NEW YORK—The nation’s 14 largest credit card issuers slashed $99 billion from their customers’ spending limits in 2020, mostly affecting financially troubled households, according to a new report.
Capital One led the way by paring $30 billion from limits by the end of 2020. Citigroup and JPMorgan Chase each saw their totals fall by $19 billion, Bloomberg reported.
“Numbers aren’t typically disclosed in corporate earnings reports, with annual figures appearing only recently in arcane filings with the Federal Reserve,” Bloomberg said.
Bloomberg’s analysis suggested the reductions threaten to exacerbate the economic divide between U.S. households.
“Financially healthy Americans kept their credit and are now so flush with cash — stockpiling an estimated $1.7 trillion in excess savings since outbreaks began — that some analysts expect “revenge spending” to power record consumer purchases. That would stoke economic growth,” Bloomberg said.