Consumer complaint received 2025-11-01 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Other problem
Company: SYNCHRONY FINANCIAL
State: NC

Complaint narrative:
I am filing this complaint regarding my PayPal Credit account issued by Synchrony Bank ( Account : XXXX XXXX ). 

My account was closed on or around XX/XX/year>, without warning, despite over 10 years of responsible history and multiple large lump-sum payments that brought my balance to {$0.00} on more than one occasion. 

I experienced a temporary medical hardship due to a XXXX XXXX XXXX that reduced my work hours. Despite this, I continued to make payments, including a {$360.00} good-faith payment on XX/XX/year>, made during the 90-day period before the closure. Even with this proactive payment and my communication with Synchrony about my hardship, the account was still closed and improper late fees, excessive fees, and excessive interest continued to be assessed. 

There are multiple issues of mismanagement by Synchrony, including : Misapplied payments that did not reflect accurately Excessive fees and inflated minimum payment amounts Excessive interest charges Late reporting to the credit bureaus that is not accurate These actions made it impossible to correct the account and caused harm to my credit. 

Important : I mailed a formal Pre-Arbitration Notice to Synchrony Bank on XX/XX/year>, via certified mail to the correct address listed in the cardholder agreement : Synchrony Bank, Legal Operation, XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX tracking shows the item arrived at their post office and received multiple pick-up notices, but Synchrony failed to pick up their mail, preventing my legal notice from being received. This is not my fault, and it financially burdens me to repeatedly re-mail notices when Synchrony refuses to retrieve their certified mail. 

Because the pre-arbitration period has now run without response due to Synchronys failure to collect their mail, I will be mailing my Arbitration Demand on XX/XX/year>. 

Since the account is now closed, I have not made additional payments because the minimum payment due is incorrect, inflated, and not based on accurate balances, fees, or interest calculations. Any further payment would be based on false information. 

Synchrony Bank and PayPal Credit have a documented history of violations involving misapplied payments, excessive fees, unfair billing practices, and improper credit reporting as referenced by prior CFPB enforcement actions and I believe similar misconduct has occurred with my account.

Resolution Requested : I am requesting CFPB assistance to ensure that Synchrony Bank/PayPal : 1. Conducts a full account review and corrects all errors, including misapplied payments, inflated balances, excessive fees, and improper interest charges.

2. Removes any late payments or derogatory reporting that resulted from Synchronys errors or mismanagement.

3. Flags the account as in dispute with all credit bureaus while under review.

4. Stops reporting late payments on a closed account.

5. Provides a written response and resolution.

If the account is not corrected and resolved, and because I attempted pre-arbitration in good faith, I will proceed with arbitration on XX/XX/year>.

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