Consumer complaint received 2023-09-26
Company: SYNCHRONY FINANCIAL
State: MD
Product: Credit card
Sub-product: Store credit card
Issue: Advertising and marketing, including promotional offers
Sub-issue: Confusing or misleading advertising about the credit card

Complaint:
Dear Sir / Madam, This is regarding the consumer account ending in XXXX ( formerly XXXX ) which as of XX/XX/2023 has been charged with deferred interest in the amount of {$590.00} The purpose of this letter is to dispute the legitimacy and legality of this interest charge which is in violation of the Code of Federal Regulations under 12 CFR Part 1026 due to the failure on the part of Ashley XXXX XXXX, XXXX ( hereinafter referred to as Ashely ) and Synchrony Financial ( hereinafter referred to as Synchrony Bank ) to follow the guidelines set forth in 12 CFR Part 1026 which I will outline below; Under 12 CFR Part 1026 1026.16 ( b ) ( 2 ) ( 2 ) If an advertisement for credit to finance the purchase of goods or services specified in the advertisement states a periodic payment amount, the advertisement shall also state the total of payments and the time period to repay the obligation, assuming that the consumer pays only the periodic payment amount advertised. The disclosure of the total of payments and the time period to repay the obligation must be equally prominent to the statement of the periodic payment amount. 

Note : Neither the advertisement from Ashely nor the loan documents or subsequent statements disclose the monthly payment amounts needed to pay off the extended credit during the promotional period in order to avoid interest charges. 

1026.16 ( d ) ( 6 ) ( ii ) ( C ) ( C ) In the case of a promotional payment, the amounts and time periods of any payments that will apply under the plan. In variable-rate transactions, payments that will be determined based on application of an index and margin shall be disclosed based on a reasonably current index and margin. 

Note : Again here, the amounts were not disclosed. 

1026.16 ( h ) ( 3 ) ( 3 ) Stating the deferred interest period. If a deferred interest offer is advertised, the deferred interest period must be stated in a clear and conspicuous manner in the advertisement. If the phrase no interest or similar term regarding the possible avoidance of interest obligations under the deferred interest program is stated, the term if paid in full must also be stated in a clear and conspicuous manner preceding the disclosure of the deferred interest period in the advertisement. If the deferred interest offer is included in a written or electronic advertisement, the deferred interest period and, if applicable, the term if paid in full must also be stated in immediate proximity to each statement of no interest, no payments, deferred interest, same as cash, or similar term regarding interest or payments during the deferred interest period. 
Note : The advertising material published by Ashley via XXXX mailers clearly state the special promotion as Interest Free for the specified promotional finance period without any mention of a term or disclaimer such as if paid in full nor is such a term mentioned in any of the official bill of sale or loan contract documents. 
( 4 ) Stating the terms of the deferred interest or similar offer. If any deferred interest offer is advertised, the information in paragraphs ( h ) ( 4 ) ( i ) and ( h ) ( 4 ) ( ii ) of this section must be stated in the advertisement, in language similar to Sample G-24 in appendix G to this part. If the deferred interest offer is included in a written or electronic advertisement, the information in paragraphs ( h ) ( 4 ) ( i ) and ( h ) ( 4 ) ( ii ) of this section must also be stated in a prominent location closely proximate to the first statement of no interest, no payments, deferred interest, same as cash, or similar term regarding interest or payments during the deferred interest period. 
( i ) A statement that interest will be charged from the date the consumer becomes obligated for the balance or transaction subject to the deferred interest offer if the balance or transaction is not paid in full within the deferred interest period ; and ( ii ) A statement, if applicable, that interest will be charged from the date the consumer incurs the balance or transaction subject to the deferred interest offer if the account is in default before the end of the deferred interest period. 
Note : Nowhere in the Bill of Sale or in the loan contract does is clearly disclose or mention a statement that indicates the date when interest will be charged from or the exact date when interest will begin incurring in accordance with paragraphs i and ii above. 
Considering the above nonconformance to the XXXX on the part of Synchrony Bank and its retail partner, Ashley on this transaction, I have offered, in good faith, to settle this account and pay it off in its entirety, less the deferred interest amount charged retroactively in XXXX of XXXX in the amount of {$590.00}. 
Hence, I have offered to pay a lump sum of ( {$1100.00} - {$590.00} ) = {$520.00} which includes the remaining principle plus accrued interest since the lapse of the 12-month interest free promotional period. Thereby, with the payment of {$520.00} settling my obligations entirely with this account. 

I gave Synchrony Bank ten ( 10 ) business days from the receipt of this letter to respond to this dispute this or provide a counteroffer of settlement. No response was received within that time period, despite several attempts via Certified Mail to the company 's official addresses in both XXXX, FL and XXXX, PA. The first letter was sent on XX/XX/2023. No response was ever given. 

Kind Regards, XXXX XXXX. 
XXXX XXXX XXXX XXXX. 
XXXX, MD 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