Synchrony Financial

Synchrony Financial is a major issuer of private-label and co-branded retail credit cards, partnering with merchants to offer store-branded financing. A significant portion of its business involves extending credit to subprime borrowers through these retail channels, often at high interest rates. The company has faced repeated regulatory scrutiny and legal action over its lending practices.

The Consumer Financial Protection Bureau (CFPB) has investigated Synchrony subsidiaries for deceptive marketing of medical credit cards and other promotional financing. Court documents from multiple settled class-action lawsuits reference Synchrony's use of mandatory arbitration provisions in customer agreements, a practice often criticized for shielding companies from accountability. Consumer complaints frequently allege predatory tactics, including intentionally delayed payment processing to trigger late fees and targeting vulnerable populations with high-cost credit products at the point of sale, such as in medical offices.

While Synchrony operates in a regulated industry, its core business model relies on generating revenue from interest and fees on credit extended to consumers who may have limited alternatives, a characteristic of predatory lending. The pattern of regulatory investigations and consumer legal actions indicates systemic issues with the terms and marketing of its credit products.