Consumer complaint received 2019-10-22
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:
I signed up for a Care Credit card through Synchrony in order to pay for some unexpected medical bills. The card is advertised as having 0 % interest rates for larger purchases. 

I charged {$1800.00}. When I could not find any information about the promotional rate on my first statement, I contacted Synchrony to find out what happened. I was told that I was supposed to ask the DOCTOR 's office to charge the card with the promotional rate in order to get it. This is completely abnormal and was NOT made clear when I signed up for the card. Since when do credit card companies allow vendors to set interest rates on each individual transaction? Typically, you make your charges, and then everything is assessed at whatever interest rate the card issuer sets. But apparently, this is not how Synchrony operates. It's up to the cardholder to negotiate the rate with the vendor at the time of payment. If you don't, you get charged the max rate -- as high as 26.99 % -- when you could have been getting 0 %! 

I get rates much lower than this on my existing cards and never would have signed up for Care Credit if this would have been made clear. Here is a copy of a chat transcript with Care Credit for your reference : Good morning, My name is XXXX, I am a live agent. 

my last chat session broke. UGH Please allow me a quick moment to review your account and help you further. 
I apologize for the inconvenience this may have caused. 

all I'm trying to find out is what the current APR is on the balance I have. 
why can no one tell me this??? 

I apologize for that. 

XXXX, I see the APR on the account as 26.99 % XXXX?? 

I thought this card was supposed to offer reduced or 0 % APR to make it easier to pay off medical bills However you have a Fixed pay lower APR promotional balance which is offered at 14.9 % interest rate. 

I get a lower rate than that on my regular VISA, and I could have at least gotten miles! 
This is false advertising Where is the 0 % that was advertised? 

XXXX, you got the Lower APRE offer. 

I still get lower than 14.9 % on my other cards!! 

It completely depend on your choice which one you want to choose at the time of transaction with your provider. 

If I would have known this, I never would have applied for this XXXX card Well, your company made it seem like I would be getting 0 %!! 

I completely understand how you feel. Please do not worry, I am going to report this to the CFPB This can be changed to 0 % interest offer. 

I work at a XXXX, so I know when things are advertised incorrectly I would request you to please contact the provider and change the promotional offer. 
YOU ARE THE PROVIDER You provided the card. 

XXXX, I am sorry for the misunderstanding. Generally Doctors provide various promotions on the account. If you make any purchase above {$200.00} you will be eligible for an interest free promotion with different duration. 

Since when do the vendors set these promotions? 

Based on the amount you will be provided with the duration to pay off the balance, like 6, 12, 18 and 24 months promotion. 

the credit card companies set the promotions. I've never seen such a thing in my life. 
I'm reporting this to the CFPB It is XXXX % NOT MADE CLEAR that I am supposed to ask the DOCTOR for a promotional rate That is totally against the norm ... Would you ever shop at XXXX and ask them to set a promotional rate on a credit card purchase? NO, you would NOT. 

XXXX, I completely understand your concern. 

Promotional rates are set by the card companies. NOT by vendors XXXX, please allow me a minute while i transfer you to one of our supervisors. 

complaint to CFPB is in progress ... 

I am sorry. 
Please wait.

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