David Jones has inked a new deal with Latitude Financial that will see the latter provide the retail giant with credit cards for a ten-year stretch.
Latitude will issue two new credit cards to qualifying customers from September, and will acquire David Jones’ existing cards portfolio, previously held by American Express.
American Express has been the department store’s financial services and credit card partner since 2008.
This new deal comes just weeks after the beleaguered retail giant was sold to private equity firm Anchorage Capital Partners for $100 million.
“We have partnered with Latitude because we have a common vision to deliver a best-in-class, digital first card offering to our customers,” explained David Jones chief executive Scott Fyfe.
Latitude is currently embroiled in a court battle with ASIC over similar credit cards offered through Harvey Norman.
The Australian Securities and Investments Commission alleged that advertising ran from January 2020 to August 2021 was misleading because it promised no deposit, interest free payment terms, without disclosing these terms were only available through a Latitude GO Mastercard, and misrepresented the true cost of using the card.
“ASIC is concerned the advertising did not provide consumers with the full picture, that they could only use the interest free payment method by applying for and using certain Latitude credit cards.,” ASIC deputy chairwoman Sarah Court said in October, when filing these charges.
“These credit cards, ASIC alleges, attracted substantial fees over the course of the 60-month payment term, and exposed consumers to the risks of incurring further debts and charges, as well as potentially affecting their credit rating.”
