Synchrony, along with other banks, raised interest rates and introduced new fees over the past year in response to a proposed Consumer Financial Protection Bureau (CFPB) rule. The rule aimed to cap credit card late fees at $8 per incident, down from an average of about $32.
Synchrony increased the annual percentage rates (APRs) on its portfolios by an average of 3 to 5 percentage points and added new monthly fees of $1.99 to $2.99 for paper statements. These actions were taken to mitigate the expected revenue impact if the CFPB rule were implemented.
A federal judge granted the industry's request to halt the rule's implementation in May, days before it was set to take effect. Synchrony's CFO stated in October that the company would proceed as though the rule were happening and was noncommittal about rolling back the rate and fee increases.
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