Consumer complaint received 2025-08-06 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Charged fees or interest you didn't expect — 
Company: SYNCHRONY FINANCIAL
State: TN

Complaint narrative:
I am filing a complaint regarding a loan I took through Ally Lending for services purchased at XXXX, totaling approximately {$4900.00}. I agreed to finance the amount on XX/XX/XXXX, based on the understanding that no interest would be applied, provided the principal was paid off within a XXXX promotional period. 

However, I later discovered that an interest rate of 26.88 % APR was applied from the very beginning of the loan, and would only be waived retroactively if the principal was paid off by the promotional deadline ( XX/XX/XXXX ). This critical detail was not communicated to me at the time of the loan agreement, and I believed no interest would accrue during the promotional period. 

Throughout the loan period, I received multiple reminders via email, call, and text about my monthly payments. However, I was never notified about the approaching promotional period deadline or the consequences of missing it. No interest amount was ever mentioned in these communications. 

Furthermore, I was not provided with any loan documents at the time of agreement, so I had no written record or breakdown of how the interest would work or what I was ultimately paying. I was blinded by the principal amount and assumed I was making payments toward it without any accruing interest. Had I known that the promotional period was ending, I would have paid off the principal amount in full before the deadline. 

Due to unemployment and personal/financial hardship over the last XXXX years, I lost track of the deadline. Once the promotional period expired, I was shocked to find that monthly interest charges of around {$100.00} were being added. When I contacted Ally Lending on XX/XX/XXXX, I was informed that the 26.88 % interest ( totaling approximately {$4000.00} ) had been applied since day XXXX and was only being deferred during the promotional period. 

Upon learning this, I immediately paid off the entire principal balance and contacted Ally Lending to explain my situation. I requested that the accrued interest be waived or adjusted due to the lack of communication, missing documentation, and financial hardship, but my request was repeatedly denied. 

Additionally, after XX/XX/XXXX, my account was transferred to Synchrony Pay Later, which is now servicing the loan. I was not informed in a timely or transparent way about this transfer, which further delayed my understanding and ability to act on the loan situation. 

I am not in a financial position to pay the added interest amount of nearly {$4000.00}. I am requesting the CFPB to investigate this case for : Lack of transparent communication about the interest structure and terms. 
Failure to notify about the promotional deadline or consequences. 
Inadequate documentation and a lack of loan agreement copies at the time of the loan. 
Unfair lending practice of applying deferred interest from the start. 
Lack of clear notice regarding the transfer of servicing to Synchrony Pay Later, and A potential waiver or reduction of the accrued interest, considering I paid off the principal as soon as I became aware and was navigating financial and personal hardship. 

Thank you for your time and assistance in helping me resolve this issue.

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