Consumer complaint received 2025-12-16 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Advertising and marketing, including promotional offers — Confusing or misleading advertising about the credit card
Company: SYNCHRONY FINANCIAL
State: TX

Complaint narrative:
Consumer Financial Protection Bureau ( CFPB ) Complaint Statement Subject : Deceptive and Predatory Practices Related to PayPal XXXX XXXX to PayPal Credit Card I am submitting this complaint to report what I believe are deceptive, unfair, and predatory practices by PayPal related to its transition from the former PayPal XXXX product to the new PayPal Credit Card, which is now required to use PayPal XXXX promotional offers. 

1. Lack of Transparency Regarding Deferred Interest Calculations Under the prior PayPal XXXX system, deferred interest balances and payoff timelines were clearly displayed and relatively easy for consumers to track. Since PayPal transitioned to the new PayPal Credit Card, the statements no longer clearly show deferred interest calculations or deadlines on the PayPal website interface. 

The deferred interest information is now buried deep within the monthly credit card statement and is extremely difficult to locate and interpret. There is no clear summary indicating : Which transactions are subject to deferred interest The exact payoff-by dates The amount of deferred interest that will be applied if the balance is not paid in full This lack of clarity materially impairs a consumers ability to manage their account responsibly and avoid unexpected interest charges. 

2. Inadequate Customer Service and Inability to Confirm Key Terms I contacted PayPal via their customer service phone number to request clarification on my deferred interest balances and payoff deadlines. The representative was unable to tell me when my deferred interest amounts were due and could not confirm basic information that should be readily available to both the consumer and PayPal representatives. 

If PayPals own customer service staff can not explain the terms, deadlines, or calculations associated with deferred interest, it raises serious concerns about transparency and compliance with consumer protection standards. 

3. Improper Application of Credits Resulting in Financial Harm Recently, I had over {$1500.00} in credits applied to my PayPal XXXX account due to a canceled trip. Historically, when items were returned or credits were issued, PayPal XXXX applied those credits directly to the original transaction associated with the charge. 

In this instance, however, PayPal applied the credits to my most recent transactions instead of the original purchase. This had the effect of : Forcing me to pay off the original purchase within a much shorter timeframe Eliminating the intended deferred interest benefit on the newer transactions, which were supposed to have six months of deferred interest Allowing PayPal to effectively protect its newer balances while accelerating repayment on older balances This change in credit application was not clearly disclosed, nor was I given any option to direct how the credit should be applied. 

4. Pattern of Deceptive and Predatory Behavior By obscuring deferred interest details, failing to train representatives to explain critical account terms, and altering how credits are applied in a way that benefits the lender at the expense of the consumer, PayPal is creating a system that is confusing, misleading, and financially harmful. 

Applying credits in a manner that accelerates repayment obligationscontrary to prior practice and reasonable consumer expectationsappears designed to increase the likelihood of interest charges and reduce consumer protections previously associated with PayPal XXXX. 

5. Requested CFPB Review I respectfully request that the CFPB review PayPals practices regarding : Disclosure and transparency of deferred interest calculations Accuracy and accessibility of account information Training and capability of customer service representatives Credit application policies following refunds or canceled transactions Potential violations of consumer protection laws related to unfair, deceptive, or abusive acts or practices ( UDAAP ) I believe these practices warrant regulatory scrutiny to ensure that consumers are treated fairly and provided with clear, accurate, and accessible information regarding their financial obligations. 

Thank you for your attention to this matter.

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