FOR IMMEDIATE RELEASE: April 4, 2025
CONTACT:
Jimmy Wyderko jwyderko@economicliberties.us
Carter Dougherty, carter@ourfinancialsecurity.org
Alan Pyke, apyke@ncrc.org
Organizations Urge Justice, Banking Regulators to Block Capital One-Discover Merger
Anticompetitive impacts harm consumers, small businesses, and communities
WASHINGTON, DC — Today, American Economic Liberties Project, Americans for Financial Reform Education Fund, National Community Reinvestment Coalition, and Public Citizen sent a letter to the U.S. Department of Justice, the Federal Reserve Board, and the Office of the Comptroller of the Currency (OCC) urging them to block the proposed Capital One-Discover merger under federal antitrust and banking statutes.
The letter is available here.
The merger would create the sixth largest bank by assets and the largest credit card lender to people with non-prime credit scores, constituting more than 30 percent of the outstanding loans to these borrowers. Further, the merger would combine Capital One’s banking business with Discover’s credit and debit networks, creating vertical market power that would harm merchants and, in turn, consumers.
“”Capital One banks on the fact that many of their customers don’t have the ability to switch credit cards because of their credit score,”” said Jesse Van Tol, president and CEO of NCRC. “”Capital One takes advantage of that and charges some of the highest interest rates of the country, and if they acquire Discover they will have even less incentive to compete on the cost of their main product. This merger was a horrible idea for working class families when it was announced last year, and with rising prices it’s now an absolute nightmare.”