Consumer complaint received 2023-03-07
Company: SYNCHRONY FINANCIAL
State: NY
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Problem with fees

Complaint:
XX/XX/2023 Dear The purpose of this letter is to inform you about a credit that I have with Synchrony Bank XXXX. 

I opened a credit card with Synchrony Bank in order to take advantage of the promotional offers they have available and to establish an excellent credit rating. I have been using the card responsibly and paying off my minimum balance each month in full. 

Due to the fact that I was out of work for a few months, my finances were affected, which caused me to seek assistance from the state in order to cover my monthly costs. 

To ensure that I could remain financially stable, I applied for and was granted public assistance to help pay for my living expenses. As a result, the bank was alerted to this situation, According to the calculations, the maximum credit limit for this account is XXXX dollars i was paying exceptional well a minimum of XXXX per month. Banks use credit limits to ensure that customers do not take on too much debt. With the bank being aware of my public assistance status, I was able to remain financially stable and not take on more debt than I could handle. The fact that I was paying a minimum of {$35.00} a month further reassured the bank that I was doing my best to stay financially responsible. My late fee has increased to XXXX, which is equal to {$75.00} per month, when I can only afford the minimum of XXXX. 

Although I was doing my best to keep up with my payments, I was still charged a {$40.00} late fee by the bank. 

After calling the customer service number to speak with management, despite my efforts, the bank still imposed an unreasonable penalty, so I took the extra step of phoning the customer service line to try and reach a higher-up, yet the wait time was unmanageable. 

I am charged {$75.00} per month if I am late with my payments, and if I fail to pay by the due date, the bank will report me to the credit bureau. 

Whenever I reach a certain amount to clear the late fee, I would have to repay the amount on the late fee on another payment date in the future, which would lead to me being charged a late fee the next month. 

This creates a situation in which I am paying more for being late and the cost is increasing each time I miss the deadline. 

The credit card continues to accrue debt each time I have to pay the minimum late lee There needs to be some type of negotiation plan because i could possibly have a XXXX balance by the end of this year, but these late fees are creating a great deal of stress and I am fully committed to paying them back. 



I regret taking out this credit card the day it was issued because it adversely affected my credit score. 

This late payment of XXXX dollars is too much for a minimum monthly payment of XXXX dollars. 

The issuer of this credit card has reported the late payment to the credit bureaus, which could have negatively affected your credit report. Additionally, the issuer may have applied a penalty rate or late fees, which could have made it difficult to pay the minimum monthly payment. 

XXXX XXXX

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