Consumer complaint received 2025-01-02 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Fees or interest — Charged too much interest
Company: SYNCHRONY FINANCIAL
State: CA

Complaint narrative:
This complaint concerns the allocation problems of PayPal Credit, a company owned by Synchrony Bank, a subsidiary of Synchrony Financial. To wit : On XX/XX/XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX from a private seller, in the amount of {$1700.00} plus sales tax and shipping, totaling {$1800.00}. The purchase was financed through PayPal Credit, with the promotional option of 6 months deferred interest if paid in full. Since I have a credit line of over XXXX on PayPal Credit, I also have several other charges with the same promotional deferred interest on my account. A few days later, I received a telephone call from XXXX XXXX authentication service, stating that parts of the bag were not as described and was advised to cancel the sale. The seller had not yet been contacted, and there was no timeframe or explanation as to the seller 's willingness to extend a refund. I canceled the purchase immediately, and disputed the payment through PayPal credit. The amount of {$1800.00} was refunded to me within a day 's notice. 

On XX/XX/XXXX, the seller provided a refund to my PayPal credit account. This meant that I had been refunded twice. Under normal circumstances, PayPal Credit would simply rebill the excess dollar amount to my account ; instead, PayPal Credit exercised the unexpected action of PAYING OFF all my active promotional 6 month deferred charges, and subsequently demanded {$1800.00} from me within 25 days, in order to " avoid interest '' on the entire amount. Instead of being able to successively pay off the charges within their own time limits, I was required to pay the entire balance to avoid any interest, thus invalidating the promise of 6 months deferred interest on the various charges as they would come due. I immediately complained to PayPal Credit, and stated that XXXX out my promotional charges while demanding that I pay back {$1800.00} was illegal, and that this allocation error needed to be rectified. 

I spoke to XXXX XXXX XXXX with the employee ID XXXX XXXX XXXXXX/XX/XXXX. He confirmed that " the system made an allocation error, '' and that this would take up to 2 billing cycles to correct. To ensure that corrective action had been initiated, I again telephoned PayPal Credit on XX/XX/XXXX. I spoke with XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX who confirmed that action had been taken, and that it would take up to 2 billing cycles to correct. 

On XX/XX/XXXX, I received a letter from PayPal Credit, informing me that I had initated " a dispute '' concerning the matter, and that while my " dispute '' was being investigated, I would not be responsible for {$1800.00}. No admission of wrongdoing or even attempt to correct the grave allocation error was provided- instead, the responsibility fell on me to have " initiated a dispute for the amount, '' which is not only wrong, but also removes any responsibility to adjust the error on the part of PayPal Credit. 

I have paid {$400.00} on XXXX XXXX XXXX XXXX as planned, and plan to pay off all the scheduled charges as they have been recorded on their original purchase dates with their original promotional conditions. 

I am hereby reporting this action for CFPB to help with this matter. 

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