideal cultural fit for Ally.” The deal was the second-biggest bank acquisition announced in 2020. Merrick Bank, founded in 1997 as a wholly owned subsidiary of CardWorks, is an FDIC insured top-20 U.S. Neither company will incur any termination or break-up fees as a result of the decision to scrap the merger. CardWorks is a leading servicer of nationally-branded MasterCard/Visa cards, private label cards, secured cards, and other unique products, as well as secured and unsecured installment loans. “This was a difficult decision to make following a long process to bring two strong companies together,” he added. CardWorks is a leading servicer of nationally-branded MasterCard/Visa cards, private label cards, secured cards, and other unique products, as well as secured and unsecured installment loans. “Given the unprecedented economic and market conditions resulting from the COVID-19 global pandemic, Don Berman and I, along with our boards of directors, believe it is in the best interests of our customers and stakeholders to terminate the agreement,” Ally CEO Jeffrey Brown said in a news release. The two companies said Wednesday they had agreed to terminate the merger agreement they had announced in February, citing the impact of the COVID-19 pandemic. In June 2020, both companies mutually ended their planned merger, citing "unprecedented economic and market conditions resulting from the COVID-19.Ally Financial will not be completing its $2.7 billion acquisition of CardWorks, dealing a blow to its plans to diversify beyond auto loans. In February 2020, CardWorks announced that Ally Financial was acquiring it for $2.65 billion. CardWorks has 53 complaints in the last 36 months and 12 complaints over the previous year.ĬardWorks has 24/7/365 US-based customer support and has a very informative resource on its website, including blogs, training videos, and FAQs. Merrick is a principal member of VISA and MasterCard and is insured by the FDIC, and is a subsidiary of CardWorks, headquartered in Woodbury, New York. CardWorks' top 40 executives have an average tenure at the firm of over 15 years.ĬardWorks has an A+ rating with the BBB but is not accredited by the bureau. As noted prior, nearly a fifth of the staff has been with the company for over a decade. The company has over 1,700 employees and proudly emphasizes its expertise and dedication. The company has had deep expertise with veterinary clinics and animal hospitals based on its website since its founding in 1987 in Woodbury, NY.
CardWorks is also the parent of the 4.1 billion-asset Merrick Bank. CardWorks provides payment processing and POS solutions, along with several value-added e-Commerce services for merchants. The 183 billion-asset Ally, which is based in Detroit, agreed to buy CardWorks, a subprime credit card and consumer finance lender based in Woodbury, N.Y., in February.
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