Consumer complaint received 2023-12-30
Company: SYNCHRONY FINANCIAL
State: AZ
Product: Credit card
Sub-product: General-purpose credit card or charge card
Issue: Trouble using your card
Sub-issue: Credit card company won't increase or decrease your credit limit

Complaint:
I submitted an application for a PayPal Credit Account, underwritten by Synchrony Bank, on XX/XX/, which was subsequently approved with a credit limit of {$7700.00}. 

However, on XX/XX/, I received an email containing a letter that informed me of a reduction in my credit limit. This decrease was attributed to an unwarranted creditworthiness prediction conducted by Synchrony Bank 's credit scoring system, where I did not " score well '' with certain " credit characteristics. '' The specified reasons for this reduction were outlined as follows : 1 ) Delinquent or Derogatory Real Estate Secured Loan 2 ) Delinquent or Derogatory Accounts 3 ) Insufficient Balance Paid Down Over Time on Installment Accounts 4 ) Unpaid Collections After receiving the letter and between XX/XX/, and XX/XX/, I filed a dispute with Synchrony Bank through PayPal Credit Customer Service. In my dispute, I highlighted the reasons mentioned ( Line Items 1-4 ) and argued that the " delinquent trade lines '' on my credit bureau ( s ) had already been considered and accepted during my initial application and the inception of the PayPal Credit Account and should have no impact. 

In response to my dispute, I received a letter from Synchrony Bank ( dated XX/XX/XXXX  ; attached ) treating my initial dispute as a request for a credit line increase with a request to submit proof of all net income within thirty ( 30 ) days in order for the request to be processed, which is not correct. 

I again vehemently dispute Synchrony Bank 's decision and the reasons stated above for my credit limit to be decreased as the " delinquent trade lines, such as the delinquent or derogatory accounts, and unpaid collections, as appearing on my credit bureaus were already considered and accepted at the time of my account application was submitted and the inception of the PayPal Credit Account and should have no impact. 

Inasmuch, contrary to the assertion of a " delinquent or derogatory real estate secured loan, '' I encountered a one-time, 30-day reporting discrepancy by my mortgage servicer, which occurred at minimum three ( 3 ) years ago and should have no impact. Plus, the mortgage loan has remained current since. 

The statement regarding " insufficient balance paid down over time on installment accounts '' is misleading. I successfully paid off all " no interest for 6 months '' accounts within the specified timeframe, with no interest assessed. Therefore, the claim is erroneous, especially considering the account is less than 6 months old. 

I am perplexed by Synchrony Bank 's unauthorized access to my credit bureaus, particularly since I did not request a credit limit increase prior to or since XX/XX/. Furthermore, the inclusion of previously considered factors, such as derogatory and collection accounts, in a subsequent assessment to detrimentally impact my credit limit seems unjust and potentially unlawful. 

Thus, I formally request a thorough investigation into these matters, as I suspect that Synchrony Bank may have violated the law in this instance.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation