Consumer complaint received 2023-04-26
Company: SYNCHRONY FINANCIAL
State: TX
Product: Money transfer, virtual currency, or money service
Sub-product: Mobile or digital wallet
Issue: Managing, opening, or closing your mobile wallet account

Complaint:
PayPal written explanation for consumer affairs dated XX/XX/XXXX I have been a PayPal credit customer for years with an excellent payment history. I am XXXX years old ; I have Social Security income direct deposited in my bank account on the XXXX of every month. Over a year ago, I linked my checking account to my PayPal credit account and set up autopay for PayPal to draft my payment on the XXXX of each month. This way I would avoid possible late payments and fees. 
My last working autopay was my XX/XX/XXXX, payment. My XX/XX/XXXX auto payment failed, but there was no notice from my bank, no NSF or nothing at all. I didn't notice that it wasn't paid. I don't know why it didn't work. However, on or about the XXXX of XXXX, I had my debit card compromised and I thought that might be the reason why. Synchrony bank called me on XX/XX/XXXX wanting payment for XXXX and the upcoming XXXX payment plus a {$30.00} late fee. I paid them {$240.00} with my bank debit card. I told them my autopay wasn't working right, but I had already updated my account info with my new debit card info to see if that may have been the problem. 
The only other activity on my PayPal account was on XX/XX/XXXX. PayPal ran an account verification for a cash transaction from my daughter. That was six days before my XXXX payment failed, but I don't know if this has anything to do with it or not. Apparently, no one knows, but I once again assumed all was correct. So, there was no draft in XXXX. ( Pay Pal required me to pay my XXXX payment in advance in XXXX ). I was away from home for an extended time for the holidays, didn't notice my XX/XX/XXXX draft failed. I had no notice on my bank statement, no NSF, nothing. I returned home to find a letter from synchrony bank dated XX/XX/XXXX, saying my account was closed due to dishonored payments. Still nothing was showing on my bank, no NSF, nothing. 
I contacted XXXX via phone call to make XXXX and XXXX payments plus a {$41.00} late fee and paid them {$250.00} on XX/XX/XXXX. They reactivated my account and waived my late fees, which they say {$71.00} was applied to my debt. I ask customer service for the third time what could be wrong. It was suggested that my bank was blocking the payments. The next week I received another letter from PayPal dated XX/XX/XXXX, again saying my account is closed for dishonored payments. I went to my bank, they said they have no idea what happened, but they haven't had a stop-payment on my account since XXXX. 
On XX/XX/XXXX, PayPal attempted to draft my XXXX payment for {$130.00} ( {$100.00} + 26 dollars late fee ). I called customer service for the fourth time on XX/XX/XXXX, and explained the situation again. I spoke to XXXX and told her I knew this wasn't working again. I made a payment of {$100.00} through my PayPal account using my debit card online. She said she would adjust my account so that my {$100.00} XXXX payment would make me current. The late fee would be removed because it was the XXXX which is my due date. She was, once again, able to reactivate my account and I was current until XX/XX/XXXX payment. She said to wait until my payment cleared my bank and then go to my account and totally remove my bank and set it up again and see if that fixes it and I did. 
I received a third letter dated XX/XX/XXXX, that once again my account had been closed due to dishonored payments. I got an email notice that my payment was past due, and they needed {$170.00} to catch up making my XXXX payment as well. On XX/XX/XXXX, synchrony bank ( which is also PayPal credit ) called wanting payment. I called them back on XX/XX/XXXX, explaining the situation for a fifth time. I paid {$26.00} late fee payment, and my account was said to be current owing {$140.00} due on XX/XX/XXXX. 
I was advised that I should have stopped using autopay back in XXXX when it didn't work. I didn't know it didn't work or I wouldn't have used it! If you had an auto pay that failed, would you just stop using it with no questions asked? This was the first time anyone suggested not using autopay. I used auto pay to avoid late payments and now I have five NSFs being reported to credit bureaus as late payments. 
I spoke to XXXX in customer service and explained for a 6th time. She said unfortunately once those figures are in the system fees and penalties are assessed and there was nothing she could do. She said she tried to reopen my account and could not, and if I wanted, I could try to open a new account in the future. 
I have had no reasonable answer to this dilemma in five months of trying. As a result, I overpaid my normal payments by about {$100.00}, my account is closed for the third ( and apparently last ) time, I have NSFs and late payments being reported to credit bureaus. I have no idea of what happens when they try to draft my bank, but obviously these drafts are not getting to my bank, I dont know where they go, but Pay Pal says they are being returned as NSFs which is not true. I made my XXXX payment online through my Pay Pal account and will probably have to continue that way or they will try to auto draft again, which wont work and all of this will happen again. I cant stop a draft at my bank that they have no record of. 
Thank you for your consideration in this matter, PayPal has all my calls recorded. I feel like I've done nothing wrong, I am being punished because THEIR system has failed! NO ONE AT PAY PAL EVER CHECKED MY BANK INFORMATION or offered me a reasonable solution as to why my auto pay doesnt work or how to fix it.

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