Synchrony Extends to Continue Servicing Sam's Club Credit Cards
23 January 2019 - 11:31PM
Dow Jones News
By Kimberly Chin
Synchrony Financial (SYF) has reached an agreement with Sam's
Club parent Walmart Inc. (WMT) to continue managing and servicing
the Sam's Club-branded credit card program.
The agreement also calls for Synchrony to sell a Walmart loan
portfolio that it currently services. The transfer of the portfolio
is expected to be completed in the third to early fourth quarter of
this year.
As part of the agreement, Walmart has also dropped its lawsuit
with Synchrony. Walmart has accused the bank of breaching credit
card agreements issued to Walmart customers.
"We are very pleased to have reached these agreements. Obtaining
certainty around the Walmart portfolio and a renewal on Sam's Club
is a great outcome for the company," Synchrony President and Chief
Executive Officer Margaret Keane said in prepared remarks.
Synchrony began servicing Sam's Club's credit programs in 1993.
It currently provides customers of Sam's Club's nearly 600 store
locations with co-branded and private-label credit cards for Club
and Plus members.
Write to Kimberly Chin at kimberly.chin@wsj.com
(END) Dow Jones Newswires
January 23, 2019 07:16 ET (12:16 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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