Consumer complaint received 2023-12-12 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem when making payments — Problem during payment process
Company: SYNCHRONY FINANCIAL
State: AZ

Complaint narrative:
Dear Sir/Madam, I am writing to officially file a complaint with the Consumer Financial Protection Bureau ( CFPB ) concerning a serious matter involving PayPal Credit , which is serviced by Synchrony Financial. The issue at hand raises significant concerns regarding potential violations of the Uniform Commercial Code ( UCC ), Securities and Exchange Commission ( SEC ) regulations, Financial Industry Regulatory Authority ( FINRA ) regulations, and alleged securities fraud.

The details of my complaint are as follows : Payment Instrument Submitted : On XX/XX/2023, I submitted a negotiable instrument for payment to PayPal Credit in full compliance with legal tender guidelines. The instrument was restrictively endorsed to the company and sent registered mail XXXX XXXX XXXX, accompanied by specific processing instructions, as prescribed by 31 CFR 328.5-6. 
Company 's Response and Actions : Regrettably, PayPal Credit has neither applied the payment to the account nor returned the negotiable instrument, which is mandated by law. Furthermore, the company has continued to contact me for payment despite my attempts to rectify the situation.

Adverse Action on Consumer Credit : Adding to my concerns, PayPal Credit has taken adverse action against my consumer credit, which, based on my understanding of applicable laws and regulations, they may not have the authority to do. 
UCC Title 3 Violation : In accordance with the Uniform Commercial Code, Title 3, the non-application of payment in a timely manner constitutes a breach of contract. Consequently, the debt should be considered discharged, and my consumer credit should have been updated to reflect " paid as agreed. '' Allegations of Securities Fraud : I suspect that PayPal Credit may have improperly retained the security interest for themselves, potentially giving rise to allegations of securities fraud. Such actions, if proven true, raise significant concerns about the company 's ethical conduct and compliance with federal regulations and securities laws. 
Given the gravity of this situation and the potential violations of consumer protection laws, federal regulations, and securities laws, I believe it is imperative that other relevant regulatory bodies be involved in investigating and addressing this matter. Specifically, the Federal Trade Commission ( FTC ), Securities and Exchange Commission ( SEC ), Financial Industry Regulatory Authority ( FINRA ), and Internal Revenue Service ( IRS ) may need to take action to ensure that consumer rights are safeguarded and any alleged misconduct is thoroughly examined.

Despite my attempts to communicate with PayPal Credit and my requests for the application of payment or the return of the instrument, the company has not responded or addressed this matter as of the date of this complaint. 

I respectfully request that the CFPB initiates a comprehensive investigation into this matter involving PayPal Credit XXXX Synchrony Financial XXXX to determine whether the company has violated any federal regulations, consumer protection laws, or securities laws. Additionally, I urge the CFPB to collaborate with the aforementioned regulatory bodies, including the FTC, SEC, FINRA, and IRS, to ensure a thorough examination of this matter.

Thank you for your prompt attention to this serious issue, and I anticipate a timely resolution to protect consumer rights. 

Sincerely, 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