Synchrony Financial: Difference between revisions
→History: Add information on GE Capital connection |
No edit summary Tag: references removed |
||
| Line 31: | Line 31: | ||
==Current operations== |
==Current operations== |
||
Synchrony is the largest provider of [[private label credit card]]s in the U.S. In 2014, the company comprised 42 percent of the private label credit card market.<ref>{{cite news | last = Picker | first = Leslie | title = GE Overhang Looms for Synchrony Before Planned IPO | publisher = Bloomberg | date = July 31, 2014 | url = https://www.bloomberg.com/news/articles/2014-07-30/ge-overhang-looms-for-synchrony-before-planned-ipo | accessdate = June 3, 2015}}</ref> The company provides private label credit cards for such brands as [[Amazon.com|Amazon]], [[Cathay Pacific]], CheapOAir, OneTravel,<ref>{{cite news | last = Kapadia | first = Milanee | title = Credit card issuer says the "consumer is back" | website = Yahoo Finance | publisher = Yahoo | date = November 24, 2014 | url = https://finance.yahoo.com/news/credit-card-issuer--the-american-consumer-is-back-143029068.html;_ylt=AwrBEiGsj3NUWwsAL0fQtDMD |
Synchrony is the largest provider of [[private label credit card]]s in the U.S. In 2014, the company comprised 42 percent of the private label credit card market.<ref>{{cite news | last = Picker | first = Leslie | title = GE Overhang Looms for Synchrony Before Planned IPO | publisher = Bloomberg | date = July 31, 2014 | url = https://www.bloomberg.com/news/articles/2014-07-30/ge-overhang-looms-for-synchrony-before-planned-ipo | accessdate = June 3, 2015}}</ref> The company provides private label credit cards for such brands as [[Amazon.com|Amazon]], [[Cathay Pacific]], CheapOAir, OneTravel,<ref>{{cite news | last = Kapadia | first = Milanee | title = Credit card issuer says the "consumer is back" | website = Yahoo Finance | publisher = Yahoo | date = November 24, 2014 | url = https://finance.yahoo.com/news/credit-card-issuer--the-american-consumer-is-back-143029068.html;_ylt=AwrBEiGsj3NUWwsAL0fQtDMD | accessdate = June 3, 2015}}</ref> [[Lowe’s]],<ref name="Johnson"/> [[Guitar Center]],<ref>{{cite news | last = Passeri | first = James | title = GE Spinoff Synchrony Financial Is Still Trying to Stand on Its Own | newspaper = The Street | publisher = TheStreet, Inc. | date = April 17, 2015 | url = http://www.thestreet.com/story/13116855/1/ge-spinoff-synchrony-financial-is-still-trying-to-stand-on-its-own.html | accessdate = June 3, 2015}}</ref> [[Gap Inc.|Gap]],<ref>{{cite news | last = Nash | first = Kim | title = GE Spin-Off Synchrony Financial Builds Tech to Support Growth Plans | newspaper = The Wall Street Journal | publisher = NewsCorp | date = May 14, 2015 | url = https://blogs.wsj.com/cio/2015/05/14/ge-spin-off-synchrony-financial-builds-tech-to-support-growth-plans/ | accessdate = June 3, 2015}}</ref> [[BP]],<ref>{{cite news | last = Tierney | first = Jim | title = BP Upgrades Loyalty Program for Greater Value Proposition | website = Loyalty 360 | publisher = Loyalty 360 | date = March 3, 2015 | url = http://loyalty360.org/resources/article/bp-upgrades-loyalty-program | accessdate = June 8, 2015}}</ref> [[Ashley Furniture HomeStores|Ashley HomeStores]],<ref name="retail">{{cite news | last = Walston | first = Chuck | title = GE: How The Upcoming Spin-Off Will Prove Profitable | website = Seeking Alpha | publisher = Seeking Alpha | date = March 31, 2014 | url = http://seekingalpha.com/article/2117973-ge-how-the-upcoming-spin-off-will-prove-profitable?page=2 | accessdate = August 19, 2015}}</ref> [[Discount Tire]],<ref name="retail"/> [[J.C. Penney]], and [[P. C. Richard & Son]].<ref name="retail"/> The CareCredit credit card, also offered through Synchrony Bank, is for healthcare procedures or services such as dental, veterinary, cosmetic, vision, and audiology.<ref>{{cite news|title = Samsung Finally ‘Unpacks’ Samsung Pay | url = http://www.pymnts.com/news/2015/samsung-finally-unpacks-samsung-pay-2/#.VdSfirJVikp | accessdate = 19 August 2015 | publisher = PYMNTS | date = 14 August 2015}}</ref> |
||
==Accusations of deceptive practices and CFPB consent decree== |
==Accusations of deceptive practices and CFPB consent decree== |
||
Revision as of 16:00, 11 January 2019
 | This article contains content that is written like an advertisement. (December 2015) |
 | |
| Company type | Public company |
|---|---|
| NYSE: SYF S&P 500 Component | |
| Industry | Financial services |
| Founded | September 12, 2003[1] |
| Headquarters | |
Key people | Margaret M. Keane[3] President and CEO |
| Products | Credit cards Payment systems |
| Revenue |  US$13.530 billion (2016)[2] |
| US$2.251 billion (2016)[2] | |
| Total assets | US$90.207 billion (2016)[2] |
| Total equity | US$14.196 billion (2016)[2] |
Number of employees | 15,000 (2016)[2][4][5] |
| Website | synchronyfinancial.com |
