Consumer complaint received 2023-03-11
Company: SYNCHRONY FINANCIAL
State: FL
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Unexpected increase in interest rate

Complaint:
FORMAL COMPLAINT Formal Request Account Number Ending in XXXX My name is XXXX XXXX, and I am writing to you, to request the removal of all negative payments from my credit report ( XXXX, XXXX, XXXX ). In support, I want to state the following : 1. The account was opened on XX/XX/XXXX. 
2. On XX/XX/XXXX, I entered into a verbal agreement with Synchrony Bank, due to COVID19 financial complications. 
3. On XX/XX/XXXX, I received a Synchrony Bank letter that laid out the COVID19 recovery plan I was enrolled and approved for. 
A. A 60-month special payment plan program set to expire on XX/XX/XXXX B. The plan reduced the monthly minimums to {$36.00} per month. 
C. A reduced interest rate of 0 % APR will be applied to your next billing cycle. 
D. The account is closed for future purchases. 
E. The Customer Assistance Plan extends up to 60 months from the date of this letter, unless completed or terminated earlier. ( Maturity date was extended ) The Coronavirus Aid, Relief, and Economic Security Act ( CARES Act ) will provide emergency assistance to healthcare providers, individuals, families, and businesses affected by the novel Coronavirus ( COVID-19 ). 

The CARES Act protection covers a " covered period '' as the period starting XX/XX/XXXX, until 120 days after the end of the national state of emergency declaration, which is XX/XX/XXXX. 

If the consumer was current on an obligation at the time of an accommodation approval, the account must be reported to CRAs as current if the consumer is complying with the accommodation agreement. 15 U.S.C. 1681s-2 ( a ) ( 1 ( F ) ( ii ) ( I ). 

In XX/XX/XXXX, my statement was around {$250.00}, and in XX/XX/XXXX, my statement dramatically increased to around {$1600.00} ( 84.76 % fee increase ). 

Meanwhile I was still current, I was informed over the phone the interest were going to be removed, since I was in a COVID19 program. 

I requested a new statement, because I was completing all my payments and I did not want any issues. 

The representative assured me that a new statement would be sent out, and I could pay the amount I owed, which was around {$250.00}. I never received the corrected statement. 

I was later informed that the 84.76 % fee increase was due to a special promotion which incurred backup interest, and this goes against the written agreement ( A reduced interest rate of 0 % APR will be applied to your next billing cycle and payment plan program set to expire on XX/XX/XXXX ), received on XX/XX/XXXX. ( See enclosed ) When I agreed to COVID19 Cares Act program, Synchrony Banks representative misrepresented material facts, when asked about backup interest : NO BACKUP INTERESTS WILL BE ADDED. ONLY PAY WHAT YOU CURRENTLY OWE. 

This above behavior goes against Synchrony Banks Code of Conduct, which states : Each employee, officer and director should protect the Companys reputation by dealing fairly and honestly with Synchrony Financials clients, customers, service providers, regulators, employees and the public. No one should take unfair advantage of another through manipulation, concealment, abuse of privileged information, misrepresentation of material facts or any other unfair practice. We are committed to customer transparency and fairness. 
Our Policy : Promote fair customer treatment and prevent unfair, deceptive or abusive practices and illegal discrimination Moreover, the misrepresentation and concealment of material facts from the call to the written agreement goes against : Under the Dodd-Frank Wall Street Reform and Consumer Protection Act ( Dodd-Frank Act ), it is unlawful for any provider of consumer financial products or services or a service provider to engage in any unfair, deceptive, or abusive act or practice. 

I am formally requesting the removal of all negative history from my credit history due to : 1.COVID19 Cares Act program with a written contract. ( See enclosed ) 2.COVID19 Cares Act program written contract overrules the old agreement. 
3.Synchrony Banks representative concealed and misrepresented material facts on our call. 
Synchrony Banks unfair, deceptive, and abusive practice have caused me extreme financial hardship for over two years and with this letter I am requesting for all the negative history to be removed from my credit bureaus ( XXXX, XXXX, XXXX ) as soon as possible. 

Thank you in advance and I hope to hear from you as soon as possible. This is an urgent 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