Consumer complaint received 2024-08-02 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Getting a credit card — Card opened without my consent or knowledge
Company: SYNCHRONY FINANCIAL
State: MA

Complaint narrative:
Formal Complaint of Fraudulent Denial, Unauthorized Activity, Identity Theft, and Deceptive Practices Acct. Ending XXXX ( Alleging Identity Theft ( 18 U.S.C. 1028 ) & Financial Institution Fraud ( 18 U.S.C. 1344 ) ) I am writing to formally lodge a complaint regarding your XX/XX/XXXX, denial of my fraud claim concerning PayPal Credit account ending in XXXX. Your denial not only contradicts the established facts detailed below and the evidence submitted herewith but also violates my consumer rights under the Fair Credit Billing Act ( FCBA ) and the Fair Debt Collection Practices Act ( FDCPA ), while revealing a pattern of deceptive practices, identity theft, and financial institution fraud as defined under 18 U.S.C. 1028, 1029, and 1344. 

Unauthorized Account Activities and Fraudulent Balance Transfer On XX/XX/XXXX, Synchrony Bank unlawfully closed my account ( ending in XXXX ) and opened a new one ( ending in XXXX ) without my consent, transferring a disputed balance of {$2800.00}. This action followed Synchrony 's denial of my fraud claim on XX/XX/XXXX, disregarding the fact that the account ending in XXXX was closed at my request on XX/XX/XXXX, due to fraudulent activity. 

Identity Theft, Computer Fraud, and Wire Fraud This unauthorized account opening and balance transfer constitute identity theft under 18 U.S.C. 1028. Additionally, as PayPal Credit is a digital line of credit and these actions were executed through PayPal 's systems, I assert this also constitutes computer fraud ( 18 U.S.C. 1030 ) and wire fraud ( 18 U.S.C. 1343 ). 

Tacit Admission of Fraud and Circumvention of Consumer Protections The transferred balance includes the fraudulent transactions I disputed, for which I am due a refund exceeding this amount. This unauthorized transfer is a tacit admission of fraud and an attempt to circumvent my rights under the PayPal User Agreement, PayPal Credit Account Agreement, Fair Credit Billing Act ( FCBA ), and Fair Debt Collection Practices Act ( FDCPA ). 

Billing Errors under the Truth in Lending Act ( TILA ) : This action constitutes a billing error as defined in 1026.13 ( a ) of TILA, as it involves : An extension of credit not intended for me. 
A failure to properly identify the extension of credit. 
By acknowledging the fraudulent activity, Synchrony Bank has invalidated any alleged debt associated with these transactions. 
Synchrony Bank 's Unlawful Retaliation, Deceptive Practices, Unresolved Refunds, & Legal Violations : XXXX Timeline of Events and Violations : XX/XX/XXXX : Duplicate billing for a {$530.00} XXXX purchase ( Transaction IDs : XXXX, XXXX ). Violation : 12 CFR 1026.12 ( a ) Identification of Transactions. 
XX/XX/XXXX : Filed dispute with PayPal ( XXXX XXXX ), denied. 
XX/XX/XXXX : XXXX issued partial refund ( {$110.00} ), not reflected on statement. 
XX/XX/XXXX : XXXX XXXX Washington, XXXX approved full refund ( {$410.00} ), not received. 
XXXX XXXX XXXX : PayPal denied claim again, then issued {$530.00} provisional credit. Violation : 12 CFR 1026.12 ( b ) Prompt Posting of Payments and Credits. 
XX/XX/XXXX : Unauthorized {$530.00} promotional financing transaction posted. Violation : 12 CFR 1026.12 - Treatment of Payments. 
XX/XX/XXXX : referenced multiple transactions and denied the dispute, stating that additional documentation from the merchant supported the charges. 
XXXX XXXX : Filed CFPB complaints ( XXXX, XXXX ), notifying Synchrony of FCBA, FCRA, and TILA violations. Synchrony misrepresented provisional credit ( {$530.00}, Transaction ID : XXXX, applied on XX/XX/XXXX ) as a refund. Violation : 12 CFR 1026.13 ( c ) - Procedures if Billing Error Occurred as Asserted. 
XX/XX/XXXX : Synchrony Bank 's CFPB response acknowledged the XX/XX/XXXX credit as provisional, pending investigation. 
XX/XX/XXXX : Periodic statement failed to reflect the provisional credit and the unauthorized XX/XX/XXXX charge remained as a deferred interest promotional charge, despite the alleged resolution of errors with the XX/XX/XXXX XXXX XXXX : PayPal Credit/Synchrony confirmed disputes remained unresolved. 

