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WalMart sues Synchrony for $800m

Valued Contributor

Re: WalMart sues Synchrony for $800m

I think it has to do with how investors view the credit side of a business these days. I think I remember reading that Synchrony quoted that there is a 9% default rate on credit issued to Walmart cardholders.












Credit isn’t just a score, it’s a skill.
Message 11 of 22
Established Contributor

Re: WalMart sues Synchrony for $800m

Yeah, no. 

Walmart you cost yourself a lot of money when you started making me scan and bag my own purchases by opening 3x the self scan lines as the one or two lanes with breathing cashiers.

 

Now that I have to scan and bag my own stuff, I don't buy half as much crap as I did when you were doing it for me.  Sure, Aldi makes me bag my own stuff too, but their prices reflect my hard work. Keep shooting your self in the foot and blaming others for pulling the trigger.



Most recent Inquiry: AUG 25, 2018. Now back to the Garden.
Message 12 of 22
Valued Contributor

Re: WalMart sues Synchrony for $800m

Coming soon, Walmart will have us stock shelves as well. To enter the store, customers will be required to empty a shopping cart full of products in their designated areas before we can have a shopping cart to fill up with what we want.












Credit isn’t just a score, it’s a skill.
Message 13 of 22
Community Leader
Valued Contributor

Re: WalMart sues Synchrony for $800m

I've read this on other news sources but never could find the reasons Walmart thinks they're entitled to "at least" $800 million in damages from Synchrony. I searched again and found this on an AR newspaper:

 

"Copious redactions to the complaint, filed Thursday in U.S. District Court in the Western District of Arkansas, include the specific ways in which Walmart claims Synchrony breached the contract."

 

I see also that Walmart has requested a trial by jury, gonna be hard to find a jury in AR that will decide against Walmart. And I see in Synchrony's counter claims that they claimed Walmart didn't fulfill their obligations by promoting the card in store. The only reason I got a Walmart store card was I was in my local Walmart and the cashier pushed app'ing for the card to get a $25 credit by getting approved & charging $100 on it. I don't use it much as it only gives 1% cashback in store, I have 3 cards that get me 2%. I use more often on a small purchase to get up to $100 cash back interest free if PIF by the due date. 


Fico 08: 720/721/719 TU/EX/EQ
Message 14 of 22
Community Leader
Valued Contributor

Re: WalMart sues Synchrony for $800m


@2b2rich wrote:

Yeah, no. 

Walmart you cost yourself a lot of money when you started making me scan and bag my own purchases by opening 3x the self scan lines as the one or two lanes with breathing cashiers.

 

Now that I have to scan and bag my own stuff, I don't buy half as much crap as I did when you were doing it for me.  Sure, Aldi makes me bag my own stuff too, but their prices reflect my hard work. Keep shooting your self in the foot and blaming others for pulling the trigger.


Must be something specific to your location, like good customer acceptance of self scan. In my small city in southern Arizona there only 2 self service lines and 6-7 lines for cashiers, but there's a ton of retirees, both local and snowbirds, and self scan is too complicated for them. I'm no spring chicken myself and the one time I tried it as I only had a few items I managed to double scan and item and had to get live help to void it off.


Fico 08: 720/721/719 TU/EX/EQ
Message 15 of 22
Community Leader
Senior Contributor

Re: WalMart sues Synchrony for $800m

I think this lawsuit is about who keeps the existing portfolio.
By claiming that Syncrony's lending practice caused them losses, they are hoping to make them sell it for cheap.
On the other hand, Synch probably wants to sell, but not for the price Walmart is willing to pay.

Message 16 of 22
Frequent Contributor

Re: WalMart sues Synchrony for $800m

Got an email from Paypal today that it's teaming up with Walmart to load/withdraw Paypal Cash Card....now it makes sense after reading this thread...

