Consumer complaint received 2021-06-07 00:00:00
Product: Credit card or prepaid card — General-purpose credit card or charge card
Issue: Fees or interest — Problem with fees
Company: SYNCHRONY FINANCIAL
State: MI

Complaint narrative:
I have a Banana Republic Black card through Synchrony Bank. I have had this account for many years and have never once made a late payment. 

In XX/XX/XXXX I made two separate payments on my credit card account, each for {$100.00}. One payment was debited from my checking account on XXXX and the second was debited on XX/XX/XXXX. Both before the XX/XX/XXXX due date. My minimum payment for XXXX was {$140.00}. 

In XX/XX/XXXX I received a statement that indicated I was being charged a {$40.00} late fee for my XXXX payment despite the fact that I paid over the minimum payment due, all before the due date. I did not initially notice this late fee since I often automatically just send payments throughout the month. 

In XX/XX/XXXX I made a {$200.00} payment that was debited from my checking account on XXXX. The minimum payment due was {$75.00} and the payment due date was XX/XX/XXXX. 

In XX/XX/XXXXof 2021 I received another statement that indicated I was being charged another {$40.00} late fee. This time for my on-time XXXX payment. Again, despite the fact that I paid over the minimum payment due and all well before the due date. This unexplainable late fee caused me to do a look-back over my account to see if there had been any others. This was when I noticed the late fee on the XXXX statement. 

On XX/XX/XXXX I contacted Synchrony Bank to inquire as to why I was being charged these late fees when I was obviously making regular on-time payments. I was informed first by a customer service rep named XXXX that because my payments were made before the statement was generated that they were credited as a balance reduction and not a payment. After complaining as to the deception of this practice I was transfered, once to a gentleman who's name I did not hear who eventually reversed my XXXX late fee, and a second time to an account manager named XXXX who revered my XXXX late fee. 

While I personally may have been made whole, this practice is entirely deceptive and unfair to the average consumer. I've worked in banking for over 20 years and I know that if a financial institution tried to pull this sort of bait and switch on receiving loan payments and then when caught simply shrugged and pointed to " the fine print '' we would rightfully be cited for a UDAP violation. Why would a customer that has never once been late, makes frequent payments, all prior to the due date each month, be penalized for being proactive? 

I don't know how this practice can meet the requirements of the Truth in Lending Act, UDAP, or The Credit Card Accountability Responsibility and Disclosure Act as it's far from " fair and transparent ''. Not to mention, how is a {$40.00} late fee " reasonable and proportional ''? 

This just seems like blatant attempt to run up fees on consumers. I would liken it to the many financial institutions that used to have the practice of running debits before credits just to hit customers for overdraft fees.

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