Texas Representative Al Green (D) called for the close examination of the merger of two credit card giants, Discover Finacial Services and Capital One Financial.
“Congressman Al Green Urges Regulators to Closely Examine the Merger of Credit Card Giants to Determine if it is in the Best Interests of Consumers and Workers,” tweeted Rep. Green.
PRESS RELEASE: Congressman Al Green Urges Regulators to Closely Examine the Merger of Credit Card Giants to Determine if it is in the Best Interests of Consumers and Workers pic.twitter.com/YpDdaAo3vr
— Congressman Al Green (@RepAlGreen) February 20, 2024
“The acquisition of Discover Financial Services by Capital One Financial, pending federal regulators’ approval, raises many concerns about competition and consumer welfare,” said Green.
The two merging companies are large in scale and brought in billions of dollars per year.
“Capital One is among the largest banks in the nation, reporting $36.8 billion in total net revenue for 2023. Discover operates one of the largest payment networks in the country, reporting $2.9 billion in net income for 2023,” said the Texas lawmaker.
Green expressed his trepidation surrounding the merger and how it could hurt those who use the company, as well as those who work for the company.
“I am concerned that this consolidation may harm both consumers and the employees of these firms. A recent Consumer Financial Protection Bureau Report analyzing credit card terms from issuers of all sizes found that the largest 25 credit card companies tended to offer higher interest rates than small banks and credit unions,” said Green.
The Texas representative highlighted the high interest rates charged by Capital One and stood against the company and their practices.
“Capital One was also among the institutions found to offer cards with a maximum purchase Annual Percentage Rate (APR) exceeding 30%. I oppose any bank consolidation that would force consumers to be saddled with interest rates and fees that exceed what they would be able to obtain from a less concentrated marketplace,” said Green.
Green pointed to the potential for the company to impact workers in the industry and called for a smooth merger.
“Furthermore, at a time when technology, including artificial intelligence, threatens workers in many industries, I am concerned that this acquisition will lead to layoffs at Discover and Capital One. These firms must exercise care to ensure that this merger is completed as seamlessly as possible,” said Green.
“For these reasons, I urge regulators to closely examine this proposed acquisition to determine if it is in the best interests of consumers and workers,” concluded Green.
Green recently joined Texas Representative Sylvia Garcia (D) and met with the Inspector General for the USPS to discuss mail delivery delays in Houston.
Green pointed to the need for a level of transparency from the USPS while emphasizing his plans to continue fighting to fix the issue.
“While efforts are being made to deal with the unreasonable mail delay problems, we’ll await the USPS’ comprehensive report on the North and South Houston facilities. This should provide some transparency as well as recommendations to facilitate improved delivery service. Congresswoman Garcia and I still intend to tour the plants before the March elections. We also believe that an on-site customer service agent should be stationed at the Missouri City plant to provide customer assistance with mail delay issues,” stated Green.
