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☆ Judge blocks Biden administration rule capping credit card late fees at $8
▼ + stars: | 2024-05-11 | by ( Eva Rothenberg | ) edition.cnn.com time to read: +3 min

New York CNN —A federal judge in Fort Worth, Texas, on Friday blocked a new Biden administration rule that would prohibit credit card companies from charging customers late fees higher than $8. “Consumers will shoulder $800 million in late fees every month that the rule is delayed — money that pads the profit margins of the largest credit card issuers. The new rule would apply to large credit card issuers — those with more than 1 million accounts. The push to target credit card fees is part of the Biden administration’s efforts to ease financial burdens for many Americans. The new rule also intended to close a 2010 loophole the CFPB says has been “exploited” by credit card companies to hike fees on late payments.

Persons: Mark T, Pittman, Donald Trump, ”, Chuck Bell, Biden Organizations: New, New York CNN, Biden, US, Chamber of Commerce, Consumer Financial, CNN, of Commerce, Consumer Locations: New York, Fort Worth , Texas

☆ The rule capping credit card late fees at $8 is on hold — here’s what it means for you
▼ + stars: | 2024-05-10 | by ( Hugh Son | ) www.cnbc.com time to read: +2 min

The U.S. banking industry won a key victory in its effort to block the implementation of a Consumer Financial Protection Bureau rule that would've drastically limited the fees that credit card companies can charge for late payment. The CFPB estimates that the rule would've saved American families $10 billion a year in fees paid by those who fall behind on their bills. It would've capped late fees that are typically $32 per incident to $8 each and limited the industry's ability to hike the fees. "Consumers will shoulder $800 million in late fees every month that the rule is delayed — money that pads the profit margins of the largest credit card issuers," a CFPB spokesman told CNBC on Friday. The CBA said it will continue to press its case in the courts on why the CFPB rule should be "thrown out entirely."

Persons: Rohit Chopra, Mark Pittman, would've Organizations: Consumer Financial Protection Bureau, Banking, Housing, Urban Affairs Committee, Washington , D.C, Financial, Bureau, Northern, Northern District of Texas, U.S . Chamber of Commerce, U.S, CNBC, Consumer Bankers Association, District, CBA Locations: Washington ,, U.S, Northern District

☆ CFPB rule to save Americans $10 billion a year in late fees faces possible last-minute freeze
▼ + stars: | 2024-05-09 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

A Consumer Financial Protection Bureau regulation that promised to save Americans billions of dollars in late fees on credit cards faces a last-ditch effort to stave off its implementation. Led by the U.S. Chamber of Commerce, the card industry in March sued the CFPB in federal court to prevent the new rule from taking effect. That could hold up the regulation, which would slash what most banks can charge in late fees to $8 per incident, just days before it was to take effect on Tuesday. The credit card regulation is part of President Joe Biden's broader election-year war against what he deems junk fees. Big card issuers have steadily raised the cost of late fees since 2010, profiting off users with low credit scores who rack up $138 in fees annually per card on average, according to CFPB Director Rohit Chopra.

Persons: Tobin Marcus, Joe Biden's, Rohit Chopra Organizations: Financial, Bureau, U.S . Chamber of Commerce, D.C, Northern District of, Wolfe Research Locations: Texas, Washington, Northern District, Northern District of Texas

☆ US regulators are looking at potential ‘bait and switch’ schemes with airline-affiliated credit card reward points
▼ + stars: | 2024-05-09 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +3 min

New York CNN —If you use a points-and-rewards credit card offered by an airline in partnership with a big bank, how much are the points you’ve accrued worth in dollars? The terms and conditions of such card programs can be confusing and in some instances they can be changed at any time. “For many families looking to finance a trip or a vacation, those [credit card] benefits are really valuable. “[But] our review of all the fine print suggests that credit card companies and airlines have the power to quickly and dramatically devalue those points by making it more challenging to redeem them. Such a drop in revenue, banks argue, could jeopardize the availability of rewards programs.

