Consumer complaint received 2022-12-26
Company: SYNCHRONY FINANCIAL
State: HI
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Advertising and marketing, including promotional offers
Sub-issue: Didn't receive advertised or promotional terms

Complaint:
Purchased a XXXX XXXX  computer online in XX/XX/2022 and used Synchrony/Paypal to finance at 0 % interest for twelve months with a required monthly minimum payment. 1st payment required in XXXX 2022. I have other shorter term 0 % promotional balances as well which will be required to be paid off before the 12 month promotional balance. I have additional non-promotional balances that occur monthly as well. 
In calculating my monthly payment it always includes an adequate amount to completely cover any monthly non-promotional charges. Payments for shorter term 0 % promotional balances are calculated according to the remaining balance and the time remaining on the promotion to assure the balance will be paid off prior to the expiration of the term of the promotion, while fully utilizing the term of the promotion to minimize the required payment monthly. 
The remaining 12 month promotion minimum payment is also included in the total monthly payment. 
Each monthly payment is calculated to meet the terms of financing agreed to at the time of each transaction. 

Since the transaction in XXXX for the XXXX computer with financing terms of 0 % interest over 12 months with a required minimum monthly payment, a period requiring 3 minimum monthly payments to be made, an amount nearly XXXX times that of the required minimum monthly payment has been applied to the 12 month promotional balance effectively reducing the promotional term to 5 months instead of 12 months. I did not agree to this financing term when I made the purchase. 
Synchrony is deliberately utilizing misapplication of payments to increase the likelihood that consumers will not be able to meet the increased payments required to then satisfy the terms of the shorter term financing agreements. Misapplication of payments that prematurely satisfy longer term financing plans that should have been applied to the shorter term financing plans that are due to expire before longer term financing plans expire can then result in consumers needlessly incurring deferred interest charges. This is an attempt at fraud, " wrongful or criminal deception intended to result in financial or personal gain ''. 

I have addressed this with Synchrony Bank representatives on multiple occasions. I am told that it takes 1-2 billing cycles to appropriately reallocate the payments that were received in such a way to comply with the terms I agreed to at the time the purchases were made. This will result in requiring me to make much higher monthly payments to avoid deferred interest charges on the remaining shorter term promotional balances. 

I have encountered similar misapplication of payments with Synchrony/Amazon financing plans as well. It is not an isolated incident but appears to be established practice at Synchrony. 

Payment allocation is done according to instructions that are programmed into a computer. This is premeditated attempted fraud by design. The CFPB should do something about it. I shouldn't have to call the bank to assure they are not trying to defraud me by deliberately misapplying timely payments in an effort to charge interest.

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