Consumer complaint received 2023-07-22 00:00:00
Product: Credit card or prepaid card — Store credit card
Issue: Problem when making payments — Problem during payment process
Company: SYNCHRONY FINANCIAL
State: FL

Complaint narrative:
I have an Amazon Prime Store Card managed by Synchrony Bank. On XX/XX/2023, I called Synchrony Bank on a recorded line because I noticed that there were XXXX charges on my account from XX/XX/2023 totaling {$150.00} that I did not want charged onto my Amazon Prime Store Card. Unknown to me at the time, my Amazon Prime Store Card was set up as my default payment method on Amazon -- a setting I have changed since then. 

The reason I did not want to use my Amazon Prime Store Card for the charges on XX/XX/XXXX is because they would be considered " non-promotional '' balances subject to an APR north of 27 %. 

In my call to Synchrony Bank on XX/XX/XXXX I made it clear to the representative that I did not want to accrue any interest on the XX/XX/XXXX charges, and offered to make a payment of {$150.00} specifically to cover the non-promotional balance. The rep indicated that if it was my intention to pay off the non-promotional balance, it would be best for me to wait until XX/XX/XXXX. The reason is I had an auto-payment of {$100.00} also coming due on XX/XX/XXXX, and if I made the additional payment early, it would cancel my auto-payment. Specifically, the rep instructed me to wait until my auto-payment of {$100.00} posts and then to call the same day to process the additional payment of {$150.00} to cover the non-promotional balance. 

On XX/XX/2023, I called Synchrony Bank again on a recorded line and processed the aforementioned transaction. The rep I spoke with at the time confirmed that the {$150.00} additional payment I was making would be allocated to the non-promotional balance so I would not be charged any interest going forward. 

After processing the additional payment of {$150.00}, I also opened up a message thread on Synchrony Bank 's Customer Service website to document my intentions in paying off the non-promotional balance. 

Unfortunately, the {$150.00} was not allocated to the non-promotional balance. It was allocated to promotional balances that carried 0 % interest. As a result, every month for the past 4 months, my promotional balances which carried 0 % interest shrank drastically, and my non-promotional balance which carried 27 % + interest remained largely unchanged. This is an abusive practice that ensures customers continue to pay as high an interest rate as possible on as large a non-promotional balance as possible. 

Every month for the past 4 months, I notified Synchrony Bank via the message thread that my non-promotional balance was still open and I was being charged interest. Every month for the past 4 months, Synchrony Bank assures me that they will review their records and that it may take up to 2 billing cycles to resolve the issue.

It has been far longer than 2 billing cycles, and Synchrony Bank has still not resolved this issue. At this stage, Synchrony Bank is telling me that they can not re-allocate the {$150.00} additional payment because I should have provided instructions on how to allocate a payment within 60 days from when the payment was made. I provided Synchrony Bank with clear instructions on a recorded line on how to allocate the {$150.00} at the time I made the payment -- this is well within 60 days from when the payment was made. 

I believe Synchrony Bank is unnecessarily dragging out this issue. From a very early stage, I contacted Synchrony Bank and made my intention to pay off the non-promotional balance very clear. Pursuant to their instructions, I processed an ADDITIONAL AGENT-ASSISTED payment of {$150.00} on XX/XX/2023 specifically to ensure my non-promotional balance is paid off. The fact that my additional payment was taken, but my instructions on how it should be allocated were not honored, is quite frankly, exploitative. 

Against my instructions, they took the additional payment I made and allocated it to balances that do not accrue interest, while leaving balances that accrue interest intact. This is a predatory practice. It ensures even though I make additional payments, I continue to pay as high an interest rate as possible on as large a balance as possible.

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