Consumer complaint received 2017-07-17
Company: SYNCHRONY FINANCIAL
State: AL
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Closing your account
Sub-issue: Company closed your account

Complaint:
Synchrony Financial is using their right to close good consumers accounts with the foreknowledge that doing so injures the consumer credit rating. ( 1 ) They without notice ( and that 's fine ) wait until you use your card and then purposefully lower your limit to within {$25.00} or lower to your balance. Example : They issued me a credit card with a {$800.00} limit. I kept a zero balance from month to month by paying off what I used every month. An emergency arrived and I used {$370.00} of my card and made my minimum payment on time for the next two months. The third month, before my payment was due Synchrony Financial lowered my limit to {$380.00}. This affected my credit utilization rate and made my score drop. This happened to 3 of the six cards I had brought Synchrony Financial. I called the bank and was told I would receive information in the mail but that they could do this when they felt the need to do so. Never received an explaination why. ( 2 ) They without notice ( and that 's fine ) closed two of my accounts that I had been using with no problems, late payments or any default whatsoever. No explaination for one of them, the other they said they had a probable system that automatically closes the account if your credit report changes.
My credit report had only changed because THEY lowered and closed some of my accounts. No other account on my credit file through any other institution was affected in any way. Only Synchrony Financial accounts.
In the CARD ACT 2009 institutions are no longer suppose to use Universal Default. Although none of my other credit accounts had received a late payment or any other default, Synchrony Financial says they used information from those accounts to lower or close my accounts. The Universal Default, I know, is mainly to stop them from raising interest rates on people because of other accounts they have ' honestly this is not the only thing it should cover. I do n't agree with raising my interest rates due to other accounts I have, BUT at last if they do that it wo n't affect my credit rating that others are able to see to make a judge mental determination about me. I had a goal in place to be a first time homebuyer, but Synchrony Financial actions cancelled that. I was turned down for 4 other creditors. I was humiliated and embarrassed. They messed up my credit rating by punishing me for abiding by their own terms and agreements.
Synchrony Financial is doing this to thousands, if not millions. They should not be able to affect people the way that they do especially those who are honoring their terms and paying on time. They are using their legitimate access to this system in an abusive manner. Whatever their inside or outside probable system is, they should be regulated and not allowed to affect any outside entity 's decision. If they want to close or lower my accounts, do that, but do n't report it to an outside entity as if I 've done something wrong to cause you to close or lower my credit. It 's humiliating at least and very emotionally stressful.
At least they should not be able to touch good standing accounts until the expiration date they tack on the card. AND they should make sure they disclose to all potential consumers that they will do close your account or lower your limit even if you are doing nothing wrong. They state we can close the account for any reason, but then follow that up with late payments, defaults, etc ... so any honest hearted consumer would not expect an out of the blue lowered limit or closed account if they are paying on time and have opt out of credit limit increase request.
Your laws should protect consumers from this irrational and negligent practice. Synchrony Financial knows that their cause will affect others in a negative way, yet they continue to do it every day.

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