Consumer complaint received 2025-11-03 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: CA

Complaint narrative:
CFPB, I am submitting this complaint regarding PayPal Credit, operated by Synchrony Bank, due to a continuing and deeply concerning pattern of unfair and arbitrary credit denials. Despite my ongoing and proactive efforts to build and maintain a solid financial profile, PayPal Credit has repeatedly denied my applications without providing clear reasoning, transparency, or a meaningful opportunity for reconsideration.

Over time, I have applied to PayPal Credit under circumstances where I met or exceeded typical qualifications advertised by the company. I have demonstrated steady income, consistent repayment history with other creditors, and ongoing efforts to strengthen my credit profile. Yet, PayPal Credit has never granted me a single opportunity to establish a relationship with them, even though they claim to offer credit options for a wide range of consumers, including those actively rebuilding their credit.

These repeated denials have been disheartening, discouraging, and unfair, especially given the lack of transparency about what specific criteria or factors are being used to reject my applications. The situation is not only frustratingit raises serious concerns about compliance with the Equal Credit Opportunity Act ( ECOA ) and CFPB fair lending standards.

Concerns Regarding Fairness and Potential Discrimination In reviewing the ongoing pattern of denials, I have grown increasingly concerned that my race and other personal characteristics may have played a role in these decisions. I am aware that under federal law, creditors are prohibited from discriminating against applicants on the basis of race, color, national origin, sex, marital status, or age. However, given the persistent and unexplained nature of these denialsand the fact that similarly situated consumers appear to receive approvalsI believe there may be a potential disparate impact or bias embedded in PayPal Credits credit evaluation system or internal algorithms.

If this is the case, it would represent a serious violation of federal fair lending laws, and it would warrant immediate investigation and corrective action. It is not enough for a company to issue generic denial letters that provide no substantive reasoning, while maintaining opaque internal practices that could be resulting in unintentional but unlawful discrimination.

Consumers, including myself, deserve to be treated with fairness, dignity, and equality when applying for financial products. Repeatedly being shut out without explanationespecially when ones financial profile meets general lending standardsundermines trust in both the company and the integrity of the credit system itself. Transparency and Accountability Issues Another major issue is PayPal Credits lack of transparency regarding its decision-making process. Their
adverse action notices are vague and provide no meaningful guidance for consumers seeking to improve or understand their creditworthiness. This creates a cycle where applicants are left in the dark, unable to take corrective steps or appeal a decision that feels arbitrary.

Such a lack of transparency contradicts the principles of fair lending and responsible consumer credit practices. A company that operates under a large and well-known financial brand like PayPal has an obligation to ensure its credit decision systems are transparent, equitable, and free of any discriminatory influence.

Request for CFPB Action and Investigation I am respectfully requesting that the Consumer Financial Protection Bureau conduct a full investigation into PayPal Credits credit evaluation and decision-making practices. Specifically, I urge the CFPB to examine : 1. Whether PayPal Credit and Synchrony Bank are using automated systems or algorithms that produce disparate impacts on applicants of certain racial or ethnic backgrounds.

2. Whether the companys credit scoring criteria are consistent, fair, and compliant with ECOA and CFPB fair lending regulations.

3. Whether consumers are being provided with sufficient disclosure and transparency regarding the specific reasons for denial, as required under the Fair Credit Reporting Act ( FCRA ).

4. Whether PayPal Credits advertising and public representations about accessibility to credit align with their actual approval patterns and internal lending behavior.

If the Bureau finds evidence that these practices are discriminatory, inconsistent, or deceptive, I request that appropriate enforcement measures be taken, including but not limited to supervisory action, civil penalties, and mandatory policy reforms to ensure that all consumers are evaluated fairly.

Personal Impact These repeated denials have caused unnecessary stress and frustration. I have worked diligently to manage my finances responsibly and maintain good standing with other creditors. Being repeatedly denied by PayPal Credit, without clear explanation or an opportunity for appeal, has not only limited my financial options but has also undermined my confidence in the fairness of major financial institutions.

When a large financial entity like PayPal continues to deny credit without explanationwhile presenting itself publicly as inclusive and supportive of consumer growthit sends a message that some applicants are simply not welcome, no matter their progress or intent. That is unacceptable and inconsistent with the principles that the CFPB enforces.

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