Capital One Financial Corp. on Wednesday defended its credit card business amid critics' concerns that the bank is too focused on offering expensive plastic to the nation's riskiest borrowers.
Speaking at a Federal Reserve hearing on the bank's plan to buy ING Direct USA, Capital One General Counsel John Finneran said the bank does indeed provide credit cards to borrowers with less-than-perfect credit histories. But that's an offering that should be applauded, not denounced, he said.
"Responsible lending to these borrowers is not only acceptable, but also provides a source of credit and purchasing power for these customers, and is thus necessary to the functioning of our economy," he said at the hearing in San Francisco.
Critics remain skeptical of the McLean, Va., bank's recent pledges to create new jobs and boost community lending if the acquisition is completed. Last month, the bank announced a plan to invest $180 billion over 10 years to meet those concerns.