 

Exclusively at Walmart
Load money or withdraw cash from your PayPal account at more than 4,700 Walmart stores.
cash in icon
Cash In
Use the PayPal Cash Mastercard to load cash1 to your PayPal account at any manned register in the front of Walmart stores nationwide.
cash out icon
Cash Out
Use the PayPal Cash 
Mastercard to get cash at 
over 3,000 Walmart ATMs2.
Aug 14 - TU548/EQ582/EX535
>Jun 17 TU719/EQ709/EX686
Total SL: 210K across the board
Message 17 of 22
Frequent Contributor

Re: WalMart sues Synchrony for $800m


@Remedios wrote:
I think this lawsuit is about who keeps the existing portfolio.
By claiming that Syncrony's lending practice caused them losses, they are hoping to make them sell it for cheap.
On the other hand, Synch probably wants to sell, but not for the price Walmart is willing to pay.


 

This is exactly it. Walmart is trying to bully Synchrony into accepting small potatoes; and it's working! (Sync stock down 10%)

 

It's comical how obvious the tactic is, due to Walmart's ridiculous, "implied promise," verbiage. That's nonsense of the first order, and probably why they want a largely biased local jury to oversee their kangaroo court.

 

Synchrony has every right to countersue for fair value, in addition to damages for Walmart using their weight to try to bully them into transfering the portfolio... apparently without any meaninful compensation.

 

Just goes to show that big companies are still oftentimes run by small people.

 

Now, I don't know all of the details, but that's my take on it... based on the current information available. I'm just glad that I didn't apply for that small-time Walmart retail card. It never made any sense to me, that they would issue such miniscule limits, on a card that customers would use so regularly.

 

Now, at least I can watch the torpedoing ensue - from afar.

 

Message 18 of 22
Established Contributor

Re: WalMart sues Synchrony for $800m


@DaveInAZ wrote:

@2b2rich wrote:

Yeah, no. 

Walmart you cost yourself a lot of money when you started making me scan and bag my own purchases by opening 3x the self scan lines as the one or two lanes with breathing cashiers.

 

Now that I have to scan and bag my own stuff, I don't buy half as much crap as I did when you were doing it for me.  Sure, Aldi makes me bag my own stuff too, but their prices reflect my hard work. Keep shooting your self in the foot and blaming others for pulling the trigger.


Must be something specific to your location, like good customer acceptance of self scan. In my small city in southern Arizona there only 2 self service lines and 6-7 lines for cashiers, but there's a ton of retirees, both local and snowbirds, and self scan is too complicated for them. I'm no spring chicken myself and the one time I tried it as I only had a few items I managed to double scan and item and had to get live help to void it off.


Not according to the local facebook page from people who shop there.  Walmart just doesn't care. They know that people will continue to go there whether it's favorable or not.  I order a lot from Amazon now days, but still a few things I need to get from a store.  I'm actually happy that I spend less.  The self scan lanes are complicated for a lot of people for a lot of reasons. Nothing I hate worse than waiting on an attendant to come over and correct a sale item that rang up full price, etc.



Most recent Inquiry: AUG 25, 2018. Now back to the Garden.
Message 19 of 22
Frequent Contributor

Re: WalMart sues Synchrony for $800m


@2b2rich wrote:

Not according to the local facebook page from people who shop there.  Walmart just doesn't care. They know that people will continue to go there whether it's favorable or not.  I order a lot from Amazon now days, but still a few things I need to get from a store.  I'm actually happy that I spend less.  The self scan lanes are complicated for a lot of people for a lot of reasons. Nothing I hate worse than waiting on an attendant to come over and correct a sale item that rang up full price, etc.


I agree. I think that, between the cost to add and maintain these constantly malfunctioning machines, and the theft generated from only having one agent overseeing multiple machines... I'd be surprised if all of this automation is actually working to create any additional efficiency, whatsoever.

 

It seems to me, that it's just a foil to the stockholders, to prove that the company is moving forward. But, it seems highly ineffective, in practice, at doing anything other than frustrating customers, and employees... and even wasting people's time, ending up being forced into troubleshooting the otherwise simple task of ringing up a few items - that a regular checker would more aptly handle with aplomb.

Message 20 of 22