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Capital One Takeover of Discover Portends More Predatory Credit Card Interest Rates and Junk Fees [1]

['Emily Hoyle']

Date: 2024-02-20 17:51:12+00:00

WASHINGTON, DC – Government watchdog Accountable.US calls the major announcement Capital One will buy out Discover Financial Services — merging two of the biggest U.S. credit card companies — nothing but a raw deal for American consumers. The proposal comes on the heels of a new report from the Consumer Financial Protection Bureau (CFPB) finding Capital One is among largest credit card issuers that offer cards with a maximum purchase APR over 30 percent, needlessly costing American families an extra $400 to $500 per year. The CFPB found lack of competition “likely contributes to higher rates at the largest credit card companies” – a problem that can only get worse under this proposed anti-competitive merger.

The deal also portends more junk fees, including higher service charges and late fees. Capital One boasted of $4.9 billion in profits after the company raked in nearly $1.7 billion from “service charges and other customer-related fees.”

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[1] Url: https://accountable.us/capital-one-takeover-of-discover-portends-more-predatory-credit-card-interest-rates-and-junk-fees/

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