Synchrony Financial is a consumer financial services company headquartered in Stamford, Connecticut, United States. The Company offers consumer financing products, including credit, promotional financing and loyalty programs, installment loans, and FDIC insuring savings products through Synchrony Bank, a wholly owned subsidiary.
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History
Synchrony traces its roots until 1932.
Before the 2014 Initial Public Offering, which generated $ 2.88 billion, Synchrony operated as a subsidiary of GE Capital.
In March 2017, Synchrony acquired GP Shopper.
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Current operation
Sync is the largest provider of privately-labeled credit cards in the U.S. By 2014, the company accounts for 42 percent of the private label credit card market. The company provides private labeled credit cards for brands like Amazon, Cathay Pacific, CheapOAir, OneTravel, Walmart, Lowe, Guitar Center, Gap, BP, Ashley HomeStores, Discount Tire, J.C. Penney, and P. C. Richard & amp; Son. CareCredit credit cards, which are also offered through Synchrony Bank, are for health care procedures or services such as dental, veterinary, cosmetic, vision, and audiology.
Accusations of fraudulent practices and approval of CFPB approval
In June 2014, Synchrony agreed to pay $ 225 million after approving a consent decision with the U.S. Consumer Financial Protection Bureau. The CFPB accused "fraudulent and discriminatory practices" about Synchrony's consumer credit cards.
In connection with the practices which CFPB calls "cheat", it is alleged that, when operating as GE Capital, Synchrony telemarketers have sold many credit card additional services, such as debt cancellation agreements, to consumers without informing buyers in the original manner of the terms of the agreement. According to the CFPB, in many cases, consumers do not realize that they will be charged for this service.
In connection with the so-called "discriminatory" CFPB practice, it was found that Synchrony had discriminated against Latin Americans by excluding from two different promotional offer credit offer customers who had chosen to receive Spanish and customer communications with a mailing address in Puerto Rico. Promotional offers are offered from 2009 to 2012 to customers with delinquent accounts and allow them to settle their balance with Synchrony Financial by paying an amount less than the outstanding balance, under certain conditions. It is unknown why Synchrony chose not to offer this promotion to Hispanic customers, but the CFPB found that this practice was "discriminat [ion]... on the basis of... race and national origin."
It was recently revealed that Synchrony and its associated Synchrony Car Care services have closed the customer's credit card account without notice to the customer. When customers finally find out the card is closed and contact Synchrony, they are often told that the credit card is closed due to inactivity even when the account is in good condition. To make matters worse, when a customer asks how they can reopen the account, they are told it is impossible and they need to apply for a new account that forces customers to experience a hard hit on their credit report. It is questionable if Synchrony violates state and federal laws when closing accounts without notice to customers, as this may adversely impact customer credit scores and then force them to pay higher interest rates.
References
External links
- Website
Source of the article : Wikipedia
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