Consumer complaint received 2021-04-03
Company: SYNCHRONY FINANCIAL
State: NC
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Other features, terms, or problems
Sub-issue: Other problem

Complaint:
1. The Synchrony Bank Fraud Department knowingly took our money and created a {$1200.00} credit balance in our new XXXX XXXX XXXX MasterCard, although we had asked them to XXXX-balance the account, while at the same time they restricted our account and denied us access to our own money. 

2. Synchrony Bank also restricted access to our XXXX XXXX XXXX account, which also had a credit balance and denied us access to our own money. They did this despite the account being in good standing, and NEVER having an outstanding balance. 

This is what occurred : a. XXXX : We had a XXXX Credit Card ( Synchrony Bank ) when were stationed at XXXX XXXX - I was serving in the XXXX Armed Forces at the time, but was attached to and working with the US XXXX at the time. We never had a problem with the card, and always paid it in full. We closed the card in XXXX when we were XXXX XXXX. 
b. XX/XX/XXXX : We opened a XXXX XXXX  XXXX Account with Synchrony Bank. ( We have lived in the US since I retired from XXXX XXXX in XXXX ; we are lawful permanent residents, and I teach at XXXX XXXX University ). Synchrony Bank raised no concerns when I opened the XXXX XXXX XXXX account, and we have used it problem-free since. Again we have never had an outstanding balance, and it is paid in full every month. 
c. XX/XX/XXXX : At our local XXXX XXXX we were offered a XXXX MasterCard also provided by Synchrony Bank. We agreed, provided our basic information, and were approved on-the-spot. We made purchases on the new card of approximately {$1200.00}. 
d. XX/XX/XXXX : The Synchrony Bank Fraud Department sent us a letter saying there was a problem verifying my identity ( SSN ), and they restricted our new XXXX XXXX MasterCard. At the same time they also restricted our XXXX XXXX, which we have used since XX/XX/XXXX, and which had a credit balance on it. 
e. XX/XX/XXXX : We sent the requested information to the Synchrony Bank Fraud Department. We also enclosed a check for {$1.00}, and we asked them to please pay off our balance ; if there was a question about our identity, we did not want there to be any outstanding balance on our account. 
d. XX/XX/XXXX : We received a monthly statement from Synchrony Bank / XXXX XXXX MasterCard indicating we still owed {$1200.00}. We immediately went on-line and paid it off, bringing us to a {$0.00} balance. Again we did not want any outstanding balance if there was any question about our identity, and XXXX had not cashed our check. 
e. XX/XX/XXXX : Even though there was now a {$0.00} balance in the account, the Synchrony Bank Fraud Department received our letter and still cashed our check - despite our request to XXXX the balance, they created a {$1200.00} credit balance in our account. 
f. XX/XX/XXXX : Cashing our check and creating the credit balance in our account, we believed this meant they had simply resolved the problem so we called Synchrony Bank and asked if our XXXX XXXX MasterCard was activate again : We spoke with Ms. XXXX, an Account Manager @ Synchrony Bank - Ms. XXXX reviewed our accounts and seemed to clearly see and understand the situation - she recognized the Fraud Department had trapped our money, but she apologized saying she was powerless to fix the problem ; in her words, the Fraud Department operates behind closed doors and in secrecy. 
g. XX/XX/XXXX : After trying to resolve it for 2 weeks and with our money still trapped by the bank, we wrote to the Bank HQ to file a formal complaint. 
h. XX/XX/XXXX : We received another letter from the Fraud Department ( same as the XX/XX/XXXX letter ) asking us to send them the same information again, the information we had already sent them on XX/XX/XXXX. 
i. XX/XX/XXXX : We sent the same information again, and I called the Synchrony Bank Fraud Department to attempt to resolve the issue. I spoke with Ms. XXXX, who identified herself as the manager of the Fraud Department. I explained what occurred, but Ms. XXXX response was it was the Banks right to restrict the use of our cards ; Ms. XXXX seemed unable to comprehend that her department had knowingly created a credit balance in our account, while at the same time they were also restricting our access to our trapped money. She also did not understand that I had never questioned the Banks right to restrict access to our cards - if there is a question of potential fraud the Bank must have the right to restrict the use of anyones card, to protect their interests, but also to protect us as customers. Please see attached in our letter to the Fraud Department on XX/XX/XXXX - we said : " We understand you have restricted our charge privileges on our XXXX XXXX and our new XXXX XXXX. That is your right to protect your interests and I recognize this also protects our interests, as we would not want our credit used by someone other than us. '' In an effort to resolve the problem I asked Ms. XXXX if I could please speak with who was in charge of the Fraud Department ; Ms. XXXX told me Ms. XXXX ( the CEO of Synchrony Bank ) was in charge of the Fraud Department. I could not speak with Ms. XXXX, I would have to write to her. She then refused to give me Ms. XXXX 's address so I could write to her to try to resolve the problem. 
j. XX/XX/XXXX : I found Ms. XXXX 's corporate address online and I wrote to inform her what was going on - that the Fraud Department had trapped our money, and were restricting us from accessing it - and to register our formal complaint. 

Despite our letters to Synchrony Bank to try to resolve this - to the Fraud Department on XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and to their Manager XX/XX/XXXX - and to Corporate HQ on XX/XX/XXXX, and then to the CEO on XX/XX/XXXX, no one has responded or contacted us. The Bank is silent. 

There is an irony in this situation - the Synchrony Bank Fraud Department, despite their responsibility to protect the Bank and us against fraud ... has abused their power and knowingly trapped our own money from us, which in an odd way ... is fraud. And at the same time they also restricted our XXXX XXXX  XXXX account - also knowing that it was a good account that was always paid in full, and also knowing that it had a credit balance too - they trapped that as well.

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