Persons: you’re, It’s, ”, Rohit Chopra, Chopra, Transportation Peter Buttigieg, Rob Nichols, ” Nichols, Nichols, Jaret, Seiberg, Biden, Trump Organizations: New, New York CNN, Department of Transportation, Consumer Financial Protection Bureau, Transportation, American Bankers Association, Cowen Washington Research Group Locations: New York, CFPB, U.S

☆ The credit-card industry's Hail Mary push to keep charging you bigger late fees
▼ + stars: | 2024-05-09 | by ( Paul Squire | ) www.businessinsider.com time to read: +2 min

Hoping to say goodbye to high credit-card late fees? A judge could side last minute with credit-card companies trying to stop a new cap on fees. AdvertisementCredit-card companies aren't giving up their late fees that easily. In March, the Consumer Financial Protection Bureau announced that the federal government had made a new rule capping credit-card late fees. Despite an election-year push by President Joe Biden to cut down on so-called "junk fees," credit-card companies won't go quietly, she wrote.

Persons: —, they've, wouldn't, Emily Stewart, Joe Biden, Stewart, Matt Schulz Organizations: Service, Consumer Financial, Bureau, CNBC, US Chamber of Commerce Locations: Texas

☆ What exactly goes into closing costs?
▼ + stars: | 2024-05-04 | by ( Samantha Delouya | ) edition.cnn.com time to read: +6 min

But there is an often-overlooked expense when buying a home: closing costs. At the same time, the Biden administration plans to take aim at so-called “junk fees” hidden in closing costs. New York, Delaware and Washington, DC, have the highest average closing costs, according to Bankrate; while Missouri, Indiana and North Dakota have the lowest. Lowering closing costs on your ownThere is one relatively simple way to lower your overall closing costs: shop around. “When you compare those offers, examine not just the rate itself but also the closing costs.

Persons: homebuyers, —, Biden, ” Jeff Ostrowski, , ” Ostrowski, you’re, homebuyers haven’t, Brian Connolly, it’s, “ It’s, ” Connolly, Connolly, ”, Freddie Mac, ” Genaro Villa Organizations: CNN, Consumer Financial, National Association of Realtors, realtors, University of Michigan, NAR, homebuyers Locations: New York , Delaware, Washington, Missouri, Indiana, North Dakota, Bankrate, AnnualCreditReport.com

The cost of pawn shop loans can be high, but in some situations they can offer financial leeway. How pawnshop loans workThe process of getting a pawnshop loanPawnbrokers assess your items just as they do for customers looking to pawn for a direct sale. About 60% of users of pawn loans, title loans, or payday loans were turned down partially or in full for requested mainstream credit sources, according to the CFPB. Unlike qualifications for personal loans, pawn loans don't require a credit check or information on financial assets. Pawnshop loans can get expensive because they have higher interest rates and fees compared to traditional loans.

Persons: you've, You'd, you'll, They're, you'd, Kate Underwood Kate Underwood Kate Underwood, www.kateunderwoodwriter.com Read Organizations: U.S . Department of, National Pawnbrokers Association, Consumer Financial Protection Bureau, Chevron Locations: Virginia Beach , Virginia, Richmond , Kentucky

☆ Coding boot camp BloomTech and CEO Austen Allred deceived students, US government agency says
▼ + stars: | 2024-04-17 | by ( Rosalie Chan | ) www.businessinsider.com time to read: +1 min

The CFPB issued an order against coding boot camp BloomTech and CEO Austen Allred. The CFPB said BloomTech, formerly known as Lambda School, deceived students. The Consumer Financial Protection Bureau issued an order against coding boot camp BloomTech and its CEO, Austen Allred, on Wednesday. The CFPB said the coding boot camp, previously known as Lambda School, deceived students about the cost of loans and made false claims about graduates' hiring rates. In addition, BloomTech must pay $64,000 and Allred must pay $100,000 in civil penalties, which will go toward a victim relief fund, according to the agency.

Persons: Austen Allred, BloomTech, CFPB, Allred Organizations: Lambda School, Consumer Financial, Business

☆ Department stores face another squeeze. This time, with store credit card revenue
▼ + stars: | 2024-04-10 | by ( Melissa Repko | In Melissa-Repko | ) www.cnbc.com time to read: +6 min

For fiscal year 2023, credit card revenue totaled $619 million for Macy's and approximately $475 million for Nordstrom . The three companies do not break out how much of total credit card revenue comes from late fees. All of that adds up to dwindling credit card revenue for retailers, who can now expect to see it shrink even further. Target's credit card revenue fell to $667 million last year, down from $734 million in the prior fiscal year. Gap does not disclose credit card revenue, but its Chief Financial Officer, Katrina O'Connell, said on an earnings call that losses from late fees will be "largely offset in 2024 by other levers within our credit card program."

