Consumer complaint received 2023-01-16 00:00:00
Product: Payday loan, title loan, or personal loan — Installment loan
Issue: Charged fees or interest you didn't expect — 
Company: SYNCHRONY FINANCIAL
State: CA

Complaint narrative:
On XX/XX/XXXX, XXXX and XXXX XXXX XXXX XXXX XXXX ) purchased XXXX appliances from XXXX XXXX XXXX XXXX XXXX XXXX in the amount of {$7400.00} ( EX A : Invoice ). 

XXXX and XXXX were prepared to pay the entire purchase price at the time of their purchase in XXXX and only signed up for the timed payments when XXXX salesperson XXXX XXXX indicated the payment could be made interest-free with equal monthly payments. At no time did XXXX XXXX inform XXXX XXXX XXXX that the loan would incur interest at 29.99 % after a limited promotional period. XXXX XXXX XXXX had only XXXX prior experience with an interest-free loan when they purchased a new XXXX in XXXX. In the case of the auto loan, XXXX XXXX XXXX were told the amount that they were required to pay and the length of time in which it would be paid off. 

In early XX/XX/XXXX Synchrony mailed a credit card to XXXX & XXXX but that card was never activated since they were only interested in the interest-free payment plan on the appliances purchased from XXXX  ( XXXX XXXX : Unused credit card ). 
XXXX called Synchrony to ask when she would receive a statement regarding the loan and was told the first statement would be dated XX/XX/XXXX and would be mailed to her. Following her telephone call XXXX received a paper statement dated XX/XX/XXXX. ( XXXX XXXX : First statement from Synchrony ) The " Transaction Summary '' of the statement shows amount due and states in uppercase font DEFERRED INTEREST/NO INTEREST IF PAID IN FULL. The Transaction Summary also states in uppercase font INTEREST CHARGE ON PURCHASES {$0.00} XXXX did not read the rest of the statement since the loan had already been described by the XXXX salesperson as interest-free with equal monthly payments. 

The statement provided an online link to set up an autopayment from our bank account. On XX/XX/XXXX XXXX set up the autopayment and received an email confirmation from Synchrony ( XXXX XXXX : Email confirmation of Autopay enrollment ). The confirmation indicates XXXX chose the XXXX XXXX option of {$260.00} monthly. If XXXX made this selection it was done with the belief that the loan was an interest-free loan so long as there was no interruption in the autopayments being deducted from our bank account. 

{$260.00} autopayments were deducted from our XXXX XXXX  account on a monthly basis. 

In early XX/XX/XXXX XXXX asked XXXX for a summary of the autopayments made to Synchrony. When reviewing the summary XXXX & XXXX noticed the cumulative total of the autopayments exceeded the original loan amount of {$7400.00}. The payments at that time totaled {$7800.00}, which was {$390.00} in excess of the original loan amount. ( XXXX XXXX : Autopayments summary reflecting payments through XX/XX/XXXX ) On XX/XX/XXXX XXXX called Synchrony to ask why Synchrony continued to deduct {$260.00} from our checking account after the loan had been repaid in full. ( EX F : XXXX notes from call to Synchrony ). This phone call was the first time we became aware that the interest-free loan was actually incurring 29.99 % interest retroactively to the date we purchased the appliances from XXXX. 

On XX/XX/XXXX XXXX called Synchrony to explain the miscommunication and to request that Synchrony negotiate a settlement based on the loan amount that had already been paid in full. The Synchrony customer service representative refused to discuss a settlement but did admit that Synchrony does not send a notice prior to the end of the promotional period. ( EX G : XXXX notes from call to Synchrony ). 

XXXX & XXXX searched their files for a copy of the XXXX invoice and the Synchrony loan paperwork. They located the invoice ( see XXXX XXXX ) but were unable to locate any Synchrony loan paperwork. If they had received a copy of the Synchrony loan paperwork it would have been in the records they kept for the purchase from XXXX. 

On XX/XX/XXXX XXXX called Synchrony and requested a copy of the signed Synchrony loan paperwork. XXXX was placed on hold for approximately XXXX minutes and then the line was disconnected by Synchrony without any warning. Synchrony never sent a copy of the signed loan paperwork. ( EX H : XXXX notes from call to Synchrony ). 