XXXX Timeline of Events and Violations : XX/XX/XXXX XX/XX/XXXX : Communicated with Synchrony Bank about unreceived notices and unresolved issues. 
XX/XX/XXXX : Statement showed disputed amount of {$2800.00}, with PAYMENT OF AMOUNT IN DISPUTE NOT REQUIRED. 
XX/XX/XXXX : Synchrony Bank reversed {$380.00} in interest charges, admitting errors. 
XX/XX/XXXX : Synchrony Banks internal records reference financial error handling and a full balance dispute. 
XX/XX/XXXX : XXXX confirmed entitlement to a {$530.00} refund. 
XX/XX/XXXX : Synchrony Bank sent a misleading response letter, omitting the ongoing dispute and errors. 
XX/XX/XXXX : Synchrony Bank deceptively offered a credit line increase. 
XX/XX/XXXX : Exercised right to withhold payment under Regulation Z ( 12 CFR XXXX ) due to unresolved fraudulent charges, unauthorized chargebacks, and accrual of fees and interest on disputed amounts. 
XX/XX/XXXX : Sent certified demand letters to Synchrony Bank outlining violations and demanding resolution. 
XX/XX/XXXX : Synchrony Bank reported a {$53.00} past-due balance despite the ongoing dispute and right to withhold payment. 
XX/XX/XXXX : Filed complaints with the CFPB ( XXXX ) and OCC regarding Synchrony Banks practices. 
XX/XX/XXXX : Synchrony Bank closed the account ( ending in XXXX ) in retaliation for invoking consumer rights, falsely reporting it as closed at the consumers request. This retaliatory closure violates the Equal Credit Opportunity Act ( ECOA ) and caused financial hardship by removing access to a {$5800.00} credit line. 
XX/XX/XXXX : Filed an additional CFPB complaint ( XXXX ). 
XX/XX/XXXX : Filed a complaint with the OCC ( XXXX # XXXX ). 
XX/XX/XXXX : Synchrony Bank responded to the CFPB complaint. 
XX/XX/XXXX : Filed complaints with the CFPB ( XXXX ) and XXXX ( XXXX : XXXX ). 
XX/XX/XXXX : Initiated arbitration against PayPal and Synchrony Bank ( XXXX Case No. XXXX ). 
XX/XX/XXXX : Synchrony Banks XXXX response admitted to adjustments but falsely claimed dispute resolution. 
XX/XX/XXXX : Late adjustments acknowledged by the CFPB ( Case XXXX ) violate the Utah Consumer Credit Code ( UCCC ). 

Additional Complaints : FTC : Record Number XXXX ( XX/XX/XXXX PayPal Phishing and Fraud Attempts ), Reportfraud.gov Confirmation XXXX ( XX/XX/XXXX ) Financial Harm, Emotional Distress, and Violations of Consumer Rights : Synchrony Bank 's actions have caused significant financial hardship and emotional distress. Their retaliatory account closure removed access to a {$5800.00} credit line, preventing me from covering legitimate expenses. They failed to issue refunds totaling {$2900.00} for canceled services, as required by the PayPal User Agreement. Their disregard for my consumer rights and misrepresentation of the account closure constitute deceptive and unfair business practices. 
Synchrony Bank 's repeated violations of consumer protection laws, including the FCBA, FDCPA, and ECOA, along with their failure to follow proper procedures for refunds and dispute resolution as outlined in the PayPal User Agreement and their own terms, warrant immediate investigation and remediation. 

XXXX XXXX of Events and Violations : XX/XX/XXXX : Synchrony Bank refunded {$610.00} in late fees and interest but failed to disclose the full extent of adjustments or provide updated statements on the closed account. 
XX/XX/XXXX : Synchrony Bank partially acknowledged errors by removing some delinquencies but did not address missing refunds and unauthorized charges. 
XX/XX/XXXX : Synchrony Bank sent a collection notice for the disputed balance, violating rights under the FCBA. 
XX/XX/XXXX : Sent detailed dispute letter demanding cessation of collections, credit report corrections, and other legal remedies. 
XX/XX/XXXX : Synchrony Bank responded inconsistently, claiming to cease collections while also stating continued billing statements would be sent. 
XX/XX/XXXX : PayPal representative confirmed a single charge reversal but couldn't locate processed refunds, contradicting XXXX and Synchrony 's claims. 
XX/XX/XXXX : Synchrony Bank denied claims and refused to reopen the account. 
XX/XX/XXXX : XXXX updated credit report, noting the dispute but not removing negative reporting, causing a significant XXXXredit score drop due to falsely reported delinquency. 
XX/XX/XXXX : Spoke with XXXX XXXX from Synchrony Bank 's Office of the President. 
XX/XX/XXXX : Sent an email to XXXX XXXX with additional documentation and reiterated demands. 
XX/XX/XXXX : XXXX credit report showed inaccurate late payments and delinquency status. 
XX/XX/XXXX : Filed multiple CRA disputes regarding unauthorized activity and identity fraud. 
XX/XX/XXXX : Synchrony Bank issued a denial letter for the fraud claim, falsely stating the account was open and active. 
XX/XX/XXXX : Synchrony Bank transferred the disputed balance to a new account ( ending in XXXX ) without authorization, constituting identity theft and an attempt to circumvent consumer protections XX/XX/XXXX : Received the denial letter ( dated XX/XX/XXXX ) from Synchrony Bank. This unauthorized transfer invalidates any alleged payment obligations. 
This continued pattern of misconduct by Synchrony Bank demonstrates a blatant disregard for consumer rights and fair business practices. 

