Banks Increase Card Interest Rates

This is a news story, published by CNBC, that relates primarily to Synchrony news.

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card industry

CNBC

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Banks hit credit card users with higher rates in response to regulation that may never arrive

Summary

Nutrition label

89% Informative

Banks that issue credit cards used by millions of consumers raised interest rates and introduced new fees.

Synchrony and Bread Financial have said that the moves were necessary after the Consumer Financial Protection Bureau announced a rule slashing what the industry can charge in late fees.

Other banks, including Barclays and Citigroup , also boosted the interest rates on their store cards.

The effect is that proposed regulation intended to save consumers money has instead resulted in higher costs.

The bank is in the process of acquiring rival card issuer Discover Financial .

When asked if they would reverse the higher APRs and fees if the CFPB rule went away, Synchrony managers were noncommittal.

The bank has to proceed as though it were happening, CFO Brian Wenzel told analysts in October .

VR Score

Informative language

Neutral language

Article tone

semi-formal

Language

English