Consumer complaint received 2025-12-29 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Trouble using your card — Credit card company won't increase or decrease your credit limit
Company: SYNCHRONY FINANCIAL
State: MI

Complaint narrative:
I am submitting this complaint regarding Synchrony Banks reduction of my credit limit immediately after I utilized my credit line following direct marketing and solicitation from Synchrony. 

Synchrony actively marketed and encouraged me to use my available credit. In reliance on this solicitation, I used the credit line as promoted. Shortly thereafter, Synchrony reduced my credit limit to reflect approximately 90 % utilization, which materially increased my utilization ratio and caused a steep decline in my credit score. 

Synchrony advised that this adverse action was based on an automated algorithm citing the following factors : Bank card balance-to-income ratio Allegedly insufficient payment amounts Loan balances This constitutes an adverse action under the Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681a ( k ), and triggers specific notice, accuracy, and disclosure obligations.

The stated reasons for the adverse action are inconsistent with my documented credit profile and raise concerns regarding compliance with FCRA 1681e ( b ) and 1681m ( a ) : My credit report reflects 100 % on-time payments across all credit accounts All payments on the Synchrony account were made on time and in amounts exceeding the contractual minimum Over the past XXXX years, I have had no delinquencies, late payments, or defaults My loan balances are either paid as agreed or deferred until XXXX, with no current payment obligation Additionally, Synchrony has issued new lines of credit and approved new credit accounts during this same period, which directly contradicts the assertion that my credit profile presents elevated risk. This inconsistency raises concerns regarding the accuracy, integrity, and reasonable procedures used to evaluate consumer creditworthiness, as required under FCRA 1681e ( b ).

Synchrony stated that a notice letter was sent to inform me of the credit line reduction ; however, the letter arrived several days after the adverse action had already occurred. This delayed notification raises concerns regarding compliance with FCRA 1681m ( a ), which requires timely notice of adverse actions, including the specific reasons for the action and the consumers rights regarding the use of consumer report information. 

The timing and nature of the decision indicate that the action was implemented through automated decision-making without meaningful human review, individualized assessment, or verification of accurate and current data. Such practices undermine the consumer protections embedded in the FCRA and increase the risk of inaccurate or unfair outcomes. 

I am a XXXX  mother supporting XXXX children through college. At times, this requires responsible use of available credit. My long-standing payment history demonstrates disciplined financial management and a low-risk profile. Penalizing a consumer for utilizing credit immediately after being encouraged to do sodespite perfect payment historyraises serious concerns regarding fairness, transparency, and compliance. 

As a result of Synchronys actions, I experienced : Artificially inflated utilization A significant and avoidable decline in my credit score Reduced access to credit despite responsible account management I respectfully request that the CFPB review Synchronys practices for compliance with the Fair Credit Reporting Act and UDAAP standards, and require appropriate corrective action, including : Reconsideration and restoration of my prior credit limit based on accurate payment performance Clear disclosure of the consumer report data and criteria used in the adverse decision Confirmation that deferred loan obligations are accurately reflected in underwriting Assurance that adverse actions are supported by reasonable procedures, meaningful human review, and timely notice as required by the FCRA Sincerely, XXXX XXXX XXXX, Michigan XXXX 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