Consumer complaint received 2025-04-15 00:00:00
Product: Debt collection — Credit card debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: SYNCHRONY FINANCIAL
State: PA

Complaint narrative:
Subject : Urgent Complaint Regarding Improper Collection of Account Without Issuance of 1099-C Complaint : I am filing an urgent complaint regarding the continued collection and reporting of a consumer debt account that originated with Synchrony Bank XXXX also displayed as XXXX Synchrony Bank on certain credit reports, and is now being pursued by XXXX XXXX XXXX XXXX XXXX 

This account was opened on XX/XX/year>, and my credit report shows a balance of {$3000.00} with a listed highest balance of the same amount. However, on at least one credit reporting platform ( XXXX via XXXX XXXX, the account is showing a negative balance of - {$3000.00} which makes no sense and raises serious concerns about the accuracy and validity of the information being reported. A negative balance would typically indicate a credit or refund, not an amount owed, which directly contradicts its collection status. 

This account is currently being reported as a collection, yet I have never received a 1099-C from the original creditor, Synchrony Bank , a.k.a., XXXX Synchrony Bank , despite the account being transferred and no longer appearing as an active obligation with them. 

According to IRS regulations, a 1099-C is generally required when a debt over {$600.00} is canceled, forgiven, or otherwise deemed uncollectible. Although this debt is being pursued in collections, the reporting and transfer of ownership suggest that the original creditor may have either charged off or sold the debt. If so, the absence of a 1099-C raises serious concerns about the legal and tax handling of this debt. 

Furthermore, if Synchrony Bank, a.k.a., XXXX Synchrony Bank, profited from the transfer or sale of this account, it is questionable whether further collection is even lawful particularly if they already received a financial benefit through a tax write-off or sale proceeds. This creates the risk of double-dipping, where the original creditor benefits financially and yet the debt is still treated as collectible without proper IRS reporting or disclosure to me as the consumer. 

This issue raises both tax compliance and consumer protection concerns. No debt should continue to be collected or reported without clear evidence that it remains valid, legally collectible, and properly documented including proof that no tax benefit, cancellation, or sale invalidated its status. 

The ongoing collection activity is not only questionable, but it is also actively harming my credit standing and interfering with my ability to obtain critical business financing. 
Requested Resolution : I request that all collection activity on this account be immediately halted, and that the account be removed from all credit reporting databases. If XXXX XXXX XXXX or Synchrony Bank, a.k.a., XXXX Synchrony Bank, can not provide valid documentation confirming that the debt is still legally collectible and that no tax benefit or cancellation has occurred then the account must be considered resolved and withdrawn from all records and collection efforts. 

Thank you for your immediate attention to this critical 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