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Synchrony Financial
American financial services company

Synchrony Financial is an American consumer financial services company with its headquarters in Stamford, Connecticut, United States. The company offers consumer financing products, including credit, promotional financing and loyalty programs, installment lending to industries, and FDIC-insured consumer savings products, through Synchrony Bank, its wholly owned online bank subsidiary.

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History

Previously named GE Capital Retail Finance Corporation, Synchrony was incorporated in Delaware in 2003. The company was inactive until 2013.4567 Centered on co-branded credit products, Synchrony went public in July 2014 and raised $2.88 billion in its initial public offering.8

Recent corporate history

In 2017, Synchrony acquired GPShopper.910

In 2018, Synchrony acquired Loop Commerce, which provides a patented digital gifting platform called GiftNow.1112 In 2018, Synchrony's largest program was the acquisition of PayPal's $7.6 billion credit receivables portfolio.1314 Synchrony Bank also became the exclusive issuer for the PayPal Credit point-of-sale financing program in the United States through 2028. Additionally, PayPal agreed to extend its existing co-brand credit card relationship with Synchrony through the same 10-year term.15

In 2020, consumer advocacy groups urged the Consumer Financial Protection Bureau and Comptroller of the Currency to investigate the use of PayPal Credit to pay tuition at for-profit schools, where students are generally ineligible for lower-cost federal loans.16 The advocacy groups classified the 24% interest rates, $40 late fees, and aggressive collection practices as "predatory."17

Synchrony owns CareCredit, the largest provider of medical credit cards in the United States. In May 2024, a class action suit was filed in New York alleging that the card's interest rates of 32.99%% violate state usury laws. 18

GIC Private Limited, the sovereign wealth fund of Singapore, owned 7.72% of Synchrony's stock in 2019.19 However, GIC exited its position by 2023.20

Products and technology

Synchrony is the largest provider of private-label credit cards in the U.S.21 Brands partnered with Synchrony include Amazon,22 Lowe's,23 Guitar Center,24 Cathay Pacific, Rakuten, Verizon, Sleep Number, Walgreens, and Sam's Club.25

Synchrony has four "Innovation Stations," which are located in Stamford, Connecticut; Chicago, Illinois; Kettering, Ohio and Hyderabad, India.26

Public-private partnerships

In 2016, the University of Connecticut's School of Engineering announced the launch of Synchrony's Center of Excellence in Cybersecurity.27

In 2018, Synchrony opened an emerging tech center at the University of Illinois.28

In 2019, Synchrony opened the Synchrony Digital Technology Center at the University of Connecticut's Stamford campus.29 During the dedication of the center, the company announced a $1 million donation to the "Connecticut Commitment" – an initiative aimed at helping lower-income Connecticut students attend the university, tuition-free.30

Settlements

In June 2014, shortly before Synchrony's New York Stock Exchange debut, the U.S. Consumer Financial Protection Bureau and the Department of Justice reached a $225 million settlement with the company after it entered into a consent decree with the Consumer Financial Protection Bureau. The settlement stated that while operating as GE Capital Bank, the company had engaged in deceptive and discriminatory credit card practices, primarily surrounding nefarious enrollment practices for add-on programs such as financial hardship relief.3132

References

  1. "Document". www.sec.gov. https://www.sec.gov/Archives/edgar/data/1601712/000160171217000031/synchrony1231201610k.htm ↩

  2. "Synchrony 2024 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. February 7, 2025. Retrieved February 7, 2025. https://www.sec.gov/ix?doc=/Archives/edgar/data/1601712/000160171225000044/syf-20241231.htm ↩

  3. "Factsheet". Sychrony. Retrieved 16 April 2019. https://www.synchrony.com/financial-fact-sheet.html ↩

  4. "All SEC Filings". Synchrony Financial. Retrieved 2025-02-13. https://investors.synchrony.com/filings-regulatory/sec-filings/all-sec-filings?page=186##document-63-0001193125-14-096671-2 ↩

  5. Shah, Aman (13 March 2014). "GE files to spin off credit card unit". Reuters. Retrieved 17 June 2019. https://www.reuters.com/article/us-general-electric-ipo/ge-files-to-spin-off-credit-card-unit-idUSBREA2C0RZ20140313 ↩

  6. De La Merced, Michael (March 13, 2014). "G.E. Files to Spin Off Retail Finance Unit". New York Times. https://dealbook.nytimes.com/2014/03/13/g-e-files-to-spin-off-retail-finance-unit/ ↩

  7. "GE credit card unit Synchrony Financial prices IPO at $23 per share". Reuters. July 30, 2014. https://www.reuters.com/article/us-synchronyfinancial-ipo-idUSKBN0G000O20140731 ↩

  8. "GE credit card unit Synchrony Financial prices IPO at $23 per share". Reuters. July 30, 2014. https://www.reuters.com/article/us-synchronyfinancial-ipo-idUSKBN0G000O20140731 ↩

  9. "BRIEF-Synchrony Financial to buy GPShopper". Reuters. March 20, 2017. https://www.reuters.com/article/brief-synchrony-financial-to-buy-gpshopp-idUSASB0B65O ↩

  10. Rogers, Bruce. "Maya Mikhailov's Journey From Russia To Co-Founder Of GPShopper". Forbes. Retrieved 2020-03-23. https://www.forbes.com/sites/brucerogers/2019/01/08/maya-mikhailovs-journey-from-russia-to-co-founder-and-cmo-of-gpshopper/ ↩