Key Points of Misconduct : No Refunds Received : Despite promises and acknowledgments from both XXXX and Synchrony Bank dating back to XX/XX/XXXX, no refunds for the fraudulent transactions totaling {$2900.00} have been processed or credited to my account. This failure to provide refunds for disputed transactions is a clear violation of the FCBA ( 15 U.S.C. 1666 - 1666j ), which outlines timely resolution of billing errors, including refundU.Sm Unauthorized & Duplicate Charges Unreimbursed : The unauthorized transaction reported on XX/XX/XXXX, and subsequent duplicate charges totaling {$1400.00} remain unaddressed and unreimbursed. This constitutes a continued violation of the FCBA ( 15 U.S.C. 1666 ) and may also violate state laws related to fraud and unjust enrichment. 
Time-Barred Collections & False Delinquencies : Synchrony Bank 's reporting of delinquencies from XX/XX/XXXX onwards is a direct violation of the FCBA ( 15 U.S.C. 1666 ) and the FDCPA ( 15 U.S.C. 1692g ). My formal dispute was initiated on XX/XX/XXXX, rendering any subsequent collection attempts and negative credit reporting illegitimate. Furthermore, the bank 's claim to have ceased collections on XX/XX/XXXX, while continuing to report delinquencies, is a deceptive and harmful misrepresentation, potentially violating Regulation F ( 12 CFR Part 1005 ). 
Unsolicited Credit Line Increase Followed by Closure : The unsolicited credit line increase offer in XX/XX/XXXX, followed by the retaliatory closure of my account in XX/XX/XXXX, demonstrates bad faith and a deliberate attempt to manipulate my credit standing. These actions violate the FCBA, TILA, and potentially state laws. The bank 's failure to disclose this closure in their XX/XX/XXXX denial letter is a further violation of the FDCPA ( 15 U.S.C. 1692e ). 
Insufficient Validation, Acknowledged Errors, and Selective Reporting : Synchrony Bank has acknowledged errors in their reporting and account handling, yet they have failed to rectify the full extent of the discrepancies, including the fraudulent transactions and entitled refunds. Their selective credit reporting violates the FCRA 's mandates for accurate and complete information ( 15 U.S.C. 1681i ). Moreover, their continued collection attempts on a disputed and invalid debt, despite acknowledging errors, demonstrate a blatant disregard for consumer protection laws. 
Prohibited Adjustments After Account Closure and Unauthorized Chargebacks : Synchrony Bank 's numerous account and interest reversals after my account was closed are prohibited under 12 CFR 1026.13 and 1005, rendering any claim to the disputed amounts invalid. Furthermore, charging back the full transaction as a new deferred promotional interest charge instead of properly resolving the billing error is a deceptive practice. The remaining debt consists of chargebacks that were incorrectly processed as new, unauthorized purchases, for which I am not liable. 
Violations of the Fair Credit Billing Act ( FCBA ) : Your ongoing collection attempts after my formal FCBA dispute invocation is a clear violation of the law. Violations : FCBA ( 15 U.S.C. 1666 ). 
Violations of the Fair Debt Collection Practices Act ( FDCPA ) : Your collection tactics after the dispute, despite awareness of the time-barred nature of the alleged debt, constitute unlawful harassment and abuse under the FDCPA. Violations : FDCPA ( 15 U.S.C. 1692 et seq. ) Credit Damage : Your actions caused a XXXX drop in my credit score ( documented evidence available ). This constitutes significant harm. Violations : FCRA ( 15 U.S.C. 1681n, 1681o ). 

Willful Misrepresentation, Deceptive Practices, & FCRA Violations : Synchrony Banks actions demonstrate a pattern of deception and violations of the Fair Credit Reporting Act ( FCRA ). 

