BANKING & FINANCE - Nov. 6, 1992
From Times Staff and Wire Reports
Sears Wins Ruling in Credit Card Suit: Credit card giant Visa harmed free competition in the credit card market by refusing to allow a Sears Roebuck & Co.-owned thrift to issue Visa cards, a federal jury in Salt Lake City decided. The verdict followed a three-week trial on a 1991 lawsuit by Sears, which challenged Visa’s refusal to let Sears-owned MountainWest Financial issue a new, no-annual-fee Visa card called Prime Option. Visa attorneys said they will try to have the verdict overturned and, failing that, will appeal. Sears, creator of the upstart Discover card, contended that consumers would benefit if was allowed to issue Visa cards. That would increase competition, thus lowering card rates and annual fees, Sears argued.
