A&L sells credit card accounts

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.