Consumers who have credit card debt on their Kohl’s department store account will soon be paying their bills to a different lender.
Earlier this week, Kohl’s announced it had completed a previously announced transfer of its entire credit card portfolio to a new major lender, according to a report from The Associated Press. For at least the next seven years, the company dealing with all the balances on Kohl’s store-branded credit cards will be Capital One Financial, rather than JPMorgan Chase.
The retail giant, which originally announced the pending switch in August, pledged that any changes that come to their accounts as a result of the transfer will be “largely transparent,” the report said. Currently, the company has more than 20 million accounts with outstanding balances, and these generated about 50 percent of its total revenue in 2010.
Consumers using store-branded credit cards, rather than traditional accounts, typically pay higher interest rates on their outstanding balances on them. This is usually why it’s easier for consumers with spotty borrowing histories to be approved for these accounts.