Consumer complaint received 2021-05-24
Company: SYNCHRONY FINANCIAL
State: NE
Product: Debt collection
Sub-product: Credit card debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt was paid

Complaint:
RE : SYNCHRONY BANK/QVC CARD Synchrony Bank Corporate Headquarters : Synchrony Bank XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, Utah XXXX ( XXXX ) XXXX QVC, Inc. Global Headquarters XXXX XXXX XXXX XXXX XXXX, PA XXXX XXXX. 

XXXX : Date Approved : XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, SC XXXX ( XXXX ) XXXX On XX/XX/XXXX I opened a QVC/Synchrony Bank credit card online and purchased a XXXX XXXX electric toothbrush for {$79.00} and another item that was returned. I received a credit card number online at point of purchase with a credit limit of {$1900.00}. I never received an actual credit card, however. 

In XXXX, I received an initial bill with {$6.00} due on the first payment as a result of the return. At this time, I attempted to establish an online account to make payments, as I had with all my other recurring credit card, utility, mortgage, and other accounts. However, contacting and working with QVC/Synchrony was an unusually confusing and unprofessional experience where I was referred to various departments and back and forth between QVC and Synchrony. Finally, I was told that neither QVC nor Synchrony could validate my account or even who I was, and had no record of my credit card account number. 

Frustrated with this ridiculous process and waste of time, I set the bill and issue aside thinking that it would be resolved at the next billing cycle or when I received my credit card. Unfortunately, as far as I recall, I never received another hardcopy billing statement from QVC and promptly forgot about the account and the small payment due. 

I never heard from QVC again, nor Synchrony Bank. However, on XX/XX/XXXX of XXXX, while reviewing one of my credit reports, I noticed a fraudulent address on the report : XXXX XXXX XXXX, # XXXX, XXXX, MI XXXX. This was listed as my residence since XX/XX/XXXX ( The proximate time when the QVC account was opened by me and the first bill received ). I live in Nebraska and have no other residences or addresses. I notified XXXX  of this and they promptly investigated and removed the address from my credit report as FRAUD. ( EXHIBIT D ) On this same credit report, there was also posted notice of a collections account for {$290.00} from a debt buyer, XXXX XXXX XXXX XXXX XXXX at XXXX. XXXX XXXX XXXX, SC XXXX ( XXXX ). Along with this account was posted notice that the account had been charged off by Synchrony Bank on XX/XX/XXXX. 

This was all news to me since I had not received billing statements from Synchrony Bank or QVC, had received no correspondence or calls about a late payment or that the account was in danger of being charged off, and did not receive the legally required Notice of Assignment ( NOA ) under Section 136 of the Law of Property Act from Synchrony Bank to inform me that the account had been assigned to the debt buyer XXXX. 

On XX/XX/XXXX, I contacted XXXX at the number on the report. I spoke with XXXX. I explained to her that I had no idea who XXXX  was or why they had put a collections notice on my credit reports, stating that I owed {$290.00}. The only charge I had made on QVC was for a toothbrush at {$79.00}. XXXX said that the balance was probably from late fees and interest, since the card appeared to still be open. I explained that I had received no bills or notice of this, so would not be paying any such fees. I also explained that under FDCPA, XXXX  is required to provide written notice of the debt and collection action, and of my right to obtain validation of the debt ( 15 U.S.C. 1692 ( g ) ( a ) ; 209 C.M.R. 18.16 ), and can not under law, without incurring liability, place a collections notice on a debtors credit reports. This was clearly illegal and damaging. I never received any communications from XXXX, no communications or billing from QVC or Synchrony Bank, no opportunity for debt validation, and did not know who you were until I saw your company listed on my XXXX  report on XX/XX/XXXX. 

XXXX reviewed my account and at first thought that my address was the fraudulent address in Michigan, which apparently was where my bills and information was being sent. When I explained to her that this was a fraudulent address and had nothing to do with me, and that XXXX  had removed it, she seemed to understand the problem I had been having with the account due to a wrongful address and/or credit fraud. XXXX told me she was going to file a dispute and that I would be hearing from them. 

At that time, I also called Synchrony Bank but was unable to get anyone to listen to my concerns since the account had been charged off and was with XXXX. The Bank personnel referred me to XXXX to address my issues. 

On or about XX/XX/XXXX, I received a letter with attachments from XXXX/XXXX sent on XX/XX/XXXX stating that the enclosed information was a verification of my debt and a demand to pay {$290.00} ( EXHIBIT A ). Enclosed was a summary of the debt and original creditor, Synchrony Bank, XXXX. XXXX XXXX, XXXX, GA XXXX, who had charged off the account on XX/XX/XXXX for {$290.00}. Also was attached a billing statement from Synchrony Bank date XX/XX/XXXX, the date of charge off. Ironically, the address on the billing statement was the fraudulent address in Michigan with my name at the top : % XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX XXXX, XXXX, MI XXXX. ( SEE EXHIBIT A ) Here, it is clear by their own fact statement on their billing statement that Synchrony Bank was sending my billing statements and correspondence to a fraudulent or wrong address in Michigan. However, in bad faith, XXXX/XXXX  made no effort to address this error, as had been promised by XXXX on XX/XX/XXXX, and to stop its collections efforts, despite my sending them two letters and substantial documentation to prove that they were in the wrong and should address this issue with Synchrony Bank to remove the charge off from my credit reports ( EXHIBITS E & F ). XXXX also made no effort to remove the illegally placed collections notice on my credit report but persisted in collections and in damaging my credit. 