Persons: Robert Nickelsberg, it'll, Jane Hali, Kohl's, David Silverman, Silverman, —, Michael Fiddelke, Macy's, Adrian Mitchell, It's, Nordstrom, Katrina O'Connell Organizations: Getty Images Department, Consumer Financial, Bureau, Associates, Nordstrom, Fitch, TD Bank, Shoppers, Adobe Analytics, Citi, Sam's Locations: New York City

☆ Credit Card Companies Are About to Invent New Fees for Consumers
▼ + stars: | 2024-04-07 | by ( Emily Stewart | ) www.businessinsider.com time to read: +8 min

Some of those annoying fees on your credit card may soon be getting smaller. Banks and credit-card companies are almost certainly trying to figure out where else they squeeze money out of you. The response to the interchange-fee settlement has been a bit more muted: The Electronic Payments Coalition, which represents Visa, Mastercard, and other credit-card companies, said it was OK with the swipe-fees cap. Taken together, it's clear that many companies in the credit-card business would rather not be dealing with this situation. According to the Merchants Payments Coalition, Mastercard is now planning to increase different credit card fees soon, it's "network assessment" fee.

Persons: Banks, Matt Schulz, JPMorgan Chase, Mark Elliot, Doug Kantor, Mark Mason, Rich Fairbank, We've, it's, Ira Rheingold, Amanda Jackson, Emily Stewart Organizations: Consumer Financial, Mastercard, Visa, Bank Policy Institute, Electronic Payments Coalition, UBS, JPMorgan, American Express, National Association of Convenience Stores, Merchants Payments Coalition, Capital, JPMorgan Chase, National Association of Consumer, Companies, Financial Reform, Business

☆ ‘I am so scared of them now’: Burned from overspending, some ‘buy now, pay later’ users warn others away
▼ + stars: | 2024-03-30 | by ( J.J. Mccorvey | ) www.cnbc.com time to read: +8 min

But the $6,000 in BNPL loans she'd racked up over roughly two years felt frivolous, she said, especially because they're planning to buy their first home. Many are seeking cover from high credit card interest rates. After trimming her discretionary spending and sticking to home-cooked meals, she said she's been able to whittle down her BNPL debt to about $1,200. Klarna said it had responsible spending limits for its users, whose average outstanding balance is $150, compared to the more than $6,000 for credit card users. Baird, for her part, acknowledged BNPL services can make inflation and high interest rates feel "easier" for those who can keep their shopping impulses under control.

Persons: Tia Whiteside, Whiteside, she'd, Dyson, she's, Marcus, whittle, Ben Lourie, Lourie, aren't, I've, Amy Baird, Baird, Kevin Mahoney, Mahoney, —, Afterpay, Klarna, Sen, Sherrod Brown, Raphael Warnock, John Fetterman, Brown Organizations: LexisNexis, Solutions, University of California, UC Irvine, Singapore Management University, PayPal, Consumer Financial Protection Bureau, Financial, D.C, Sens, NBC News Locations: Greenville , South Carolina, Irvine, Stanford, Dallas, Washington, Ohio

☆ Over 27,000 student-loan borrowers are getting $4.1 million in payments in the mail after debt relief companies 'lured' them into 'fake loan forgiveness claims,' a federal consumer agency says
▼ + stars: | 2024-03-14 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Read previewThousands of student-loan borrowers are getting checks in the mail after paying companies accused of scamming them for debt relief services. The Federal Trade Commission on Wednesday announced it would be sending over $4.1 million in refunds to 27,584 borrowers who gave money to South Dakota corporations Mission Hills Federal and Federal Direct Group. According to the press release, the FTC said the companies "lured consumers with fake loan forgiveness claims and pocketed their money." Advertisement"Moreover, because Defendants have failed to apply most or any of consumers' payments to their student loans, many consumers have accrued additional capitalized interest on the balance of their loans," the complaint said. Those with questions about the payments can contact JND Legal Administration — the company overseeing FTC's refunds — at 844-566-0108, or seek information through the FTC's refund information website.