On XX/XX/XXXX XXXX drove to XXXX and requested a copy of the Synchrony loan paperwork. At that time XXXX was only able to provide a blank sample copy of the Synchrony Application ( EX I : Sample loan application ). At the top of Page ( XXXX ) of the Application it identifies XXXX types of credit promotions and is titled, Types of Credit Promotions That XXXX Be Available. The second type of loan is described as INTEREST FREE AND EQUAL MONTHLY PAYMENTS REQUIRED UNTIL PAID IN FULL ( No Interest ). This is the loan XXXX salesperson XXXX XXXX had described to XXXX & XXXX and they believed they had agreed to. As noted previously, on XX/XX/XXXX XXXX & XXXX were prepared to pay the entire purchase price when they met with XXXX XXXX and only opted for the interest-free loan when he presented it to them. 

On XX/XX/XXXX XXXX emailed XXXX and requested a copy of the Synchrony Bank application XXXX XXXX XXXX submitted to Synchrony with our customer signatures. 

On XX/XX/XXXX XXXX emailed XXXX a signed copy of the Synchrony Application and a Plan Description ( XXXX XXXX : Signed Loan Application + Plan Description ). The Plan Description indicates 18 months DEFERRED/NO INT IF PD IN FULL. The Plan Description does indicate an APR of 29.99 % if the purchase balance is not paid in full but does not indicate what the minimum payment amount must be for the loan to be paid in full in a timely manner. In other words there is no indication that the monthly ACH amount will be {$260.00} and that {$260.00} will be less than the amount needed to pay off the purchase price in 18 months. 

On XX/XX/XXXX XXXX emailed XXXX and asked for an explanation of how the monthly ACH amount was set at {$260.00}. 

On XX/XX/XXXX XXXX emailed XXXX a reply stating, I do not know where {$260.00} came from. But if you signed up for XXXX finance for Synchrony and your total amount purchased, including taxes, was {$7400.00}. You would divide that by XXXX, and your minimum monthly payment would have been {$410.00} to pay it off in full with no interest. I was not present at the time of the purchase. I can't speculate about the conversation you had with XXXX. But you requested your signed paperwork which I have provided for you. 

On XX/XX/XXXX XXXX XXXX XXXX called Synchrony again to request that they have an opportunity to speak with someone about negotiating a settlement based on the loan amount that had already been paid in full. XXXX & XXXX were then transferred to XXXX, a XXXX who confirmed Synchrony will not negotiate a settlement. When XXXX asked XXXX to explain who determines that the monthly payment amount would be {$260.00}, XXXX admitted Synchrony makes that determination. Moments later the call was disconnected without warning by Synchrony. ( see XXXX XXXX, lower portion of exhibit ). The tone of the conversation with XXXX was at all times polite and this can be confirmed by the recording Synchrony made of the call. 

Summary : XXXX. XXXX and XXXX were prepared to pay the full XXXX invoice on their existing credit card at the time of the purchase XXXX. The XXXX salesperson indicated the payment could be made interest-free with equal monthly payments through a Synchrony loan XXXX. The XXXX salesperson never indicated the loan would incur 29.99 % interest at the end of a promotional period that would be set by Synchrony XXXX. An autopayment plan was set up by XXXX without disclosure to her that $ XXXX XXXX payments would trigger a retroactive 29.99 % interest charge at the end of a promotional period. 
XXXX. XXXX did not receive clear communication from Synchrony prior to the end of the promotional period. 
XXXX. Because the monthly payments occurred automatically, until their XX/XX/XXXX conversation with Synchrony, XXXX and XXXX were not aware that the payments had exceeded the {$7400.00} loan amount. As of XX/XX/XXXX XXXX and XXXX have paid {$650.00} in interest and owe {$3900.00} in additional interest. 
XXXX. Multiple efforts to resolve this with Synchrony have resulted in Synchrony customer service personnel refusing to negotiate a settlement and ultimately disconnecting the calls without provocation or warning. 
XXXX. The Synchrony loan process is misleading and predatory.

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