Consumer complaint received 2018-02-05
Company: SYNCHRONY FINANCIAL
State: CA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Advertising and marketing, including promotional offers
Sub-issue: Confusing or misleading advertising about the credit card

Complaint:
Re : CareCredit On XX/XX/XXXX, I had dental work done, and my dentist suggested opening a CareCredit account, since there was " no interest, and I might as well pay off my dental work slowly, with no interest. '' So I opened a CareCredit account at my dentist 's office at that time. My original debt was {$2500.00}. 

I set up my CareCredit account for automatic payments from my checking account, and didn't think about it, because I knew there was no interest. 

Approximately a month ago, I looked at the balance remaining to be paid on my CareCredit, and was surprised how high my balance was ( {$1500.00} ), considering how long I'd been paying this loan. 

I emailed CareCredit asking for detailed information on my loan. A few weeks later, I received statements in the mail for the past year ( 2017 ). This is when I realized I had been paying 26.99 % interest on this loan, for the past four and a half years! ( I learned later I actually paid interest for three and a half years. ) I called CareCredit today and spoke with Customer Service agent, XXXX. I explained the situation to him. He was " sorry for the inconvenience. '' I asked specifics of my loan. The original balance on CareCredit was initiated XX/XX/XXXX for {$2500.00}. Apparently, on XX/XX/XXXX, the promotional period ended and I began paying 26.99 % interest! The interest I've paid since XX/XX/XXXX ( {$2500.00} ) is more than the amount of my original loan! 

I paid the balance off today, and closed my CareCredit account. 

In XX/XX/XXXX, CFPB ordered CareCredit to refund {$34.00} million for deceptive Health-Care Credit Card enrollment. The CFPB investigation discovered 1 ) Deceptive Enrollment processes ( " service provider misled consumer '' ), and, 2 ) Inadequate disclosures ( I did not " receive copies of the actual CareCredit agreement, and instead had to rely on the office staff 's oral explanation. '' ) I was a victim of both of the above, however, wasn't notified of a settlement, and wasn't reimbursed. 

There was an enforcement action that was ordered to CareCredit. That enforcement action included : " New disclosers to consumers will include improved descriptions of the deferred-interest product, and CONSUMERS WILL BE WARNED IN ADVANCE WHEN THE PROMOTIONAL PERIOD IS ENDING. '' I was not warned or notified! Therefore I unknowingly and deceptively, began to pay 26.99 % interest for three and a half years.

Total interest I've unknowingly paid ( until now ) is {$2500.00}. CareCredit did not abide by CFPB enforcement orders for full discloser given to them on XX/XX/XXXX. Therefore, I want to file a claim to CareCredit, through CFPB, to be reimbursed the full amount of interest I've paid to CareCredit, {$2500.00}.

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