Persons: — Organizations: Service, Federal Trade Commission, Wednesday, Mission Hills Federal, Federal Direct Group, Business, FTC, Court, Central, Central District of, —, Consumer Financial, Education Department Locations: South Dakota, Central District, Central District of California, California, reportfraud.ftc.gov

☆ CFPB Director Rohit Chopra responds to lawsuit against $8 credit card late fee cap
▼ + stars: | 2024-03-11 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCFPB Director Rohit Chopra responds to lawsuit against $8 credit card late fee capConsumer Financial Protection Bureau Director Rohit Chopra joins 'The Exchange' to discuss the status of the $8 late fee cap for credit cards amid lawsuits, efforts to make mortgage closing costs more affordable, and more.

Persons: Rohit Chopra Organizations: Financial

☆ Opinion: The one thing Biden and Trump agree on
▼ + stars: | 2024-03-10 | by ( Richard Galant | ) edition.cnn.com time to read: +17 min

We’re looking back at the strongest, smartest opinion takes of the week from CNN and other outlets. That reference to Election Day is perhaps the only line in Trump’s speech that President Joe Biden would agree with. In another America, they would be collegial members of the Presidents Club, bonding over memories of how they overcame their thorniest challenges. “Biden sounded like he’s ready to go toe to toe with former President Donald Trump and win in November. Paul Sracic noted that Biden lost White voters without college degrees by 35 points in 2020.

Persons: CNN — “, Donald Trump, Joe Biden, Franklin D, Biden, …, Lincoln, Roosevelt’s, Trump, Joe Biden’s, ”, Jill Filipovic, Clay Jones, David Gergen, Daniel McCarthy, “, ” “ Biden, Ronald Reagan, Bill Clinton, wasn’t, ” Carrie Sheffield, ” Sheffield, “ Joe Biden, Roxanne Jones, “ Biden, Julian Zelizer, White, Paul Sracic, MAGA, Keith L, Magee, Patrick T, Brown, Dobbs, Roe, Wade, —, Bill Bramhall, Nick Anderson, Manisha Sinha, ” “, Abraham Lincoln, SCOTUS, Anderson, ” Sinha, Frida Ghitis, David Mark, Trump Drew Sheneman, CNN “, Cupp, Hillary Clinton, “ deplorables, ” Cupp, Bill McGuire, Jason Momoa, Ed Mierzwinski, Elena Sheppard, Kara Alaimo, It’s, Euny Hong, Greta Gerwig’s, Sandra, O’Connor, Jason Kelce, Matt Rourke, Jason Kelce’s, Amy Bass, “ Kelce, ” Bass, Jason, ” Dana Summers, Errol Louis, Liam Kerr, Sinema, Richard Salgado, Levinson Moriarty, Celine Song, Greta Gerwig, Barbie, Justine Triet, Alberto Rodriguez, Jaap Buitendijk, Kate Green, “ Oppenheimer, Noah Berlatsky, “ Barbie, “ It’s, ” Berlatsky, Barbie ’, Bradley Cooper’s, Maestro ’, Christopher Nolan’s ‘ Oppenheimer, clichés, Alexander Payne’s ‘, ’ Organizations: CNN, Super, GOP, Trump, Union, Presidents Club, “, Democratic, Twitter, Agency, Tribune, Supreme, Republican Party of, MSNBC, Consumer Financial, US Chamber of Commerce, US, Jason Kelce Philadelphia Eagles, Monday, Pro, Bowl, White, Warner Bros, Everett, Getty Locations: America, Joe Biden’s State, Trump, Washington, United States, Civil, American, New York City, Chicago, Denver, “, Paris, France

☆ Wells Fargo has cleared 6 regulatory hurdles since Charlie Scharf took over as CEO in 2019. Here’s how shares reacted to each
▼ + stars: | 2024-03-09 | by ( Morgan Chittum | ) www.cnbc.com time to read: +7 min

Since taking over as CEO of Wells Fargo in 2019, Charlie Scharf has been cleaning up the bank. Wells Fargo stock gained 59% for all of 2021 compared with the KWB's 36% rise. Jan. 5, 2021: During the same year, Wells Fargo announced that an OCC consent order from 2015 had been terminated. Wells Fargo shares plunged nearly 44% in 2020, which were the early days of the Covid pandemic. Wells Fargo bank signs in New Brighton, Minnesota.

