Consumer complaint received 2023-12-23
Company: SYNCHRONY FINANCIAL
State: GA
Product: Credit card
Sub-product: General-purpose credit card or charge card
Issue: Problem when making payments
Sub-issue: You never received your bill or did not know a payment was due

Complaint:
Company failed to provide all necessary elements of a contract with consideration being the number one element. Company didn't put anything up of value. In their XXXX SEC filings it mentioned " Our primary funding sources include cash from operations, deposits ( direct and brokered deposits ), securitized financings and senior and subordinated unsecured notes. '' " We access the asset-backed securitization market using the Synchrony Card Issuance Trust ( SYNIT ) through which we may issue asset-backed securities through both public transactions and private transactions funded by financial institutions and commercial paper conduits. In addition, we issue asset-backed securities in private transactions through the Synchrony Credit Card Master Note Trust ( SYNCT ) and the Synchrony Sales Finance Master Trust ( SFT ). '' Asset Backed Securities are created when a company sells its loans or other debts to an issuer, a financial institution that then packages them into a portfolio to sell to investors. They also mentioned that " Our asset-backed securities are collateralized by credit card and auto loans. '' What this mean is that they used me application/ promissory note and sold it to receive cash. '' Which means they didn't put up anything of value. Meaning they didn't disclose that our signature and application was being used to borrow money. This goes against the meaning of a contract. One essential element of contract is Certainty and Consideration and I was never made aware of this. To be enforceable, a contract must include certain terms, and the ability to fulfill the essential terms of an agreement must be guaranteed. These terms must be clear and unambiguous. There are two essential terms in any agreement : the first one is consideration or price to a bargain ( something of value given in exchange for something else of value. You didn't put up anything of value at all. consideration-XXXX XXXX XXXX XXXX is a promise, performance, or forbearance bargained by a promisor in exchange for their promise. Consideration is the main element of a contract. Without consideration by both parties, a contract can not be enforceable. For instance, if a person used the money to purchase an XXXX the XXXX is the merchants consideration, and the money is the persons consideration. Synchrony Bank didn't put up any consideration. contract-XXXX XXXX XXXX A contract is an agreement between parties, creating mutual obligations that are enforceable by law. The basic elements required for the agreement to be a legally enforceable contract are : mutual assent, expressed by a valid offer and acceptance ; adequate consideration ; capacity ; and legality. In some states, elements of consideration can be satisfied by a valid substitute. Possible remedies for breach of contract include general damages, consequential damages, reliance damages, and specific performance. Background : Contracts are promises that the law will enforce. Contract law is generally governed by state common law, and while general overall contract law is common throughout the country, some specific court interpretations of a particular element of the contract may vary between the states. If a promise is breached, the law provides remedies to the harmed party, often in the form of monetary damages, or in limited circumstances, in the form of specific performance of the promise made. Elements -- Consideration and Mutual Assent Contracts arise when a duty comes into existence, because of a promise made by one of the parties. To be legally binding as a contract, a promise must be exchanged for adequate consideration. The contracts with Synchrony Bank is void ab initio and no debt is owed. It was never a lawful contract from the start. They are in breach of written agreements, use false and misleading advertisements, act without written permission, authorization, and without the alleged borrowers knowledge to transfer actual cash value from the alleged borrower to the bank and return it as a loan. They never gave me a loan. Banks cant lend money but only credit. I extended my own credit. In their GAAP ( account system ) it shows that the actual cash value shows up like a loan from the borrower to the bank or as a deposit which it is not taxable. So they are committing fraud, tax and securities fraud to be exact and the IRS and SEC will be knowing about this. In your annual report it clearly states that I am the borrower ( by signing the application and giving it value ). My credit card was paid off soon as you used my application/promissory note and got money from it. Case law that supports this is XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  Remedies for Breach of Contract -- Damages If the agreement does not meet the legal requirements to be considered a valid contract, the contractual agreement will not be enforced by the law, and the breaching party will not need to indemnify the non-breaching party. That is, the plaintiff ( non-breaching party ) in a contractual dispute suing the breaching party may only win expectation damages when they are able to show that the alleged contractual agreement actually existed and was a valid and enforceable contract. In such a case, expectation damages will be rewarded, which attempts to make the non-breaching party whole, by awarding the amount of money that the party would have made had there not been a breach in the agreement plus any reasonably foreseeable consequential damages suffered as a result of the breach.

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