Northern Rock, Co-op break credit card partnership

Posted 2008-02-13

Struggling lender Northern Rock has cancelled its credit card tie-up with the Co-operative Bank, leaving the Co-op without a credit card deal.

However, both sides admitted that the timing was coincidental, as Northern Rock had stopped selling the Co-ops credit cards under its own brand in November.

The Rock sold its credit card business to the Co-op in 2003, although under the terms of the deal it continued to sell cards under its own brand.

When it was sold, the business had 90,000 customers and £271 million of outstanding balances.

According to the Independent, the Co-op Bank said: “With effect from 30 November 2007, the Co-operative Bank ceased to offer its Northern Rock branded credit cards to new customers.

“Existing customers were not affected and continue on their existing terms and conditions as normal. This decision was not a result of any liquidity issues surrounding Northern Rock.”

The Co-op has said it is now concentrating on its own branded credit cards for the future.

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