Stamford-headquartered Synchrony has received a compliance assistance sandbox approval from the federal Consumer Financial Protection Bureau to develop its proposed “dual-feature” credit card.
A compliance assistance sandbox allows companies to obtain a safe harbor for testing products and services for a limited time while sharing data with the bureau.
The card is designed to help consumers with a limited or damaged credit history to establish or reestablish a favorable credit history.
According to a press statement issued by the CFPB, Synchrony will offer a lower rate on secured use with the opportunity for eligible accountholders to graduate to unsecured use after 12 months. The terms of both secured use and unsecured use will be disclosed at the opening of the dual-feature credit card account, and the terms will then be redisclosed with the opportunity to opt-in to unsecured use.
Synchrony did not provide a timeline on when the new card would be introduced, although the duration of the bureau’s approval period in this case is three years.
