Consumer complaint received 2024-10-04 00:00:00
Product: Debt collection — Credit card debt
Issue: Attempts to collect debt not owed — Debt was result of identity theft
Company: SYNCHRONY FINANCIAL
State: MI

Complaint narrative:
I, XXXX XXXX am a victim of identity theft, and I am being fraudulently contacted by XXXX and XXXX, XXXX File Number : XXXX, in regards to a fraudulent debt that's trying to be collected in ways that are in violation of the Federal Debt Collection Practices Act.The original creditor for the alleged debt is XXXX XXXX, the alleged brand name : Care Credit, Account numberXXXX. XXXX and XXXX XXXX XXXX Is illegally trying to collect a debt when the debt is due to identity theft. I demand for this balance that is allegedly owed to be cleared and removed from all records. 
XXXX XXXX, XXXX XXXX, XXXX XXXX XXXX, XXXX XXXX, XXXX XXXX and XXXX XXXX XXXX XXXX XXXX have failed to assure maximum possible accuracy when preparing my consumer report. XXXX XXXX XXXX XXXX ( b ). 

The consumer was not given an opportunity to direct that his social security number and other personally identifiable financial information not be disclosed. 15 U.S. Code 6802. 
XXXX XXXX XXXX ; Shared the consumers personally identifiable financial information without statutorily required notice. 15 U.S. Code 6801.

The consumer was not given an opportunity to direct that his social security number and other personally identifiable financial information not be disclosed. 15 U.S. Code 6802. 
XXXX XXXX XXXX ; XXXX XXXX XXXX and XXXX XXXX XXXX, XXXX to oppress the consumer for the nonpayment of an alleged extension of credit. 18 U.S. Code 894.

15 U.S. Code 1681 ( a ) ( b ) Congressional findings and statement of purpose The Congress makes the following findings : ( a ) Accuracy and fairness of credit reporting ( 1 ) The banking system is dependent upon fair and accurate credit reporting. Inaccurate credit reports directly impair the efficiency of the banking system, and unfair credit reporting methods undermine the public confidence which is essential to the continued functioning of the banking system.

( 2 ) An elaborate mechanism has been developed for investigating and evaluating the credit worthiness, credit standing, credit capacity, character, and general reputation of consumers. ( 3 ) Consumer reporting agencies have assumed a vital role in assembling and evaluating consumer credit and other information on consumers.

( 4 ) There is a need to ensure that consumer reporting agencies exercise their grave responsibilities with fairness, impartiality, and a respect for the consumer 's right to privacy.

( b ) Reasonable procedures It is the purpose of this subchapter to require that consumer reporting agencies adopt reasonable procedures for meeting the needs of commerce for consumer credit, personnel, insurance, and other information in a manner which is fair and equitable to the consumer, with regard to the confidentiality, accuracy, relevancy, and proper utilization of such information in accordance with the requirements of this subchapter.

15 U.S. Code 1681e - Compliance procedures ( b ) Accuracy of report Whenever a consumer reporting agency prepares a consumer report it shall follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates.

15 U.S. Code 1681a ( 2 ) ( i ) - Definitions ; rules of construction ( 2 ) Exclusions. Except as provided in paragraph ( 3 ), the term consumer report does not include ( i ) report containing information solely as to transactions and experiences between the consumer and the person making the report.

15 U.S. Code 1692 ( d ) - Congressional findings and declaration of purpose ( d ) Interstate Commerce Abusive debt collection practices are carried on to a substantial extent in interstate commerce and through means and instrumentalities of such commerce. Even where abusive debt collection practices are purely intrastate in character, they nevertheless directly affect interstate commerce.

15 U.S. Code 6801 - Protection of nonpublic personal information ( a ) Privacy obligation policy It is the policy of the Congress that each financial institution has an affirmative and continuing obligation to respect the privacy of its customers and to protect the security and confidentiality of those customers nonpublic personal information. 
( b ) Financial institutions safeguards In furtherance of the policy in subsection ( a ), each agency or authority described in section 6805 ( a ) of this title, other than the Bureau of Consumer Financial Protection, shall establish appropriate standards for the financial institutions subject to their jurisdiction relating to administrative, technical, and physical safeguards ( 1 ) to insure the security and confidentiality of customer records and information ; ( 2 ) to protect against any anticipated threats or hazards to the security or integrity of such records ; and ( 3 ) to protect against unauthorized access to or use of such records or information which could result in substantial harm or inconvenience to any customer.

