Virgin Money is selling Church House Trust, the bank it acquired in January 2010 in order to give it a platform to enter the UK retail banking market.
SAV Credit is acquiring Church House Trust, subject to FSA approval.
The deal is expected to close in the first half of 2013.
Virgin Money declined to disclose the size of the deal.
SAV Credit says it will retain the staff of Church House Trust and the bank’s Yeovil base.
SAV chief executive officer James Corcoran says: “The acquisition of Church House Trust is a significant step forward in the ongoing development of SAV Credit from its core credit card business.
“The business provides a platform for growth in other product areas.”