Consumer complaint received 2018-11-21
Company: SYNCHRONY FINANCIAL
State: NC
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Unexpected increase in interest rate

Complaint:
I purchased XXXX XXXX from XXXX XXXX XXXX in XXXX XXXX North Carolina on XX/XX/2018 for {$2100.00} ( receipt attached ). As indicated on the receipt, the purchase was financed through CareCredit Financing account number XXXX. A copy of the Account Agreement provided by XXXX XXXX XXXX at the time of purchase is attached. 
The agreement states, Interest at the rate of 26.99 % will be charged to your account from the date of purchase if the promotional purchase is not paid in full within the promotional period. However, the Account Agreement does not state promotional period. I was under the impression the account would be paid in full before the end of the promotional period if I paid the specified monthly payment amount.

I enrolled in Autopay and received monthly emails ( attached ) from CareCredit/Synchrony bank with a link to the monthly statement. I knew the payments were automatically deducted and although the emails state the monthly payment amount, they did not state interest charges or the promotional period. There was never a reason to think it was necessary to check the statements. 
In XXXX, I noticed the balance was high. I was shocked when I logged into my account to find I was charged {$860.00} in interest including {$580.00} in deferred interest in XX/XX/2018. That is {$860.00} in interest on a XXXX loan! I am extremely conscientious about paying my bills and have an XXXX FICO score. I have never had an issue with numerous other accounts in which I take advantage of e-bills and autopay. I immediately paid the account in full as soon as I became aware I was being charged interest. 
I clearly would have paid off the loan before the end of the promotional period if CareCredit/Synchrony bank had clearly and accurately disclosed the terms and conditions or included interest charges along with the payment amount in the attached monthly emails. No doubt, it is extremely profitable for CareCredit/Synchrony if consumers are not aware of the promotional period and exorbitant interest charges. I sincerely doubt CareCredit/Synchrony would want to release information regarding 1 ) the number of consumers who have the same issue and 2 ) the amount CareCredit/Synchrony collects as a result. 
The customer service representative ( id # XXXX ) at Synchrony said the information was clearly provided in the online statements and that it would take 30 days to receive a copy of the agreement they have on file. In retrospect, I should have been less trusting and checked my monthly statements. I will not make that mistake again. However, there should never be a question as to whether a consumer was made fully aware of the length or end of a promotional period. A separate notification might be difficult to administer but it would be easy for CareCredit/Synchrony to include the promotional period in the attached Account Agreement and  monthly emails.

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 monetary relief