Consumer complaint received 2021-12-31
Product: Credit reporting, credit repair services, or other personal consumer reports — Credit reporting
Issue: Problem with a credit reporting company's investigation into an existing problem — Investigation took more than 30 days
Company: SYNCHRONY FINANCIAL (NJ)

Dear CFPB Complaint Div. : I have grave concerns about the potentially illegal conduct of XXXX XXXX XXXX. Transactions occurred in early XXXX, then my address was XXXX XXXX XXXX, XXXX NJ XXXX. This institution was formerly a different name in previous years with entirely different rules and conduct and is not consistent with previous policies and conduct. In early XXXX of 2021 XXXX XXXX bounced 6 or 7 consecutive check transactions while I had {$9000.00} + in my checking account ready to payout those checks. My current address is XXXX XXXX XXXX XXXX, XXXX XXXXXXXX XXXX XXXX, NJ XXXX. 

I have a small credit card with the same XXXX XXXX which I had thought was on auto pay. It was not apparently. Approximately two weeks after the {$29.00} payment was due on that card, XXXX XXXX without notice, with out a phone call, without a letter, froze my checking account. The claim was that these are linked accounts and that they automatically freeze your checking account when this occurs. There was no phone call, there was no letter, there was no email even after the final 6 or 7th consecutive check was bounced by XXXX XXXX. No call, no notice. This is fraud. This is criminal ; I formally request this Div. make a criminal referral to the XXXX County Prosecutors Office. 

I am not saying that this was 60 days late and they were about to report it to the credit reporting agencies, I am saying this was a {$29.00} two-week late payment and they froze my checking account and bounced 7 transactions with {$9000.00} in the account without telling me. There is a clear duty to let a customer know that they are refusing checks. Furthermore, if a single check had been over {$5000.00} it is a crime that I could be prosecuted for. This conduct by XXXX XXXX can not go unpunished and this Department should use the XXXX NJ Consumer laws to fine and prevent this institution from harming more clients. 

Not only did this cause irreparable harm with fees and the destruction of my credit but the harm became far worse over time. When I realized there was an issue I tried to make a payment on my XXXX XXXX credit card, boy was I in for a surprise. Since its linked to the checking account, guess what, it would not allow me to pay the credit card, thats because the account I was trying to pay it from was frozen even for internal transactions. I am not certain if more checks bounced when I was finally aware to call the XXXXXXXX XXXX  after I tried to pay the credit card online, but does it matter? This was harmful behavior from my financial institution. Some credit card companies took be 3 months to register this checking account back as a form of payment and it was continually rejected on the online systems again and again. With a lot of pushing, I got them resolved. Then I received a letter from Sychrony Bank. They eliminated two credit cards, a Pay Pal credit card with a $ XXXX credit limit and an Amazon credit card with at least a $ XXXX credit card limit. I attempted to use the same letter from XXXX XXXX on XX/XX/2021 from XXXX XXXX XXXX with Sychrony Bank. Mind you this was my only checking account. 

My credit went into a precipitous slide. Pulling {$30000.00} from the available credit limits drastically increased my credit utilization and is a high factor in generating a poorer credit score. This was from a staring credit of around XXXX this year to XXXX and XXXX is now up XXXX points. This has a vicious affect on your finical life. I am getting divorced. I quickly realized that this adversely harmed by chances for a home loan ; even more damages to me. I now rent an apartment rather than pay an exorbitant interest rate on a loan. Rather than gaining equity I am losing money monthly. Sychrony Bank indicated if XXXX XXXX would write a different letter that they bounced payments due to their error or was their fault, which it was, Sychrony would reverse these steps of closing both accounts. A XXXX complaint was filed on XXXX XXXX against XXXX XXXX requesting this action of a new letter, no response was given. The complaint ID was # XXXX. I am not apposed to filing legal action. What the XXXX XXXX has done is abhorrent. I want to give a clear example where communication works in a similar situation. In a margin account at a broker dealer an account can have a margin call requesting additional funds due to a drop in value. The financial institution then notifies the customer they need to deposit X amount of dollars, or a position will be liquidated. Clear communication clear consequences. The money is paid, and everything is resolved. It would be undue harm to just liquidate something if the client has the funds. Common sense. Isnt it common sense if you are going to bounce 7 checks of your customers money and he has {$9000.00} just sitting there but owes {$29.00} on his credit card with your institution to instead just call and say, I am sure this is just an oversite, but you own {$29.00} on your credit card would you like to pay it while I am on the phone? Even leave a message or text, anything. That is not just common sense but the right thing to do but what was done against me was criminal. I am challenging their policy as criminal as no notice whatsoever was given. A subpoena would prove no outbound phone call from XXXXXXXX XXXX was made before I called about this issue. My phone registers calls received and missed calls. I called them when I finally noticed all these consecutive bounced checks and would not have a reason to suspect anything previously with $ XXXX in checking. When I was on the phone with XXXX XXXX and asked them when it was already too late and 7 checks had bounced, if they could take payment on the phone, they said no. They had to request to unfreeze the account first. Oh my XXXX this is insane! I ask for your help please. 

Respectfully, XXXX XXXX ( XXXX ) XXXX XXXX XXXX