A&L sells credit card accounts

There are 1.34m Alliance & Leicester credit cards in circulation

Alliance & Leicester has sold its credit card accounts to MBNA Europe Bank for more than £225m.

The new partnership between the two companies involves the marketing and management of new and existing cards.

All new and existing cards will continue to be branded Alliance & Leicester (A&L), the company said.

But customer service functions and administration and will transfer to MBNA, with MBNA becoming the credit card provider.

Cost saving

There are currently 1.3 million A&L cards in circulation in the UK.

The bank said that it had taken the decision to sell the accounts, because the credit card market was becoming increasingly global - and it did not have the "scale" to compete with these companies.

MBNA is one of the the world's largest credit card companies.

A&L said the decision was also part of its strategy to focus on four "core" products areas: Current accounts, personal loans, savings and mortgages.

Other partnerships

The bank recently announced an extension of its partnership with Legal & General to sell life assurance products.

In May 2001 it began selling the life assurer's long-term savings products.