Consumer complaint received 2022-07-21
Company: SYNCHRONY FINANCIAL
State: MI
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Trouble using your card
Sub-issue: Credit card company won't increase or decrease your credit limit

Complaint:
My complaint is with Synchrony Bank, which is the company that provides credit card services for Guitar Center and Pep Boys, the companies I have cards for. I apologize for not having as many details for Guitar Center as I do for Pep Boys, but a lot of it applies to both cards. I opened the Synchrony/Guitar Center card on XX/XX/XXXX and was approved for a {$1300.00} credit limit. I opened the Synchrony/Pep Boys card on XX/XX/XXXX and was approved for a {$1000.00} credit limit. 
In early XX/XX/XXXX, Synchrony informed me that my credit limit for the Guitar Center card was being reduced to {$610.00}. My balance at the time of the reduction was {$580.00}. I currently owe {$440.00} on this card. On XX/XX/XXXX, Synchrony informed me that my credit limit for the Pep Boys card was being reduced to {$400.00}. I currently owe {$380.00} on this card. Both times, the reasons listed for these reductions were : -Delinquent or Derogatory Real Estate Secured Loan -Balances on Accounts Too High Compared to Credit Limits and Loan Amounts -Delinquent or Derogatory Accounts -Average Time Since Revolving Accounts Opened is Too Recent I can't say what my credit rating was when the Guitar Center card was reduced as I don't have the Synchrony letter about the reduction anymore, but in the letter for the reduction on the Pep Boys card they state that my XXXX credit score was XXXX on XX/XX/XXXX. When I checked XXXX XXXX for my XXXX credit score on XX/XX/XXXX, it showed as being XXXX on XX/XX/XXXX, down from XXXX on XX/XX/XXXX. It did not decrease below XXXX between these dates. When my Guitar Center card reduction happened, I called Synchrony for clarification and they reiterated the reasons above. 
It should be noted that my credit score was XXXX points better in XX/XX/XXXX than it was when I was approved for the {$1300.00} Guitar Center credit limit on XX/XX/XXXX. This is also the case when I was approved for the {$1000.00} Pep Boys credit limit on XX/XX/XXXX. It should also be noted that the delinquent or derogatory real estate information was 3 late payments from XXXX. This was known information when I was approved for both cards, nothing has changed whatsoever in regards to my mortgage, which has been on time and current since XX/XX/XXXX. 

Aside from the 3 missed mortgage payments from XXXX, I don't have a single derogatory remark on my credit report, regardless of credit reporting agency. Every account is paid on time and shows as so on the reports, whether the account is a credit card, a personal loan, or my mortgage. And the last new credit account I've opened was on XX/XX/XXXX, for a XXXX credit card provided by, you guessed it, Synchrony bank. In addition, I don't have a single card maxed out, not by a long shot. Some of the balances may be high, but nothing is maxed. 

The reason I'm telling you all this is because, aside from " Balances on accounts too high compared to credit limits and loan amounts '', Synchrony had no legitimate reason to lower either card 's credit limit. My belief is that they arbitrarily lower these limits on their cards as the cardholder 's application approval date nears it's one year anniversary, which is detrimental to both the cardholder and the vendor that Synchrony provides their services for. 

This practice is detrimental to the cardholder because the reduction of the credit limit negatively impacts their credit rating, causing their credit score to go down and severely hindering any future credit application approvals, including applications for housing, buying a vehicle, etc. 
This is also detrimental to the vendor as it impacts any future business they may receive. A perfect example is that I'm due for an oil change and had intended to go to Pep Boys for the service and pay for it on my card, but now that I only have {$11.00} available on my card I have to think of another option for getting the service done, including going to a different service provider. 

I understand that I may not ever have an emergency that would require my making a purchase of some kind at Guitar Center, but part of the reasoning behind my having the Pep Boys card was specifically for peace of mind at the possibility of having to cover the cost of emergency repairs for my car. Synchrony reducing my credit limit to the point that my card is all but maxed out takes away that peace of mind, not to mention puts me in a possible hardship to cover any vehicular repair emergencies that may arise. I haven't missed a single payment to either card and have paid both on time every month going back to the first statement on each. 

I am asking for you to investigate Synchrony Bank over this business practice, as I believe that they are causing possible financial hardships to consumers as well as negatively impacting consumers credit ratings.

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