CFPB Gives Approval to Synchrony ‘Dual-Feature’ Credit Card

Synchrony Bank won CFPB approval for a “dual-feature” credit card designed for consumers with limited credit histories or damaged credit scores.

The Consumer Financial Protection Bureau on Wednesday issued an order shielding Synchrony’s proposed dual-feature credit card from disclosure requirements under the Truth in Lending Act.

Synchrony’s dual-feature credit card begins as a secured credit card that requires people with poor credit to pay a security deposit when the account is opened. After a year, a consumer would be able to move into a traditional, unsecured account.

Credit card customers would pay lower interest rates for the secured card than ...