False Reporting and Inaccurate Account Status : Despite my account ( ending in XXXX ) being closed due to fraud on XX/XX/XXXX, Synchrony Bank falsely reported delinquencies and claimed the account was open and active, contradicting their records and my PayPal Credit dashboard. This violates FCRA 623 ( a ) ( 1 ), which prohibits furnishing inaccurate data to credit bureaus. 
Misleading Payment Obligations : Synchrony Bank repeatedly asserted my responsibility to repay the disputed balance despite the account closure and no payment obligation, violating the FDCPA and demonstrating deceptive practices to coerce payment on an invalid debt. 
Multiple Account Closures & Conflicting Information : The banks contradictory actions regarding account closures, claiming to have replaced a closed account, create confusion and indicate deceptive practices. 
Willful and Knowing Violations : Internal documents from XX/XX/XXXX, confirm Synchrony Banks knowledge of ongoing errors and unresolved disputes. Despite this, they continued furnishing inaccurate information and engaging in deceptive practices, violating FCRA 623 ( a ) ( 1 ) ( A ) & ( B ).

These deliberate misrepresentations highlight Synchrony Banks disregard for accurate credit reporting and their intent to deceive. I demand an immediate investigation, correction of all inaccurate reporting, removal of fraudulent accounts, and cessation of collection efforts. 

Specific Violations & Contradictory Denial : 1. Unauthorized Account Closure & Transfer : Synchrony Bank 's closure of account XXXX ( due to fraud on XX/XX/XXXX ) and unauthorized opening/transfer to a new account ( XXXX ) constitute flagrant violations of my consumer rights under the FCBA and ECOA. 
XXXX. Lack of Notification & Consent : Failure to notify me of these actions violates industry standards and consumer protection laws. 
XXXX. Erroneous & Fraudulent Balance Transfer : The transfer of the disputed balance, including fraudulent transactions, perpetuates the fraud and attempts to hold me liable for disputed charges. 
XXXX. Misleading Denial & False Representations : The XX/XX/XXXX denial letter falsely claimed the account was open and active, contradicting documented closure due to fraud. The assertion of authorized transactions and a new account agreement is a blatant misrepresentation. 
5. FCBA Rights Violation : Synchrony Bank ignored my XX/XX/XXXX assertion of FCBA rights to dispute and withheld payment, violating the core of the FCBA ( 15 U.S.C. 1666, 1026.12, 1026.13 ). 
6. Synchrony Bank 's FDCPA & UDAP Violations, and FCRA Violations : 7. Synchrony Bank engaged in deceptive and unfair practices, violating the FDCPA, potentially UDAAP, and the FCRA : 8. False Representation of Debt : Misrepresented the debt 's character, amount, and legal status ( 15 U.S.C. 807 ( 2 ) ( A ) ). 
9. Misleading Communication : Used false/misleading representations in communications ( 15 U.S.C. 807 ( 10 ) ).

10. Unfair Practices : Collected interest and fees on disputed amounts, exceeding FCBA limits ( 15 U.S.C. 808 ( 1 ) ).

11. Communication of False Credit Information : Reported inaccurate information to credit bureaus, harming my creditworthiness ( 15 U.S.C. 623 ( a ) ).

Failure to Conduct a Reasonable Investigation : Failed to investigate disputed delinquencies ( 15 U.S.C. 1681s-2 ( b ) ). 

Additional Evidence of Misconduct : Internal documents confirm Synchrony Bank 's awareness of unresolved disputes since XXXX. 
Delayed disclosures and misleading statements regarding reversals and dispute resolutions. 
Retaliatory account closure under false pretenses, unauthorized account replacement, and transfer of disputed balance. 
Failure to process promised refunds and continued pursuit of unauthorized charges. 
Unauthorized account replacement and conflicting account status, demonstrating deceptive practices and raising security concerns. 
Prohibited adjustments after account closure ( 12 CFR 1026.13 and 1005 ), invalidating claims to disputed amounts. 

Invalidation of Debt, False Reporting, & Credit Harm : Synchrony Bank 's unauthorized account closure and balance transfer invalidate any claim to the disputed amount. Their actions during arbitration, misrepresenting facts and falsely reporting delinquencies, demonstrate bad faith and deceptive practices. These actions, contradicting the arbitrator 's decision, confirm the legitimacy of my initial dispute. 
Synchrony Bank 's unlawful practices have caused substantial financial harm, including a documented loss of nearly {$25000.00} in available credit. I demand immediate cessation of collection activity, correction of inaccurate reporting, and compensation for the financial harm suffered. 

Synchrony Bank 's Refusal to Reopen Account & Subsequent Contradictory Actions : Despite my repeated requests, Synchrony Bank refused to reopen the closed account ( ending in XXXX ) to address the fraud and repair my credit. However, they then opened a new account ( ending in XXXX ) without authorization and transferred the disputed balance, contradicting their previous stance. This unauthorized action, while claiming to be a replacement, serves no purpose as the new account also appears closed. This contradictory behavior raises concerns about Synchrony Bank 's motives and good faith, highlighting their prioritization of financial interests over consumer protection.

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