Capital One announces ~1100+ more layoffs at Discover.

[AndrewF]

https://www.bankingdive.com/news/capital-one-discover-job-cuts-layoffs/813908/

Capital One has announced another 1100+ layoffs at Discover at the Discover HQ on Lake Cook Road in Illinois. This is on top of last year's round that cut over 500.

More than half the employees that had jobs there will now be gone.

This must be Richard Fairbank's "Community Benefits Agreement" in effect that he swore up and down to the government on.

I suppose over 1,600 people just in Illinois who are out of a job and can't provide for their family because of a bank merger "benefits communities".

They claim that no "customer facing" roles have been eliminated, but most of Discover is now gone other than the credit card and personal loans departments. Capital One has been moving people over to the Capital One app, and I've heard more than a few say their interest rate on the Discover cards went up another 5-6 percentage points.

"Community Benefits Agreement"

[FicoMike0]

Thats 1100 fewer to charge off accounts.

[AndrewF]

"The enemy cannot push a button if you disable his hand!"

(Starship Troopers)

[TrapLine]

@AndrewF 

Going back to the year 2008 when the United States was seeing many financials consolidate, Capital One was on it and merged a few into their holdings. This action has come up a time or two around the Forum.

Speaking as an affected party, Cap1 acquired my card accounts from several providers and increased the Apr on all the accounts to the going Cap1 rates at the time. Two of my accounts from HSBC had 7.9% fixed rates and were increased to 23.9% ariable Apr.

What I did in response to the actions, I closed six personal and two business accounts that existed with Cap1 after the mergers. Since then, I have never looked back. My Discover Card has a below market rate and if/when Cap1 does increase the rate (anticipate they will), I have the card scheduled to close.

Now, Cap1 is not the only one doing this. JP Morgan Chase has done the same thing to MyFicoers that had their below market credit card rates on some accounts. Some saw increased rates to Chase's current market rates. Again, I was one of them. Since I no longer utilize the Chase card account I just closed it.

While this is not a pleasant experience ... we on this Forum know there are other fish in the sea.