Synchrony Financial is a consumer financial services company headquartered in Stamford, Connecticut, United States.[2] The company offers consumer financing products, including credit, promotional financing and loyalty programs, installment lending, and FDIC insured savings products through Synchrony Bank, its wholly owned subsidiary.[2]
History
Synchrony traces its roots to 1932.[4]
Prior to its 2014 initial public offering, which raised $2.88 billion, Synchrony operated as a subsidiary of GE Capital.[4][6][7] Synchrony Bank, a wholly owned subsidiary of Synchrony Financial, was previously known as GE Capital Retail Bank until June 2014.[8]
In March 2017, Synchrony acquired GP Shopper.[9][10]
Current operations
Synchrony is the largest provider of private label credit cards in the U.S. In 2014, the company comprised 42 percent of the private label credit card market.[11] The company provides private label credit cards for such brands as Amazon, Cathay Pacific, CheapOAir, OneTravel,[12] Lowe’s,[13] Guitar Center,[14] Gap,[15] BP,[16] Ashley HomeStores,[17] Discount Tire,[17] J.C. Penney, and P. C. Richard & Son.[17] The CareCredit credit card, also offered through Synchrony Bank, is for healthcare procedures or services such as dental, veterinary, cosmetic, vision, and audiology.[18]
Accusations of deceptive practices and CFPB consent decree
In June 2014, Synchrony agreed to pay $225 million after entering into a consent decree with the U.S. Consumer Financial Protection Bureau. The CFPB alleged "deceptive and discriminatory practices" regarding Synchrony's consumer credit cards.[19]
With regards to the practices that the CFPB called "deceptive," it was alleged that, while operating as GE Capital, Synchrony telemarketers had sold numerous credit card add-on services, such as debt cancellation agreements, to consumers without notifying the buyer in an upfront manner of the terms of the agreements. According to the CFPB, in many cases, consumers were unaware that they would be charged for these services.
With regards to the practices the CFPB called "discriminatory," it was found that Synchrony had discriminated against Latino Americans by excluding from two different promotional statement credit deals customers who had elected to receive communications in Spanish and customers with mailing addresses in Puerto Rico. The promotional deals were offered from 2009 until 2012 to customers with delinquent accounts and allowed them to settle their balance with Synchrony Financial by paying some amount which was less than the outstanding balance, under certain conditions. It is not known why Synchrony chose not to offer this promotion to its Hispanic customers, but the CFPB found that this practice constituted "discriminat[ion]... on the basis of... race and national origin."
References
- ^ "Synchrony Financial on the Forbes Global 2000 List". Forbes. Retrieved 2016-10-04.
- ^ a b c d e f g h SYNCHRONY FINANCIAL 2016 Form 10-K Annual Report
- ^ Schawbel, Dan (May 10, 2015). "Margaret Keane: How Synchrony Financial Built A Winning Culture". Forbes. Retrieved June 3, 2015.
- ^ a b c Synchrony Financial Fact Sheet
- ^ "Synchrony Financial Careers - We're Hiring". Synchrony Financial.
- ^ De La Merced, Michael (March 13, 2014). "G.E. Files to Spin Off Retail Finance Unit". New York Times.
- ^ "GE credit card unit Synchrony Financial prices IPO at $23 per share". Reuters. July 30, 2014.
- ^ Andriotis, AnnaMaria. "The Best Places to Stash Your Cash". WSJ. Retrieved 2018-11-22.
- ^ "BRIEF-Synchrony Financial to buy GPShopper". Reuters. March 20, 2017.
- ^ "Synchrony Financial to Broaden Cutting Edge Mobile Commerce Solutions for Retailers Through its Acquisition of GPShoppe" (Press release). Business Wire. March 20, 2017.
- ^ Picker, Leslie (July 31, 2014). "GE Overhang Looms for Synchrony Before Planned IPO". Bloomberg. Retrieved June 3, 2015.
- ^ Kapadia, Milanee (November 24, 2014). "Credit card issuer says the "consumer is back"". Yahoo Finance. Yahoo. Retrieved June 3, 2015.
- ^ Cite error: The named reference
Johnsonwas invoked but never defined (see the help page). - ^ Passeri, James (April 17, 2015). "GE Spinoff Synchrony Financial Is Still Trying to Stand on Its Own". The Street. TheStreet, Inc. Retrieved June 3, 2015.
- ^ Nash, Kim (May 14, 2015). "GE Spin-Off Synchrony Financial Builds Tech to Support Growth Plans". The Wall Street Journal. NewsCorp. Retrieved June 3, 2015.
- ^ Tierney, Jim (March 3, 2015). "BP Upgrades Loyalty Program for Greater Value Proposition". Loyalty 360. Loyalty 360. Retrieved June 8, 2015.
- ^ a b c Walston, Chuck (March 31, 2014). "GE: How The Upcoming Spin-Off Will Prove Profitable". Seeking Alpha. Seeking Alpha. Retrieved August 19, 2015.
- ^ "Samsung Finally 'Unpacks' Samsung Pay". PYMNTS. 14 August 2015. Retrieved 19 August 2015.
- ^ "CFPB Orders GE Capital to Pay $225 Million in Consumer Relief for Deceptive and Discriminatory Credit Card Practices" (Press release). Consumer Financial Protection Bureau. June 19, 2014.
External links
- Website
- Business data for Synchrony Financial: