Consumer complaint received 2026-03-12 00:00:00
Product: Checking or savings account — CD (Certificate of Deposit)
Issue: Managing an account — Deposits or withdrawals
Company: SYNCHRONY FINANCIAL
State: FL

Complaint narrative:
Complaint Against Synchrony Bank IRA CD Early Withdrawal Penalties I am submitting this complaint regarding early withdrawal penalties charged by Synchrony Bank in connection with withdrawals from XXXX of my IRA CDs. Before initiating the transaction on XX/XX/year>,, I called Synchrony Bank and asked a very specific question : whether I could withdraw any amount at any time for any reason. The representative informed me that I could, explaining that this was because I had reached the age at which Required Minimum Distributions apply. At no point during that call was I informed that withdrawing funds from the IRA CDs would result in substantial early withdrawal penalties. Relying on that information, I proceeded with the transaction. Synchrony Bank subsequently charged early withdrawal penalties of {$1400.00} on XXXX IRA XXXX and {$1700.00} on another IRA CD, for a total of {$3100.00}. If I had been informed that penalties of this magnitude would apply, I would not have proceeded with the transaction at that time. I escalated this matter internally with Synchrony Bank, including to their Executive Response Team. I was informed that the call recording had been reviewed. Synchrony Banks explanation for refusing to reverse the penalties was that the transaction was not a withdrawal but rather a trustee-to-trustee transfer, and that because I did not take possession of the funds, the penalty was required. However, my understanding is that trustee-to-trustee transfer rules relate to tax treatment under Internal Revenue Service regulations and do not require a bank to impose a CD early withdrawal penalty. Early withdrawal penalties arise from the contractual terms of the CD, not from federal law governing IRA transfers. The central issue is that I specifically contacted Synchrony Bank in advance to ask whether I could withdraw funds, and the representative informed me that I could because I had reached the age where Required Minimum Distributions apply. The substantial early withdrawal penalties totaling {$3100.00} were not disclosed during that conversation. Because I relied on the information provided by Synchrony Banks representative when making my decision, I believe the penalties were applied based on incomplete or misleading information. Resolution Requested : I respectfully request a full refund of the {$3100.00} in early withdrawal penalties. Because this matter involves what was disclosed during my phone call, I also request that Synchrony Bank provide the call recording or documentation showing that the early withdrawal penalties were clearly disclosed to me when I asked about withdrawing funds. I also request that Synchrony Bank preserve the recording of that call and all related records while this matter remains under formal dispute. Sent from my XXXX

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