Persons: Charlie Scharf, Wells, Morgan Stanley, they've, Scott Siefers, Piper Sandler, we're, Scharf, Wells Fargo, Jeff Marks, Marks, Jan, Jim Cramer's, Jim Cramer, Jim, Michael Siluk Organizations: Management, CNBC, Federal Reserve, Currency, JPMorgan Chase, Bank of America, KBW, Club, OCC, Wells, Financial Protection Bureau, Silicon Valley Bank, Wells Fargo, UCG, Getty Locations: Wells Fargo, Wells, Silicon, New Brighton , Minnesota

The Biden administration has limited credit card late fees to $8, a 75% reduction. Federal Reserve BoardA study by the CFPB published in 2022 showed that credit card late fees are disproportionally collected from people in low-income neighborhoods. The Good Brigade/Getty ImagesReduced credit card late fees would also be worth about $414 million to the real estate industry. A drop in the bucket of credit card costsCredit card debt is now at record levels and interest rates on those cards have soared. Interest and other credit card fees cost consumers more than $1,100 a year and are still growing.

Persons: Biden, Vance Ginn, Jenny Thorvaldson, Thorvaldson Organizations: Consumer Financial, Business, IMPLAN, Biden, Federal Reserve Bank, Federal, Brigade, Centers for Disease Control, Money Management, MMI

☆ As late, missed payments rise, credit card borrowers face 'consequences' for falling behind, CFPB says
▼ + stars: | 2024-03-06 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

watch nowThe consequences of missed credit card paymentsThe CFPB found that late fees are often layered on top of other punitive measures credit card companies impose on consumers who miss payments, including negative credit reporting, which can hurt their credit rating. "When consumers don't make required payments, they can face a long list of consequences. More consumers are falling behindCollectively, consumers are having a harder time managing debt amid high interest rates and higher prices. Not only are more cardholders carrying debt from month to month but more are also falling behind on payments, recent reports also show. Credit card delinquency rates surged in 2023, the Federal Reserve Bank of New York found.

Persons: Rohit Chopra, — Organizations: Consumer Financial Protection Bureau, Federal Reserve Bank of New, New York Fed Locations: Federal Reserve Bank of New York

☆ Credit card late fees will soon be capped at $8—why you should aim to pay on time anyway
▼ + stars: | 2024-03-05 | by ( Cheyenne Devon | ) www.cnbc.com time to read: +2 min

The days of double digit late fees for late credit card payments may be coming to an end. On Tuesday, the Consumer Financial Protection Bureau finalized a rule that will cap credit card late fees at $8. For the past decade, consumers have faced increasing credit card late fees with the average cost of a late payment rising from $23 at the end 2010 to $32 in 2022, according to the CFPB. However, the agency says many larger credit card issuers hiked those late fees each year without proving why the increase was necessary. I don't think $8 is enough of a deterrent [against making late payments]," he tells CNBC Make It.

Persons: Rohit Chopra, Ted Rossman Organizations: Consumer Financial, Federal, CNBC, American Bankers Association

☆ New CFPB rule caps banks' credit card late fees at $8
▼ + stars: | 2024-03-05 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

The Consumer Financial Protection Bureau unveiled a new rule on Tuesday that it said would cap late fees that banks charge customers at $8 per incident. By cutting late fees to $8 from an average of around $32, more than 45 million card users would save an average of $220 annually, the CFPB said in a release. Regulations tied to that law granted issuers the ability to charge ever-increasing amounts of late fees. "For over a decade, credit card giants have been exploiting a loophole to harvest billions of dollars in junk fees from American consumers," CFPB Director Rohit Chopra said in the release. "Today's rule ends the era of big credit card companies hiding behind the excuse of inflation when they hike fees on borrowers and boost their own bottom lines."

Persons: Rohit Chopra Organizations: Banking, Housing, Urban Affairs Committee, Consumer Financial, Bureau

☆ Credit card late fees capped at $8 as part of Biden administration crackdown on junk fees
▼ + stars: | 2024-03-05 | by ( Matt Egan | ) edition.cnn.com time to read: +3 min

CNN —Federal regulators finalized a rule on Tuesday to cap most credit card late fees at $8 as part of a broader push by the Biden administration to eliminate junk fees. The new rule applies to large credit card issuers – those with more than 1 million accounts. These companies represent more than 95% of total outstanding credit card debt, according to the CFPB. It also comes as Americans continue to pile on credit card debt, which recently exceeded a record $1.1 trillion. Some borrowers, especially Millennials and those with lower incomes, have been falling behind on their credit card debt following more than two years of high inflation.

