Consumer complaint received 2024-12-22 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Closing your account — Company closed your account
Company: SYNCHRONY FINANCIAL
State: CA

Complaint narrative:
Synchrony Bank closed my CareCredit account, which had only been open for six months. The reason stated in the letter dated XX/XX/year> from the bank is as follows : " Activity on account ( s ) with Synchrony Bank indicative of high risk of failure to pay. '' This statement is false. During the short time I had the account, I used it only a couple of times for small amounts and paid off the entire balances before the due date. 

When I called their support line to inquire about the activity they deemed indicative of high risk, their agents stated that the decision was based on my credit information supplied by XXXX. They instructed me to reach out to XXXX for clarification. 

This claim is also false. During this time, my XXXX credit score increased from XXXX to XXXX. I had no new accounts or inquiries. Additionally, XXXX rates all the key indicators with a high impact on my credit score ( i.e., payment history, credit card use, and derogatory marks ) as excellent. All my accounts are in good standing. 

I requested an investigation into this closure because any activity deemed " risky '' must have been unauthorized, considering my excellent credit history with both the bank and other creditors. 

On XX/XX/year>, I received a letter signed by a Credit Bureau Specialist. The letter stated that, according to their terms, they could close my account at any time and that my payment history may not have necessarily influenced their decision. However, if they are allowed to close accounts without reason, why did they fabricate a false reason, implying that my activities were risky? This is a baseless assertion that they can not substantiate, as all evidence contradicts it. 

The adverse action notice I received was required to comply with the Equal Credit Opportunity Act ( ECOA ). Under this law, the bank must disclose an accurate and specific reason for taking adverse action ( pursuant to 12 CFR 1002.9 ( b ) ( 2 ) and 15 U.S.C. 1691 ( d ) ( 3 ) ). The bank failed to provide an accurate and specific reason, violating this law. Providing a false reason constitutes an unfair and deceptive practice, as well as a poor business practice in general. 

I urge the CFPB to investigate this clear instance of legal noncompliance. Please also consider that CareCredit is not just a credit cardit serves as a vital resource for underprivileged and underinsured individuals like me. Closing such accounts without valid justification can leave people without access to necessary medical treatment, potentially causing harm or forcing them into bankruptcy. This unfair, deceptive, and discriminatory practice exacerbates healthcare inequality in this country, putting individuals at risk of not receiving the care they need. 

Additionally, I am a minority as defined under the Fair Housing and Equal Credit Opportunity Acts ( FECOA ). I believe one of the reasons Synchrony Bank closed my account may be due to my protected characteristics.

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