Synchrony Lowers Earnings Forecast on Credit Card Late Fee Rule

Synchrony Financial lowered its annual earnings forecast following a rule slashing most credit card late fees, which the White House said today is being finalized.

Synchrony anticipates that the firm’s annual diluted earnings per share will fall by $0.15 to $0.25, based on the assumption that fourth-quarter late fees decline by $800 million, it said Tuesday in a filing. The company forecasts other expenses coming in slightly higher in the first, second and third quarters as it executes the requisite changes in cardholder terms.

Read more: Biden to Finalize Rule to Cap Credit Card Late Fees at $8

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