Consumer complaint received 2020-02-06
Company: SYNCHRONY FINANCIAL
State: MI
Product: Debt collection
Sub-product: Other debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt was result of identity theft

Complaint:
In XXXX of XXXX : I was contacted for the first time regarding this debt. According to PayPal Credit ( Synchrony Bank ), I owe {$610.00} for an account that was opened in XXXX. I informed PayPal Credit that I did not have an opened PayPal account and I never shopped at XXXX nor charged {$390.00} on XX/XX/XXXX, XXXX. I never receive explanation of the other charges. I requested PayPal to run an investigation. 

I requested to be told the contact information for the account, most of the information was not related to me. The representative stated that the contact information needed to be updated so they can run the investigation. 

On XX/XX/XXXX, PayPal Credit sent me a letter stating " Based on our investigation, we have been able to validate your claim of fraud and cofirm that the above account and/or subject transactions fraudulent. As a result of the confirmed fraud, we have removed and/deleted the fraudulent transactions from the account. However, we have also closed this account in order to prevent future fraudulent transactions. 

I waited 90 days, recontacted PayPal Credit to verify the account clearance of debt and closure. The representative advise me the account balance is {$0.00} and the account was closed to fraud. 

On XX/XX/XXXX, ( The first time contacted ) XXXX XXXX XXXX sent a letter stating " We are writing you that we have opened an invesigation regarding your recent dispute ( Never disputed with them ). 

On XX/XX/XXXX, I contacted XXXX XXXX XXXX to inform them that this account was found fraudulent and closed by PayPal Credit. I also read the letter to XXXX. He stated that the account was charged off XX/XX/XXXX. I stated how can a fraudulent closed account be charged off and/or turn over to collection agency. XXXX immediately transfer me to investigation department. 

I requested contact information on the account, most of the information was correct, I informed him that PayPal requested correction to the account information so they could run an accurate investigation. 

XXXX ( investigation dept ) listened to me reading the letter of Paypal investigation stating that the account was fraudulent. I asked the same questions how does a fraudulent closed account get sold and/or turn over to collection. He kept mentioning another Bank that apparently took over Synchrony or Paypal, he was a little confusing to talk to. Once again XXXX stated they need to run investigation. 

At this present time, I am waiting for XXXX investigation findings, I do not know why another investigation needs to be performed when the original creditor ( Synchrony Bank/PayPal ) already found the account to be fraudulent, clear of debt, and closed. 

I am attaching the PayPal fraudulent findings letter and XXXX XXXX XXXX letter. 

Thank you for any assistance you can provided to solve this matter.

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