UK-based financial company Virgin Money is planning to launch its own credit card business, after it agreed to acquire £1bn of assets from the Virgin credit card portfolio from Bank of America’s MBNA.
In 2002, Virgin Money teamed up with MBNA to offer marketing and direct distribution of Virgin credit cards, which is presently handled and serviced by MBNA through a partnership agreement.
Under terms of the agreement, the acquired credit card book will be completely transferred to Virgin Money’s own operations in early 2014, and until then, existing as well as new customers will continue to be served by MBNA.
David Buxton will be appointed as managing director, while MBNA former vice chairman Lance Weaver will join as the president of the Virgin Money Cards business.
The proposed credit card operation will be based in Gosforth, Newcastle and it will create 150 new jobs in the North-east region.
Royal Bank of Scotland and Allen & Overy offered advices to Virgin Money on the transaction.
Virgin Money provides savings, mortgages, credit cards, pensions, investment and, general insurance products (motor, home, travel, and pet) and life assurance products to the UK market.