Synchrony Financial

History

The history of Synchrony dates back to 1932 ¹ .

Prior to its $ 2.88 billion initial public offering, Synchrony operated a subsidiary of GE Capital ^2 , 3 .

In March 2017, Synchrony acquired GP Shopper ^4 , 5 .

Current Operations

Synchrony is the largest private label credit card provider in the United States. In 2014, the company comprised 42% of the private label credit card market ⁶ . The Company provides credit cards for brands such as Amazon , Cathay Pacific , CheapOair , OneTravel , Walmart , Lowe’s , Guitar Center , Gap , BP , Ashley HomeStores , Discount Tire and PC Richard & Son. The CareCredit credit card, also through Synchrony Bank, covers health services, such as dental, veterinary, cosmetic, vision and audiology ⁷ .

Charges of deceptive practices and cessation of consent CFPB

In June 2014, Synchrony agreed to pay $ 225 million after entering into an agreement with the US Consumer Protection Bureau (CFPB). The CFPB alleged “deceptive and discriminatory practices” with regard to Synchrony ⁸consumer credit cards .

The practices that the CFPB claims to be misleading are those concerning, while operating as GE Capital, the Synchrony telemarketers who had sold many additional credit card services, such as debt cancellation agreements, to consumers without notify the buyer. According to the CFPB, in many cases, consumers were unaware that they would be billed for these services.

Regarding the practices, which the CFPB characterized as “discriminatory”, it was found that Synchrony had discriminated against Latin Americans by excluding from two different promotions customers who had chosen to receive communications. in Spanish and customers with postal addresses in Puerto Rico. The promotional offers were offered from 2009 to 2012 to customers with overdue accounts and allowed them to pay their balance with Synchrony Financial by paying less than the outstanding balance, under certain conditions. It is not known why Synchrony chose not to offer this promotion to its Spanish-speaking clients, but the CFPB found that this practice constituted “discrimination on the basis of race and nationality”.

References