  11. "Synchrony To Acquire Loop Commerce". PARTNERSHIPS / ACQUISITIONS. PYMNTS. 10 May 2018. Retrieved 17 June 2019. https://www.pymnts.com/news/partnerships-acquisitions/2018/synchrony-loop-commerce-gift-shopping/ ↩

  12. Zacks. "Synchrony Financial Braces Portfolio With Loop Commerce Buy". www.nasdaq.com. Retrieved 2020-03-23. https://www.nasdaq.com/articles/synchrony-financial-braces-portfolio-loop-commerce-buy-2018-06-11 ↩

  13. "SYNCHRONY 2018 Form 10K Annual Report". www.sec.gov. Retrieved 16 April 2019. https://www.sec.gov/Archives/edgar/data/1601712/000160171219000053/synchrony1231201810k.htm ↩

  14. PayPal (July 3, 2018). "PayPal and Synchrony Complete Consumer Credit Receivables Sale". PayPal. https://www.paypal.com/stories/us/paypal-and-synchrony-complete-consumer-credit-receivables-sale ↩

  15. Perez, Sarah (July 3, 2018). "PayPal sells its consumer credit portfolio to Synchrony for $7 billion". TechCrunch. /w/index.php?title=@sarahintampa&action=edit&redlink=1 ↩

  16. Carrns, Ann (2020-08-21). "Consumer Groups Take PayPal to Task Over Student Loan Credit Line". The New York Times. ISSN 0362-4331. Retrieved 2025-02-13. https://www.nytimes.com/2020/08/21/business/paypal-student-loans-synchrony.html ↩

  17. Douglas-Gabrielle, Danielle (August 21, 2020). "Consumer groups alarmed by PayPal's role in education finance want regulators to investigate". The Washington Post. Retrieved February 12, 2025. https://www.washingtonpost.com/education/2020/08/21/consumer-groups-alarmed-by-paypals-role-education-finance-want-regulators-investigate/ ↩

  18. Semuels, Alana (2025-01-14). "How Doctors Are Pushing Medical Credit Cards on Patients". TIME. Retrieved 2025-03-21. https://time.com/7206759/medical-credit-cards/ ↩

  19. "Synchrony proxy statement". sec.gov. Securities and Exchange Commission. https://www.sec.gov/Archives/edgar/data/1601712/000119312519099228/d718975ddef14a.htm#tx718975_24 ↩

  20. "SCHEDULE 14A - Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934" (PDF). investors.synchrony.com. https://investors.synchrony.com/filings-regulatory/sec-filings/all-sec-filings/content/0001193125-23-090318/0001193125-23-090318.pdf ↩

  21. "Synchrony Financial SEC Registration". sec.report. Retrieved 2020-04-24. https://sec.report/CIK/0001601712 ↩

  22. GuruFocus. "Warren Buffett And Seth Klarman Agree On One Stock – Synchrony Financial". Forbes. Retrieved 2020-04-24. https://www.forbes.com/sites/gurufocus/2018/07/10/the-one-stock-warren-buffett-and-seth-klarman-agree-on-and-are-buying/ ↩

  23. Johnson, Andrew (March 13, 2014). "GE Plans Credit-Card IPO as Plastic Gets Popular; New Company to Be Called Synchrony Financial". The Wall Street Journal. Dow Jones & Company Inc. Retrieved June 3, 2015. https://www.wsj.com/articles/SB10001424052702303546204579436793107211978 ↩

  24. 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. http://www.thestreet.com/story/13116855/1/ge-spinoff-synchrony-financial-is-still-trying-to-stand-on-its-own.html ↩

  25. "Synchrony Credit Cards: Prequalify or Apply Online". www.synchrony.com. https://www.synchrony.com/financing/credit-cards ↩

  26. "synchrony-financial-to-invest-12-m-in-hyderabad-facility". The Hindu. 29 April 2016. http://www.thehindu.com/news/cities/Hyderabad/synchrony-financial-to-invest-12-m-in-hyderabad-facility/article8534972.ece ↩

  27. Mahoney, Sara (12 Oct 2016). "UConn Establishes Synchrony Financial Center of Excellence in Cybersecurity". UConn Today. Retrieved 20 May 2019. https://today.uconn.edu/2016/10/uconn-establishes-synchrony-financial-center-excellence-cybersecurity/ ↩

  28. Bliell, Laura (12 April 2018). "Synchrony Opens Emerging Tech Center at the University of Illinois to Develop Artificial Intelligence Solutions". Synchrony Financial. Retrieved 20 May 2019. https://www.synchrony.com/synchrony-opens-emerging-tech-center-at-the-university.html ↩

  29. "Synchrony Digital Technology Center Dedicated; Gift to Connecticut Commitment Announced". UConn Today. 2019-12-16. Retrieved 2020-05-19. https://today.uconn.edu/2019/12/synchrony-digital-technology-center-dedicated-gift-connecticut-commitment-announced/ ↩

  30. "Synchrony Digital Technology Center Dedicated; Gift to Connecticut Commitment Announced". UConn Today. 2019-12-16. Retrieved 2020-05-19. https://today.uconn.edu/2019/12/synchrony-digital-technology-center-dedicated-gift-connecticut-commitment-announced/ ↩

  31. "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. https://www.consumerfinance.gov/about-us/newsroom/cfpb-orders-ge-capital-to-pay-225-million-in-consumer-relief-for-deceptive-and-discriminatory-credit-card-practices/ ↩

  32. Schneier, Cogan (14 June 2019). "GE Capital arm to pay record credit card settlement". USA Today. https://www.usatoday.com/story/money/business/2014/06/19/ge-capital-bank-synchrony-credit-card-discrimination/10886795/ ↩