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ABA: The American Bankers Association
Compliance News

CFPB Issues Compliance Sandboxes for Dual Usage Credit Cards, Wage Access

The Consumer Financial Protection Bureau on Dec. 30 issued two compliance assistance sandboxes: one for dual usage credit cards and another for employee access to earned but unpaid wages. CFPB compliance sandboxes provide a safe harbor for banks to test products or services that have been approved by the bureau.

Synchrony Bank was issued a compliance assistance sandbox for its dual-feature credit card designed for consumers with damaged credit history as a tool to reestablish a favorable credit history. Stamford, Connecticut-based Synchrony, a major card-issuing bank, intends to offer a lower rate on secured use with the opportunity for eligible accountholders to graduate to unsecured use after a year, according to the CFPB.

PayActive received a compliance sandbox for its program that facilitates employee-requested transfers of wages that an employee has already earned, capped at no more than 60% of the accrued cash value of the earned wages.