15 U.S. Code 6802 - Obligations with respect to disclosures of personal information ( a ) Notice Requirements ( b ) Opt Out ( 1 ) In General A financial institution may not disclose nonpublic personal information to a nonaffiliated third party unless ( A ) such financial institution clearly and conspicuously discloses to the consumer, in writing or in electronic form or other form permitted by the regulations prescribed under section 6804 of this title, that such information may be disclosed to such third party ; B the consumer is given the opportunity, before the time that such information is initially disclosed, to direct that such information not be disclosed to such third party ; and C the consumer is given an explanation of how the consumer can exercise that nondisclosure option.

16 CFR 433.2 - Preservation of consumers ' claims and defenses, unfair or deceptive acts or practices.

433.2 Preservation of consumers ' claims and defenses, unfair or deceptive acts or practices.

In connection with any sale or lease of goods or services to consumers, in or affecting commerce as commerce is defined in the Federal Trade Commission Act, it is an unfair or deceptive act or practice within the meaning of section 5 of that Act for a seller, directly or indirectly, to : ( a ) Take or receive a consumer credit contract which fails to contain the following provision in at least ten point, bold face, type : NOTICE ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER.

or, ( b ) Accept, as full or partial payment for such sale or lease, the proceeds of any purchase money loan ( as purchase money loan is defined herein ), unless any consumer credit contract made in connection with such purchase money loan contains the following provision in at least ten point, bold face, type : NOTICE ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER.

18 U.S. Code 894- Collection of extensions of credit by extortionate means ( a ) Whoever knowingly participates in any way, or conspires to do so, in the use of any extortionate means ( 1 ) to collect or attempt to collect any extension of credit, or ( 2 ) to punish any person for the non repayment thereof, shall be fined under this title or imprisoned not more than 20 years, or both.

( b ) In any prosecution under this section, for the purpose of showing an implicit threat as a means of collection, evidence may be introduced tending to show that one or more extensions of credit by the creditor were, to the knowledge of the person against whom the implicit threat was alleged to have been made, collected or attempted to be collected by extortionate means or that the non repayment thereof was punished by extortionate means.

( c ) In any prosecution under this section, if evidence has been introduced tending to show the existence, at the time the extension of credit in question was made, of the circumstances 18 U.S. Code 1028A ( a ) ( c ) ( 4 ) - Aggravated identity theft ( a ) Offenses.

( 1 ) In general.

