Consumer complaint received 2024-10-18 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Credit inquiries on your report that you don't recognize
Company: SYNCHRONY FINANCIAL
State: VA

Complaint narrative:
On XX/XX/XXXX I went to Discount Tire website to see the deals they were offering their customers. They offered a finance deal of no interest for 6 months if you applied for their credit card. There is a button on the website that says you can see if you prequalify for the credit card with " ..no impact to your credit score '' in bold letters. This leads me to believe they will not pull a hard inquiry on your credit to receive the credit card. Within seconds of me submitting the application I got an approval in my inbox for the credit card. About a month later I see that my credit score was negatively impacted because an inquiry had been made on my credit by Synchrony Bank. This surprised me because of the advertisement of receiving the credit card says, no impact to your credit score. '' When I talk with XXXX from the bank she told me I would have to file a dispute with the credit bureau and they would send it to the bank and they would decide what they would do from there. When I called the credit bureau they told me there was nothing they could do because they needed a removal letter from the bank. When I called the bank again and talked with XXXX she told me they could not issue me a removal letter because you can not remove an inquiry from a credit score. The way that the bank is receiving customers is misleading. It is a bait and switch. especially when you receive notification in seconds you have the credit card. You find out after the fact that they indeed pulled a hard inquiry on your credit which did negatively impacted your credit score. How are customers to make informed decision with this bad business practice? I would NEVER applied for the credit card had I known they would do a hard inquiry on my credit. I would have sought other means and the bank would have lost a customers. Unfair. This is a gotcha! The account agreement says nothing about a hard inquiry was done on your credit. This is lack of transparency to get customers. That is not fair business practice. Anything you do on the front end to entice customers you need to be fair and clear with the bold letters on the back end to let them know it may impact their credit score. Otherwise, it is like a bait and switch. Additionally the attached terms is not the terms they sent me in the mail. They could not say specifically what section in the terms say a hard inquiry will be done that may impact you credit score.

This is clearly a case of Synchrony enticing customers to do business with them by telling customers in bold letters to get customers attention it will not impact you credit score and within seconds they tell customers they re approved. There is no cooling down period because most customers, as I, are searching for deals. Since they tell customers in the process in bold letters to get their attention to prequalify no impact to you credit score, I contend they need to, in turn, in bold letters let customers know if you accept the credit card it may impact your credit score with a hard inquiry. That is reasonable and fair to the customer.

I also contend this marketing tactic is a way for Synchrony to increase their business. They already know if customers did not see those bold words enticing them to try and prequalify they would know, as was told to me by the representative. Therefore, they would not get their business. That is the purpose for them doing all of this.

I believe their business practice and strategy needs to change in this case. They need to be upfront with their customers to let them know in bold letters accepting the credit card may impact their credit. Just like they are enticing customers up front to prequalify and it will not impact their credit score. This will give customers the time to pause and think do I really want to take the next step of accepting this card if it will impact my credit score. I believe most customers would not accept the credit card, thus causing Synchrony to lose business which is what they do not want. 

The above was reported to BBB. Synchrony refused to issue a letter of removal or change their business practice. This is my response to them in XXXX... 
I reject Synchronys findings. Unfortunately they presented no new information to me that the representatives shared with me on the phone when I first discovered Synchrony had in fact did a hard inquiry on my credit that did impact my credit score. The mere fact I am bringing this to their attention should let them know I was caught off guard and did not realize a hard inquiry was going to take place because of the speed it took to approve me and nothing in bold to indicate one would be done. That is not fair business practice. Anything you do on the front end to entice customers you need to be fair and clear with the bold letters on the back end to let them know it may impact their credit score. Otherwise, it is like a bait and switch. Additionally the attached terms is not the terms they sent me in the mail. They could not say specifically what section in the terms say a hard inquiry will be done that may impact you credit score.

This is clearly a case of Synchrony enticing customers to do business with them by telling customers in bold letters to get customers attention it will not impact you credit score and within seconds they tell customers they re approved. There is no cooling down period because most customers, as I, are searching for deals. Since they tell customers in the process in bold letters to get their attention to prequalify no impact to your credit score, I contend they need to, in turn, in bold letters let customers know if you accept the credit card it may impact your credit score. That is reasonable and fair to the customer.

I also contend this marketing tactic is a way for Synchrony to increase their business. They already know if customers did not see those bold words enticing them to try and prequalify they would not know, as was told to me by the representative. Therefore, they would not get their business. That is the purpose for them doing all of this.

I believe their business practice and strategy needs to change in this case. They need to be upfront with their customers to let them know in bold letters accepting the credit card may impact their credit. Just like they are enticing customers up front to prequalify and it will not impact their credit score. This will give customers the time to pause and think do I really want to take the next step of accepting this card if it will impact my credit score. I believe most customers would not accept the credit card, thus causing Synchrony to lose business which is what they do not want. Thank you.

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