Consumer complaint received 2017-09-26
Company: SYNCHRONY FINANCIAL
State: MI
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Other features, terms, or problems
Sub-issue: Other problem

Complaint:
I began working at XXXX XXXX in XX/XX/XXXX, my XXXX year of college ; I was XXXX years old and had no experience using credit cards in my name or work experience until this job and a full-time college student at XXXX XXXX University. I was a sales clerk in the XXXX XXXX store and worked closely with customers. When I applied for the job and started working for the Christmas season, I had no idea I was expected to sign people up for XXXX XXXX credit cards. I quickly learned there was a great deal of pressure from my manager to do this. My manager would get very upset if we did not get at least a few people every week to apply for an XXXX XXXX credit card. My manager also coerced me into signing up for an XXXX XXXX credit card ; it was not something I went into the store on my own to do. I was told by my manager that I needed to have an XXXX XXXX credit card and should have one working there. When I filled out the application, I had only had the job for a couple of weeks and, as I mentioned before, was XXXX years old. I had no previous work experience, no credit history, no cosigner for the card and no ability to make monthly payments. I have no idea why the credit card was approved from XXXX XXXX/XXXX XXXX. 
Per the Credit Card Act of 2009, it was not legal for XXXX XXXX to issue me this credit card without a cosigner and no ability to pay this obligation. 
PUBLIC LAW 11124MAY 22, 2009 ( 8 ) APPLICATIONS FROM UNDERAGE CONSUMERS. 
( A ) PROHIBITION ON ISSUANCE.No credit card may be issued to, or open end consumer credit plan established by or on behalf of, a consumer who has not attained the age of 21, unless the consumer has submitted a written application to the card issuer that meets the requirements of subparagraph ( B ). 
( B ) APPLICATION REQUIREMENTS.An application to open a credit card account by a consumer who has not attained the age of 21 as of the date of submission of the application shall require ( i ) the signature of a cosigner, including the parent, legal guardian, spouse, or any other individual who has attained the age of 21 having a means to repay debts incurred by the consumer in connection with the account, indicating joint liability for debts incurred by the consumer in connection with the account before the consumer has attained the age of 21 ; or ( ii ) submission by the consumer of financial information, including through an application, indicating an independent means of repaying any obligation arising from the proposed extension of credit in connection with the account. 

The law was designed to help protect young college students with no experience with credit cards not get into debt unnecessarily. I fell into the exact trap that many young consumers do and began seeing the balance on this account rise with interest and late fees with no ability to even make the monthly payment during XX/XX/XXXX and XX/XX/XXXX. 

Furthermore, I become very ill in XX/XX/XXXX and was in and out of the hospital until XX/XX/XXXX. I was unable to even work a part-time job during those months and had to withdraw from college and move back to my parents home. I was not receiving any mail and not able to communicate with XXXX XXXX/Synchrony at all during this period as I was primarily hospitalized and on narcotic pain medications. During this time period, my account was turned over to XXXX XXXX XXXX with a balance of {$4700.00}. Again, why would an XXXX-year old be given access to this credit in the first place does not make any sense and is not legal. Every month, more and more late fees and interest added to my balance while I was hospitalized. 

With the help of my parents and obtaining more loans, I have paid off the balance of this debt and my credit is a mess. I am still a full-time college student and this has put me back even further. I believe XXXX XXXX and XXXX XXXX are partly responsible for this mess and that they broke the law.

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