Consumer complaint received 2026-06-08 00:00:00
Product: Credit card — Store credit card
Issue: Other features, terms, or problems — Add-on products and services
Company: SYNCHRONY FINANCIAL
State: TX

Complaint narrative:
Synchrony Bank charged off my PayPal Credit account for {$2000.00} despite the fact that I had been paying for credit insurance ( disability insurance/card protection ) that should have covered the debt when I became disabled and when a federally-declared natural disaster destroyed my home. Synchrony failed to process my insurance claim, charged off the account during a disaster period, sold the debt to a collection agency ( resulting in double reporting on my credit report ), and is now preventing my family from obtaining housing. TIMELINE AND DETAILS : XX/XX/XXXX : PayPal Credit account opened with Synchrony Bank. I enrolled in and paid monthly premiums for credit insurance/card protection to protect me in case of disability or other covered events. XX/XX/XXXX : I was injured in a XXXX XXXX XXXX that left me unable to work. This is a COVERED EVENT under disability insurance policies. XX/XX/XXXX : My family and I were victims of the XXXX XXXX XXXX floods ( federally-declared disaster XXXX ). Our home was destroyed and we were displaced with our children. XXXX XXXX : I attempted to contact Synchrony Bank multiple times via phone calls about hardship assistance and insurance claim processing. Despite repeated phone calls, Synchrony : Never processed my insurance claim Never provided information about filing a claim Never sent claim forms or instructions Continued to report late payments during the disaster period Offered NO disaster relief programs despite federal disaster declaration Refused to work with a disaster victim family Would not provide any supervisor or claims department contact information XX/XX/XXXX : Synchrony Bank charged off the account for {$2000.00} while I was still displaced from the flood disaster. XXXX XXXX : I made multiple phone calls to Synchrony Bank requesting proper debt validation and information about my insurance claim. Synchrony failed to provide proper validation as required by FDCPA Section 809 ( b ). They would not provide : Proof I owed the debt Original signed agreement Accounting of charges Explanation of why insurance didnt cover the debt XXXX ( PRESENT ) : I sent debt validation requests via certified mail AND made additional phone calls. Synchrony still failed to provide proper validation or any documentation proving the debt is valid. XX/XX/XXXX : My wife called Synchrony Bank again to attempt a settlement payment. We wanted to use our tax return to resolve this and move forward with rebuilding our lives. Synchrony REFUSED TO ACCEPT a settlement payment and refused to negotiate. They would not work with us despite our good faith effort to pay. PRESENT : Synchrony is reporting the charge-off to all three credit bureaus AND sold the debt to XXXX XXXX XXXX XXXX which is also reporting a collection. The SAME DEBT is being reported TWICE on my credit report. INSURANCE BAD FAITH : I paid insurance premiums for YEARS specifically to protect against disability and disasters. Synchrony Bank : Took my premium payments Failed to honor the insurance when I needed it Never processed my claim despite multiple phone calls requesting help Never provided denial letter or explanation Never sent claim forms This is INSURANCE BAD FAITH and FRAUD VIOLATION OF DISASTER VICTIM PROTECTIONS : The XX/XX/XXXX XXXX XXXX XXXX floods were federally declared as Disaster XXXX. Federal law and CFPB guidance require creditors to offer hardship programs and work with disaster victims. Synchrony Bank showed ZERO compassion for a family with children who lost everything. Before XXXX, I had PERFECT payment history. The delinquency was DIRECTLY caused by disasters beyond my control. FCRA VIOLATIONS - INACCURATE REPORTING : a ) DOUBLE REPORTING : Synchrony is reporting the charge-off ( {$2000.00} ) AND XXXX XXXX XXXXXXXX is reporting a collection from Synchrony Bank XXXX {$1000.00} ). The same debt can not be reported twice. b ) UNVALIDATED DEBT : I sent debt validation requests via certified mail AND made phone calls. Synchrony failed to provide proper validation. They can not report to credit bureaus what they can not validate to me. c ) INSURANCE CLAIM NOT PROCESSED : The debt should have been covered by insurance. Reporting it as a consumer debt is inaccurate when it was an insured loss. FAILURE TO INVESTIGATE DISPUTES : I have disputed this account with credit bureaus multiple times. Synchronys responses have been inadequate : No explanation of why insurance didnt cover the debt No proof of insurance claim denial No proper validation of the debt Generic responses claiming information is accurate without documentation REFUSAL TO ACCEPT SETTLEMENT : In XX/XX/XXXX, my wife called Synchrony Bank in good faith to offer a settlement payment using our tax return. This showed our willingness to resolve the matter despite believing the debt should have been covered by insurance. Synchrony REFUSED to accept payment or negotiate any settlement. This proves they are not interested in resolution - only in destroying our credit and preventing us from obtaining housing. IMPACT ON MY FAMILY : My family are disaster victims. We lost our home in the XX/XX/XXXX floods. We have children who need stable housing. This inaccurate charge-off on my credit report is PREVENTING us from : Qualifying for rental housing Obtaining a mortgage Rebuilding our lives after a natural disaster My children deserve stability and security. Synchrony Banks actions are keeping my family homeless. REQUESTED RESOLUTION : XXXX. PROCESS MY INSURANCE CLAIM retroactively for the covered events ( disability from car accident, natural disaster ) XXXX. DELETE the charge-off from all three credit bureaus immediately XXXX. RECALL the debt from XXXX XXXX XXXX and delete their collection account XXXX. REFUND all insurance premiums I paid if Synchrony claims the events werent covered XXXX. PROVIDE WRITTEN EXPLANATION of why insurance claim was not processed XXXX. COMPENSATE me for damages caused by inaccurate credit reporting LAWS VIOLATED : Fair Credit Reporting Act ( FCRA ) Section 1681s-2 ( furnishing inaccurate information ) Fair Debt Collection Practices Act ( FDCPA ) Section 809 ( b ) ( failure to validate ) Texas Insurance Code ( insurance bad faith ) Texas Deceptive Trade Practices Act ( DTPA ) Unfair and Deceptive Acts and Practices ( UDAP ) I have SUPPORTING DOCUMENTS such as : Credit reports showing charge-off Credit reports showing Portfolio Recovery collection Proof of disaster ( XXXX XXXX XXXX ) XXXX of car accident and XXXX Certified mail receipts for validation requests Payment history showing perfect payments before XXXX This is not just about money - this is about my familys ability to have a home after a natural disaster. Synchrony Bank is profiting from disaster victims by selling insurance that doesnt pay out, refusing to accept settlement payments, and then destroying credit when people need help the most. I request the CFPB investigate Synchrony Banks practices and force them to delete inaccurate items from my credit report, process my insurance claim, and compensate me for damages.

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