Finally, as a result of this situation I reviewed my information regarding QVC and found that on XX/XX/XXXX I had received at my real address in Nebraska correspondence from XXXX XXXX, XXXX : XXXX XXXX XXXX, XXXX XXXX, IA XXXX ( EXHIBIT B ). This was a notice that my account with QVC was past due but could be brought current and paid in full for {$39.00}. However, the account number on the notice from XXXX did not match the account number I had received from QVC in XXXX of XXXX, so I had set it aside thinking it was a scam. Finding this notice again, I called XXXX XXXX. XXXX and spoke with a representative. She knew nothing about XXXX/XXXX  or any charge off from Synchrony Bank or collections action. She also said that the account number on their billing statement did not match my account number but that this was their own accounting number for my actual account from QVC. I asked her if I could still pay this balance due for the QVC account and she affirmed this and told me how to find my Nationwide account online. As a result, I went online and paid the {$39.00} balance due to bring my QVC account current. The payment was retained by XXXX and withdrawn from my bank ( EXHIBIT C ). Proof of this payment was also forwarded to XXXX/XXXX  but made no difference to them since they only cared about extorting money from me. The payment was also made to Synchrony via XXXX but was also not acknowledged by removing the charge off. Under law, since I never received a Section 136 NOA, any payment made to the Assignor, here Synchrony Bank, must be accepted and be removed from your accounts balance due. 

Under this law and error, Synchrony Bank would have to reverse its charge off on this fact alone, not to mention the incorrect billing to a fraudulent or wrongful address that violates numerous federal laws, including the Fair Credit Billing Act ( FCBA ), the Truth and Lending Act ( TILA ), and the Fair Credit Reporting Act ( FCRA ). Synchrony Banks sloppy, careless, disorganized management of its QVC accounts, or its lack of providing secure access to online credit card information and billing, was the cause of the charge off and any accumulation of late fees or interest on the {$39.00} balance due. In fact, in Nebraska there is a usury law under which Synchronys {$290.00} interest charge, as it is listed, is illegal. {$290.00} interest on a balance of {$39.00} over six months is 632 % interest. This is usury and such exorbitant interest charge likely violates many federal and other state laws. 

To summarize : 1 ) For whatever reason, Synchrony Bank/QVC sent my federally required billing statements and any other correspondence to a third party or fraudulent address in Michigan instead of to me at my address in Nebraska, where my account was established and my first statement was sent. I discovered this fraudulent address on my XXXX, XXXX, and XXXX  credit reports in XXXX of XXXX and these were removed by these reporting agencies after they conducted investigations. As a result of this error or fraud, my credit was damaged and defamed by a charge off of his account by Synchrony Bank/QVC, a charge off I knew nothing about and for which I received no federally required Notice of Assignment. 

2 ) I paid this account in full for {$39.00} after speaking with XXXX XXXX , XXXX., when discovering their offer and after speaking with a XXXX representative. 

3 ) At charge off on XX/XX/XXXX, Synchrony Bank sold his account to debt buyer, XXXX, for pennies on the dollar. The balance due at that time was {$290.00}, {$250.00} of which that was listed as interest charged by Synchrony for 6 months on {$39.00} principlea return of 632 %, clearly in violation of Nebraskas Usury statute. However, under both contract and under federal and state law, Synchrony Bank/QVC can not legally hold me liable for payment, late fees or interest, or charge-off of his account when I did not receive required billing statements and other notices in regard to his account, and when indeed the account was paid in full to XXXX XXXX , XXXX . 

4 ) I made debt buyer, XXXX/XXXX  fully aware of this situation, sent documentation to support his claims, and two letters of explanation, as well as speaking on the phone about what happened several times, explaining that they had a duty to contact Synchrony Bank/QVC and to remedy the error, including removing negative collections reporting that they had placed on his credit reports. XXXX/XXXX did nothing, other than demand that I prove fraud by filing a police report, despite that I had forwarded the information regarding fraud from my Equifax report. XXXX/XXXX made no considered effort to resolve the situation, missing the point of his dispute and making no attempt to understand and repair it. Instead, XXXX/QVC continue to send me perfunctory validation letters and demands for payment, while continuing to harm my credit by leaving the erroneous and defamatory negative credit information on my reports. XXXX/XXXX  gave the impression that all they care about was collecting money, whether or not this was actually due, a just action, a mistake, or extortion. 

At this time, I simply ask that Synchrony Bank/QVC immediately remove the charge offs from all my credit reports and place a statement of error in my files and with credit bureaus, serving me notice of this action in a formal letter. I also ask that Synchrony Bank contact XXXX XXXX, XXXX, to verify my payment. Finally, I ask that Synchrony contact debt buyer XXXX/XXXX  to report this error and to demand that they also remove any collections information from all of my credit reports along with a letter of explanation to the credit bureaus to be placed in my file. XXXX/XXXX  should also send a letter of apology to me, releasing me from any liability to them for payment. 

If this is not done ASAP, I will have no choice but to sue Synchrony Bank for damages, along with debt buyer, XXXX/XXXX, who I am not releasing from legal liability at this time but giving the opportunity to mitigate their damages to me. This is not an idle threat. I am retired but have a law degree and know my way around the courts in litigation.

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