Persons: Biden, ”, Rohit Chopra, “, Greg Baer, Joe Biden, “ It’s, Chuck Bell Organizations: CNN, Consumer Financial, White, Bank Policy Institute, Council, Consumer

☆ 3 top Democratic lawmakers are calling for an investigation into a major student-loan company, accusing it of 'loan forgiveness mismanagement' for millions of borrowers
▼ + stars: | 2024-02-28 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Read previewThree top Democratic lawmakers want federal and state officials to investigate a major student-loan company. AdvertisementThey called on the CFPB and attorneys general to "investigate MOHELA and pursue action to the fullest extent possible under the law. We’re standing with @theSBPC and @AFTunion in expressing outrage at MOHELA’s student loan mismanagement. Since student-loan payments resumed in October after an over three-year pause, federal servicers have been under scrutiny over their handling of the return to repayment. AdvertisementIn January, the Education Department withheld varying amounts of pay from the other three federal servicers for the same reason.

Persons: —, Chuck Schumer, Elizabeth Warren, Bernie Sanders, MOHELA, they're, Biden, — Chuck Schumer, Warren Organizations: Service, Democratic, Consumer Financial Protection Bureau, Business, Protection, American Federation of Teachers, Sunshine Law, AGs, Education Department Locations: Sens, Missouri

☆ Credit card interest rates are at record highs. Cards have 'never been this expensive,’ CFPB says
▼ + stars: | 2024-02-23 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

The share of consumers with "subprime" credit scores who hold a credit card has been "relatively stable," they said. Major credit card issuers got $25 billion in extra interest by raising their average APR margin over the last 10 years, the CFPB estimated. "Higher APR margins have allowed credit card companies to generate returns that are significantly higher than other bank activities." They're among the nation's biggest credit card issuers. How to manage credit card interest

Persons: Martinez, Seikel, Lindsey Johnson, Greg McBride, McBride, That's Organizations: Bank, Getty, Consumer Bankers Association, CBA, Federal Reserve Bank of New, Financial, Discover Financial Locations: Federal Reserve Bank of New York

Payment apps have come under scrutiny by lawmakers and regulators as their usage skyrockets. That ease of use has 80% of Americans using mobile payment apps, according to a recent survey by NerdWallet. Transaction volume across all payment app service providers in 2022 was estimated at about $893 billion, according to the Consumer Financial Protection Bureau. Lawmakers are also calling on payment app companies to clarify their reimbursement policy if consumers get scammed and to make it easier for users to report fraud. In the meantime, experts say that consumers need to understand how these apps work, the fees that may be charged and the risks involved in storing money in a mobile payment app.

Persons: Amy Zirkle, Sen, Sherrod Brown Organizations: Consumer Financial, Finance, Democratic, Capitol, Banking Locations: Ohio

☆ Deutsche Bank's Mark Devries breaks down CFPB's new late fee rule
▼ + stars: | 2024-02-22 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailDeutsche Bank's Mark Devries breaks down CFPB's new late fee ruleMark Devries, Deutsche Bank research analyst, joins 'The Exchange' to discuss regulattion for credit card late fees and its impact to issuers.

Persons: Mark Devries Organizations: Deutsche, Deutsche Bank

☆ America is on the cusp of a new biggest credit card company. Here’s what it means for you
▼ + stars: | 2024-02-20 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +5 min

If approved by regulators and shareholders, Capital One’s (COF) acquisition will create the biggest US credit card company by loan volume. Discover cards are already accepted at 99% of all US merchants that allow customers to make credit card purchases, according to the company. Credit card networks are the liaison between card issuers and merchants, for whom they set fees. If Capital One flips all its credit cards to Discover, Mastercard would stand to lose a quarter of its US credit card volume. Compared to other major credit card issuers, Capital One has historically catered to customers with credit scores in the 600s range, which is considered subprime.

Persons: New York CNN —, Biden, Richard Fairbank, Fairbank, JPMorgan Chase, Andrew Harrer, Democratic Sen, Elizabeth Warren, Jaret, Cowen Organizations: New, New York CNN, Discover Financial Services, Capital, Discover, Mastercard, Visa, US, American Express, JPMorgan, Bank of America, Citigroup, Bloomberg, Getty, Consumer Financial, ”, Democratic Locations: New York, Mastercard’s, Visa’s

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