Whoever, during and in relation to any felony violation enumerated in subsection ( c ), knowingly transfers, possesses, or uses, without lawful authority, a means of identification of another person shall, in addition to the punishment provided for such felony, be sentenced to a term of imprisonment of 2 years ( c ) Definition.For purposes of this section, the term felony violation enumerated in subsection ( c ) means any offense that is a felony violation of ( 4 ) any provision contained in this chapter ( relating to fraud and false statements ), other than this section or section 1028 ( a ) ( 7 ) ; The following accounts are reporting inaccurate experiences and transactions on my consumer report and must be removed. 
XXXX XXXX XXXX ; XXXX XXXX XXXX XXXX number : XXXX Care credit Account No. : XXXX The date opened, date of last activity, date of last payment, and payment status is incorrectly being reported by XXXX XXXX, XXXX XXXX, XXXX XXXX XXXX, XXXX XXXX, XXXX XXXX and XXXX XXXX XXXX XXXX XXXX. 
XXXX XXXX XXXX, do not possess a valid contract endorsed by the consumers wet signature. 15 U.S. Code 78cc. Provisions of this section merely supplements the rule of tort law imposing liability on persons causing damage by violating statute. E.F. Hutton & Co. v. Brown, S.D.Tex.1969, 305 F.Supp. 371. Securities Regulation 35.17 XXXX XXXX XXXX shared the consumers social security number which is personally identifiable financial information with third parties XXXX XXXX, XXXX XXXX, XXXX XXXX XXXX, XXXX XXXX, XXXX XXXX, and XXXX XXXX XXXX, XXXX without required disclosures, and the authorization of the consumer. Agencies ' definition of personally identifiable financial information '' in promulgating regulations under GrammLeachBliley Act was not arbitrary and capricious, where regulations focused on protecting information that consumers were required to provide in order to obtain financial services, rather than information that was volunteered for other purposes, such as sweepstakes. 5 U.S.C.A. 706 ( 2 ) ( A ) ; GrammLeachBliley Act, 509 ( 4 ) ( A ), 15 U.S.C.A. 6809 ( 4 ) ( A ) ; 16 C.F.R. 313.3 ( o ) ( 1 ). 
XXXX XXXX XXXX XXXX XXXX XXXX v. F.T.C., 2001, 145 F.Supp.2d 6, affirmed 295 F.3d 42, 353 U.S.App.D.C. 42, rehearing denied. Finance, Banking, And Credit 1693 XXXX XXXX XXXX ; XXXX XXXX XXXX, have a legal obligation to give the consumer an opportunity to exercise the nondisclosure option. Credit reporting agencies themselves could not provide direct notice to customers of financial institutions to obtain their consent to opt-out of GrammLeachBliley Act 's prohibition against disclosure of personal information in order that customers ' personal information might be used for credit header information, since to do so would defeat central purpose of the Act because it was responsibility of financial institutions to protect the privacy and confidentiality of their customers ' personal information by giving them responsibility to provide notice and opt-out rights to consumers. GrammLeachBliley Act, 501 et seq., 15 U.S.C.A. 6801 et seq. 
XXXX XXXX XXXX XXXX XXXX XXXX v. F.T.C., XXXX, XXXX F.Supp.2d 6, affirmed 295 F.3d 42, 353 U.S.App.D.C. 42, rehearing denied. Finance, Banking, And Credit 1695 XXXX XXXX XXXX ; XXXX XXXX XXXX have failed to provide the consumer with notice of preservation of consumer claims and defenses. The FTC Holder Rule provides that the seller has committed an unfair and deceptive act or practice by accepting or making a consumer contract that fails to contain the required Notice or by accepting proceeds of a loan made under a contract which failed to contain the Notice. However, this is governed by section 5 of the FTC Act, which does not provide a private remedy. Thus, the consumer 's remedy against the seller is under state deceptive trade practices laws pursuant to the provisions of 16 C.F.R 433.2. 16 CFR pt. 433 ( The FTC Holder Rule ). See, e.g., Beemus v. Interstate Nat. Dealer Services , Inc., 823 A.2d 979 ( Pa. Super. 2003 ). See also infra Part IV. 
XXXX XXXX XXXX ; XXXX XXXX XXXX are using extortionate means to punish the consumer for the nonpayment of an alleged extension of credit by sharing the consumers nonpublic personal information with nonaffiliated third parties XXXX XXXX, XXXX XXXX, XXXX XXXX XXXX, XXXX XXXX, XXXX XXXX, and XXXX XXXX XXXX, XXXX without consumers authorization to report inaccurate experiences and transactions that damage the consumer. The purpose of 18 U.S. Code 894 is to safeguard consumers in connection with utilization of credit and included in this purpose is the desire to protect consumers from being forced to make credit repayments through extortion. U.S. v. Carvelli, E.D.N.Y.1972, 340 F.Supp. 1295, affirmed 464 F.2d 1129, certiorari denied 93 S.Ct. 462, 409 U.S. 1023, 34 L.Ed.2d 314, certiorari denied 93 S.Ct. 684, 409 U.S. 1076, 34 L.Ed.2d 664. Finance, Banking, And Credit 1322 Under aggravated identity theft statute 18 U.S. Code 1028A, which applies when a defendant, during and in relation to any predicate offense, knowingly transfers, possesses, or uses without lawful authority a means of identification of another person, a defendant uses another person 's means of identification in relation to a predicate offense when the use is at the crux of what makes the conduct criminal, and being at the crux of the criminality requires more than a causal relationship, such as facilitation of the offense or being a but-for cause of its success ; instead, with fraud or deceit crimes, the means of identification specifically must be used in a manner that is fraudulent or deceptive. Dubin v. United States, U.S.2023, 143 S.Ct. 1557, 599 U.S. 110, 216 L.Ed.2d 136. False Pretenses 213 ; False Pretenses 228 This subchapter is designed to protect consumers who have been victimized by unscrupulous debt collectors, regardless of whether valid debt actually exists. Baker v. G.C. Services Corp., C.A.9 ( Or. ) 1982, 677 F.2d 775. Finance, Banking, And Credit 1474 This failure to comply with Federal regulations constitutes aggravated identity theft. This inaccurate reporting is causing severe damage to the consumers mode of living and his ability to obtain credit for personal and household essential goods.

