Consumer complaint received 2024-04-17 00:00:00
Product: Credit card — Store credit card
Issue: Fees or interest — Charged too much interest
Company: SYNCHRONY FINANCIAL
State: VA

Complaint narrative:
I'm extremely frustrated because Synchrony 's practices constitute an unfair or deceptive act or practice to consumers ( myself and similarly situated ). 

I opened a Synchrony Home Design credit card for a purchase related to our new home in XXXX, XXXX. That account was paid in full in XXXX, XXXX  - well before the end of the XXXX month promotional period. The promotion offered was deferred interest ( 0  % ) during the XXXX month promotional period. Imagine my surprise when I received a bill for {$5.00} at the beginning of XXXX. Since I was on 0 % and paid off within the promotional period, I went to look at my recent transactions and found that Synchrony had been charging a minimum interest charge of {$2.00} plus " interest charge on purchases '' since about XXXX of XXXX. ( I was unable to pull transactions prior to XXXX, and my statements won't download off their mobile app either. ) Although the {$2.00} minimum interest charge is disclosed when you go and look up the Consumer Credit Card Agreement on the CFPB webpage, it is not something a consumer on a 0 % deferred interest plan is likely to ask about when completing an application for credit by phone after being told the first XXXX months are at 0 %. 

Not only that, but it turns out that the interest charges are being assessed on fees - fees that are already high ( up to {$41.00} ). So for the month of XXXX, even though the account was paid in full, I was charged a total of {$5.00} in interest between the minimum interest charge and the interest being charged on fees. We had no intention of paying this account off beyond XXXX months, so I don't recall whether the " go to '' rate was disclosed in the application process. 

In addition, which would/should ordinarily be helpful, any late fee is included in the minimum periodic payment due, which an ordinary consumer would believe would take care of the fee so that interest would not be charged. Apparently, that is not the case and interest is being charged anyway. When I asked about the application of grace to the account, the answer provided by the representative didn't actually answer the question. It's almost like Synchrony is applying interest immediately ( like a Cash Advance ) since there is an outstanding promotional balance on the account. Is that what's happening? My question wasn't answered. 

So in a nutshell, the practice of opening accounts by phone without proper disclosure, including disclosing that apparently Synchrony treats fees the same as a " purchase '' ( which is not intuitive ) on an account that's being SOLD as a 0 % promotional account that is paid off within the promotional period and nonetheless winding up with surprise interest after the account is presumably paid in full is something the CFPB should look into as a UDAP. I strongly suggest looking at the sales practices for account opening and whether disclosure requirements related to timing and format are adhered to because, in my experience, they were not. I can afford the interest charges to my account, but I'm angry for other consumers that may not be able to afford those charges. Charging minimum interest charges on minute balances is unfair. Not allowing a customer to make a payment for more than the minimum due to prevent trailing interest is unfair. The practices in this instance were unfair - my account should be closed with a {$0.00} balance and I shouldn't have to be dealing with trailing interest. 

On top of all this, the system won't allow you to submit a payment for more than the account balance, even though there is trailing interest accruing on an account that's already accruing interest. So, I couldn't make an additional {$2.00} payment to avoid the minimum interest charge likely to hit me next cycle. That is beyond frustrating as well. It's like there is no end to this process. I'd rather pay an extra {$2.00} so the balance is really {$0.00}. Just watch me still be trying to chase down this minimum interest charge and wind up getting hit with all of the deferred interest due to unfair business practices. I'm beyond frustrated. My account should not be past due and accruing interest right now. Unbelievable. 

In summary : 1 ) Look at Synchrony 's sales practices. There is something wrong. 
2 ) Look at Synchrony 's interest charge practices. Late fees are not purchases. A {$2.00} minimum interest charge on a {$3.00} INTEREST balance is unfair. 
3 ) Look at Synchrony 's payment practices. Preventing a consumer from making a payment {$2.00} higher than the current {$5.00} to prevent trailing interest is unfair.

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