Consumer complaint received 2018-05-03
Company: SYNCHRONY FINANCIAL
State: TX
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Closing your account
Sub-issue: Company closed your account

Complaint:
XXXX XXXX closed my XXXX XXXX Account because I had not yet used the account. I actually did not request the account. The XXXX XXXX staff pulled my credit supposedly to updated my loan account and announced " you have actually been approved for both a XXXX XXXX Credit Card and Loan Account for the amount of XYZ ''. When I responded that I did not request a credit card account he said, " well just don't use it. '' However, if I closed the account I knew that it would negatively impact my credit score. So I kept the account open until with the intent that I would use the card as needed when my loan was paid off and my credit card balances decreased. I was outraged when I received an alert that the account had been closed and that it would impact my credit score as a result of the closure as well as lowering my credit use ratio. Below is my communication with XXXX XXXX regarding the closure, but more importantly the adverse action as a result of not using their account. As mentioned to Sychrony, if this action is not a violation of consumer rights regarding credit reporting it should be and no customer should be subject to closure of an account in good standing or adverse impact to their credit score because the company was not profiting. I actually have another store account ( XXXX XXXX XXXX, also in good standing ) that is managed by XXXX XXXX. Therefore, this is the type of service that they are providing to a customer that they are actually profiting from. 


-- - Original Message -- - From : Customer ( XXXX ) > Received : XX/XX/18 XXXX XXXX  MDT To : XXXX Subject : Account Information Please advise why my account was closed without notice or authorization. Closing of an account results in adverse impact on my credit score. It appears that my account was closed because I had not yet made a purchase on it from XXXX XXXX. Please reinstate my account without accessing or impacting my credit as it was prior to the closing of the account to limit adverse action by XXXX XXXX on my credit report without cause due to delinquency. 


Thank you! 


From : Customer Service To : Customer XXXX 

XX/XX/18 XXXX EDT Hello XXXX, Thank you for your recent inquiry regarding your XXXX XXXX   account, and the opportunity to be of service to you. 


We certainly understand your concern you were not notified of this closure. While XXXX XXXX is required by law to provide written notification to accountholders if their accounts are closed based on information received from one of the major credit bureaus, notification is not required if closure is due to inactivity. On behalf of XXXX XXXX, I regret any inconvenience or frustration this situation may have caused you. 


We understand if you are disappointed by this action and apologize for any inconvenience you may have experienced. As a result of our review, the action we have taken on your account remains unchanged. 


We appreciate you as a valued XXXX XXXX account customer. If you have any questions or if we may be of further assistance, please contact us via the Online Message Center or at XXXX. 


Sincerely, XXXX XXXX. 

XXXX Customer Service Account is owned by XXXX XXXX From : Customer XXXX 

To : Customer Service XX/XX/18 XXXX EDT Reply XXXX XXXX The priority of my communication was not the lack of notification and whether you are required by law to provide notification prior to the closing of an account. I think that my priority was clear that your action demonstrates that customers should be punished for not using the account or managing their credit and subject to adverse action against their credit score. I have at least one other account with another financial institution that has a XXXX balance and have not been subject to adverse action because I have not borrowed from and paid the financial institution interest. If this action is not a violation of any regulatory requirement of the Fair Credit Reporting Agency, it should be and should be communicated. I hope that other customers will. Thank you for your response.

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 non-monetary relief