Consumer complaint received 2018-05-08
Company: SYNCHRONY FINANCIAL
State: TN
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:
I have several credit cards with Synchrony Bank. Synchrony Bank has reduced my credit limit or closed my account with XXXX XXXX, XXXX, XXXX XXXX, XXXX, XXXX XXXX, and XXXX based off of incorrect and out dated information from XXXX between XX/XX/XXXX to XX/XX/XXXX. The scoring model or process used by Synchrony via XXXX for internal reviews does not extract up to date data. Synchrony Bank also does not report complete and up to date information regarding my credit limits and as a result my credit lines have been decreased and accounts have been closed. 

I had already placed a complaint with Synchrony Bank in XX/XX/XXXX regarding Synchrony Banks decrease of my XXXX XXXX XXXX account, closure of my XXXX XXXX and XXXX Credit Card account. I gave Synchrony Bank authorization to pull an updated credit report in XX/XX/XXXX. I then received a letter on XX/XX/XXXX that Synchrony Bank could not pull a new report because I had a security freeze and fraud alert on my credit report that needed to be lifted. Synchrony Bank has not pulled an updated report for their files since I placed a credit freeze on my account due to concerns with identity theft in XXXX. Synchrony Bank is already my creditor and has a permissible reason to pull my credit report even if I have a security freeze on my report. I dont have to lift the security freeze for them to pull an updated report. If I have to lift the freeze and you are already my creditor then there is something wrong with Synchrony Banks account review process and it is something wrong with the XXXX   system if it does not allow them to extract updated information. However it is grossly irresponsible if you are aware that you don't have updated information but continue to base your credit decisions on outdated or incorrect data. I reviewed my XXXX credit report mailed to my home in XX/XX/XXXX and compared it to previous reports and Synchrony Bank stopped reporting my credit limit on each account where my credit limit was decreased or where my account was closed. When Synchrony Bank and XXXX  fail to report my credit limits it artificially inflates my credit card utilization rate, only reported credit limits are taken into account for the calculation. Instead they use the highest balance. Failure to report my credit limits along with decreasing my limits and closing my accounts based off of outdated information with XXXX, XXXX XXXX, XXXX, XXXX, XXXX, XXXX XXXX and XXXX XXXX has been detrimental to my score. In Synchrony Banks XXXX Fourth Quarter Investor Presentation on XX/XX/XXXX ; the company reports a focus on a higher quality asset base. This is Synchrony Banks prime customer base with a credit score above 660. Customers with scores below 660 are subprime and it appears to be Synchrony Banks focus to remove the subprime customer base from Synchronys portfolio by any means necessary. I have become the subprime customer base by no choice of my own. Synchrony Banks probability of default scoring model is based on outdated credit information from XXXX. Synchrony Bank and XXXX are missing data to properly risk rate me and have me mapped to an alternative scoring system. XXXX has me scored me 100 points less than any other credit bureau. The key factors listed in my Synchrony Bank and XXXX adverse action notices have me listed with recent delinquencies or time with delinquency as unknown in XXXX, XXXX, and XX/XX/XXXX. I dont have delinquent accounts with any creditor. Synchrony Bank is reporting incomplete and inaccurate information to XXXX effecting my utilization. Synchrony Bank has taken adverse action by increasing my APR ; closing ; and reducing credit limits in both XXXX and XX/XX/XXXX but I have not received any notices of Adverse Action including my credit score and the key reasons since XX/XX/XXXX however they continue to take that action when they dont have updated credit data. I would like to see my credit report provided to Synchrony Bank in their internal review. I am not the only person who has experienced this issue. Please see attached complaint from another Synchrony Bank customer at XXXX. My credit score has decreased significantly based on the inactions and actions of Synchrony Bank and XXXX. I have been declined loans and refinancing due to the credit limit decreases and account closures ; its effect on my score has been detrimental. My credit limit decrease that went into effect today with XXXX XXXX has put me as over the limit. The only reason I'm aware of this decrease is because I pay to have credit monitoring notify me of any and all changes. 

Synchrony Bank and XXXX are required to ensure that the variables used in the models are appropriate, predictive, and properly weighted to arrive at the best credit decision and that data inputs are complete and accurate. That would include using updated information and reporting complete information. An accurate scoring model should not only be used to decrease high risk assets from their portfolio but it should also be used to ensure that the scoring does not have a disparate impact for purposes of fair lending. I received a letter from Synchrony Bank stating that they use a sound credit scoring system for probability of default and my limits can be lowered or permanently closed based off of that information. Synchrony Banks credit scoring model is not sound or fair when it is using inaccurate and outdated information. Synchrony Banks scoring model is not sound or fair when it selects to report incomplete information to credit bureaus as a data furnisher under the FCRA. Synchrony Bank and XXXX use of outdated information and alternative scoring because they are missing data or have failed to extract updated data has unfairly limited my choices and access as a consumer and my families choices as a parent.

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