Remove these accounts within 3 business days of this notice in accordance with 15 U.S. Code 1681i ( 8 ) - Procedure in case of disputed accuracy from all three consumer reporting agencies, and send a description of the investigation as well an updated copy of my consumer report or face civil and criminal liability.

( 8 ) Expedited Dispute Resolution If a dispute regarding an item of information in a consumers file at a consumer reporting agency is resolved in accordance with paragraph ( 5 ) ( A ) by the deletion of the disputed information by not later than 3 business days after the date on which the agency receives the notice of the dispute from the consumer in accordance with paragraph ( 1 ) ( A ), then the agency shall not be required to comply with paragraphs ( 2 ), ( 6 ), and ( 7 ) with respect to that dispute if the agency ( A ) provides prompt notice of the deletion to the consumer by telephone ; ( B ) includes in that notice, or in a written notice that accompanies a confirmation and consumer report provided in accordance with subparagraph ( C ), a statement of the consumers right to request under subsection ( d ) that the agency furnish notifications under that subsection ; and ( C ) provides written confirmation of the deletion and a copy of a consumer report on the consumer that is based on the consumers file after the deletion, not later than 5 business days after making the deletion. 
ACCOUNT ( XXXX ) TO BE REMOVED ; XXXX XXXX XXXX ; XXXX XXXX XXXX XXXX XXXX. XXXX Care credit Account No. : XXXX The date opened, date of last activity, date of last payment, and payment status is incorrectly being reported by XXXX XXXX, XXXX XXXX, XXXX XXXX XXXX, XXXX XXXX, XXXX XXXX and XXXX XXXX XXXX XXXX XXXX. 

15 U.S. Code 1691e - Civil liability ( a ) Individual or class action for actual damages Any creditor who fails to comply with any requirement imposed under this subchapter shall be liable to the aggrieved applicant for any actual damages sustained by such applicant acting either in an individual capacity or as a member of a class. 
( b ) Recovery of punitive damages in individual and class action for actual damages ; exemptions ; maximum amount of punitive damages in individual actions ; limitation on total recovery in class actions ; factors determining amount of award Any creditor other than a government or governmental subdivision or agency, who fails to comply with any requirement imposed under this subchapter shall be liable to the aggrieved applicant for punitive damages in an amount not greater than {$10000.00}, in addition to any actual damages provided in subsection ( a ), except that in the case of a class action the total recovery under this subsection shall not exceed the lesser of {$500000.00} or 1 per centum of the net worth of the creditor. In determining the amount of such damages in any action, the court shall consider, among other relevant factors, the amount of any actual damages awarded, the frequency and persistence of failures of compliance by the creditor, the resources of the creditor, the number of persons adversely affected, and the extent to which the creditors failure of compliance was intentional.

15 U.S. Code 1681o - Civil liability for negligent noncompliance ( a ) In general Any person who is negligent in failing to comply with any requirement imposed under this subchapter with respect to any consumer is liable to that consumer in an amount equal to the sum of ( 1 ) any actual damages sustained by the consumer as a result of the failure; and ( 2 ) in the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorneys fees as determined by the court.

( b ) Attorneys fees On a finding by the court that an unsuccessful pleading, motion, or other paper filed in connection with an action under this section was filed in bad faith or for purposes of harassment, the court shall award to the prevailing party attorneys fees reasonable in relation to the work expended in responding to the pleading, motion, or other paper.

15 U.S. Code 1693n - Criminal liability ( a ) Violations respecting giving of false or inaccurate information, failure to provide information, and failure to comply with provisions of this subchapter Whoever knowingly and willfully ( 1 ) gives false or inaccurate information or fails to provide information which he is required to disclose by this subchapter or any regulation issued thereunder; or ( 2 ) otherwise fails to comply with any provision of this subchapter ; shall be fined not more than {$5000.00} or imprisoned not more than one year, or both.

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 non-monetary relief