Virgin Money announce £1 billion MBNA deal
- By Jack Preston -
- Jan 22, 2013
Virgin Money has announced that it will launch its own credit card business, following an agreement to buy £1 billion of assets from the Virgin credit card portfolio from MBNA Ltd.
There will be no changes to customer pricing or core terms and conditions as a result of this transaction, with customers being able to continue to use and service their Virgin credit card in exactly the same way as normal.
In addition Lance Weaver, former Vice Chairman of MBNA Corporation, is joining Virgin Money as President, Virgin Money Cards, a UK based position. Weaver has extensive banking and cards industry experience including periods at Wells Fargo and Citibank, as well as serving as Chairman of MasterCard International Inc.
"Launching Virgin Money Cards is an excellent strategic opportunity for Virgin Money, in a market we know well. A credit card business will complement our existing mortgages and savings business and represents another significant step in growing our bank,” explained Jayne-Anne Gadhia, Chief Executive at Virgin Money.
“I am delighted that Lance Weaver will be joining us and that we will be able to benefit from his expertise and his experience. There is no-one better to help us build a cards business that can bring some fresh new competition to the UK market.”
Virgin Money has partnered with MBNA since 2002, providing marketing and direct distribution of credit cards. The bank’s new credit card operation will be based in Gosforth, Newcastle and is expected to create at least 150 new jobs, bringing further employment to the North-east region.
To find out more about their services, head over to the Virgin Money website.