Consumer complaint received 2016-09-19
Company: SYNCHRONY FINANCIAL
State: MD
Product: Credit card
Issue: Billing statement

Complaint:
I am bringing to your attention an issue with the Synchrony Bank/Amazon.Com credit card. I was running XXXX promotional balances, XXXX due XX/XX/XXXX, the other not due until XX/XX/XXXX. In order to ensure that I paid off the promotional balances entirely by the due date and was not stuck with paying accrued interest charges at an astounding 26.24 %, I allocated my monthly payments on an automated payment plan assuming that my entire payment would go toward the promotional balance with the nearest expiration date. However, instead of allocating my full payment each month toward the promotional balance that was due in XX/XX/XXXX Amazon inexplicably allocated ( without any notice to me ) a portion of my payment to the promotional balance that was not due until XX/XX/XXXX. When I called the credit card company, they had no explanation whatever, other that a lot of nonsensical gibberish, so I asked to speak to a manager. When I finally was allowed to speak to a manager she appeared to pretend that she did not understand what I was asking. I finally insisted that she look at the bill with a closing date of XX/XX/XXXX that reflected that my total current promotional balance for XXXX charges with a XX/XX/XXXX expiration date amounted to {$250.00}. I noted that I had paid {$150.00} on XX/XX/XXXX but my bill for the following month with a closing date of XX/XX/XXXX reflected that my promotional payoff amount was {$120.00}. I pointed out that if you subtracted my payment from the {$250.00} promotional balance from the month before I should have owed {$100.00} NOT {$120.00}. The supervisor say they had to apply a part of the payment to the non-promotional balance. I informed her that there was no non-promotional balance on that bill, only XXXX promotional balances. She then said they were " required '' to apply the payments as they did. she informed me that the only time they apply the full payment to the promotional balance is in the month in which the balance is actually due and that at all other times they allocate the payment among all balances due. I complained that their practice made no sense at all and appeared calculated to trick customers into paying too little on the promotional balance so they will end up with such a large payment on the actual due date that they can not make the payment and thereby incur the astronomical accrued interest charges. I pointed out that I had calculated my payments to the dollar, assuming they would allocate ALL of my payment to the balance for the nearest expiration date and if I had not quite by accident noticed what they were doing that I would have been improperly stuck with an improper and possible illegal interest payment. She replied that the only way I could ensure that the full payment would be fully applied to the next due promotional balance would be to telephone them every month and tell them to allocate my payments in that fashion. I told her this was wrong, fraudulent and calculated to trick the customer into paying the accrued interest charges. I said I was going to report this concern to the Consumer Financial Protection Bureau. Today is Monday, XX/XX/XXXX, and I just 15 minutes ago or so hung up from speaking to the supervisor at Synchrony Bank/Amazon.Com credit card company. I am totally and completely dissatisfied with the response provided to me by the credit card company. This to me appears fraudulent on its face and calculated to mouse trap the consumer into thinking he/she is paying off the promotional balance only to find out when it is too late that the credit card company had used some bizarre allocation method that only benefited the credit card company and their ability to charge exorbitant deferred interest charges. I hope you will do anything and everything in your power to end this shameful, deceitful, fraudulent and hopefully illegal practice. 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