The proposed marriage between private label credit card issuer Alliance Data Systems (NYSE: ADS) and Blackstone Group has ended in recriminations and lawsuits. Now ADS wants $170 million to return the ring.

Dallas-based Alliance Data made it official on Friday, announcing in a filing with the U.S. Securities and Exchange Commission that Blackstone had sent it a notice of termination that day. In response, Alliance Data said it was seeking a $170 million “business interruption” fee from Blackstone for failing to conclude the deal.

Alliance Data reported it may seek another $3 million from Blackstone for other charges.

Dallas-based ADS provides card services and payments processing for more than 85 merchants nationwide. Alliance Data’s World Financial Network National Bank has about $3.9 billion in private-label credit card receivables.

In May 2007, Blackstone bid $81.75 a share for Alliance Data. In January, Blackstone dropped the $6.4 billion purchase, claiming as onerous a requirement by the regulator Office of the Comptroller of the Currency that Blackstone provide $400 million as a “backstop” if Alliance Data’s bank ran into financial difficulties (“Blackstone Backs Off from Alliance Data Deal,” January 28).

Alliance Data shares were priced at $51.34 in mid day trading today, down 2.8 percent.