Consumer complaint received 2025-05-21 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: SYNCHRONY FINANCIAL
State: TX

Complaint narrative:
Consumer Financial Protection Bureau XXXX. XXXX XXXX Iowa XXXX, IA XXXX Subject : Formal Complaint Against CareCredit Dear CFPB Representative, I am writing to formally lodge a complaint against CareCredit regarding a series of troubling incidents that have violated my rights as a consumer. 

In XX/XX/XXXX, I sent a certified letter to CareCredit, which they received but never responded to. My issues began in XX/XX/XXXX when I gave birth. After making payments on my account until XX/XX/XXXX, I faced financial hardship due to unemployment. In XX/XX/XXXX, I contacted CareCredit to request relief, and they agreed to a payment plan, which commenced on XX/XX/XXXX. 

However, the first deduction was not made as promised. After contacting them on XX/XX/XXXX, CareCredit admitted that the agent before me had failed to implement the payment plan, and they subsequently deducted the payment in XX/XX/XXXX. Again, in XX/XX/XXXX, no payment was deducted, prompting me to call once more. 

On XX/XX/XXXX, I received a letter from a collection agency, indicating that CareCredit had sold my account to themwithout notifying me. I was in a payment plan at the time, which only compounded my frustration. When I requested my account statement, CareCredit informed me that my account was closed and would not provide any documentation. 

In XX/XX/XXXX, I sent another certified letter that has gone unanswered to date. Unbelievably, despite having charged off my account, CareCredit continued to deduct payments from my bank account as of XX/XX/XXXX. 

Most recently, I received a refund on a transaction, and CareCredit processed it to the same charged-off account, which raises significant concerns about their practices. 

Given this situation, I have XXXX primary inquiries : 1. Do they have the right to accept payments into an account that has been charged off?

2. Why was my account charged off while I was actively on a payment plan?

I believe that CareCredit 's actions may violate the Fair Credit Reporting Act ( FCRA ), particularly * * 15 U.S.C. 1681s-2 * * and * * 15 U.S.C. 1681i * *, which require accurate reporting and provide consumers the right to dispute information in their credit files. The failure to communicate about the status of my account, the conduct surrounding the payment plan, and the subsequent actions taken, go against the principles of fairness and transparency mandated by these provisions. 

Given the situation where CareCredit charged off your account in XX/XX/XXXX but still processed a refund to that same account in XX/XX/XXXX, it raises serious concerns about their practices and adherence to proper procedures. Here are some points to consider regarding this issue : 1. Inappropriate Handling of XXXX Accounts : If the account was charged off, CareCredit should not have been able to process any transactions related to that account, including refunds or payments. This indicates a potential violation of standard practices in managing charged-off accounts. 

2. Breach of Duty : By accepting a refund request after the account was marked as charged off, CareCredit may have breached their duty to manage accounts properly and in accordance with applicable financial regulations.

3. Lack of Communication : The fact that they processed a refund without notifying you shows a lack of proper communication. CareCredit should have informed you that the account was closed and that any further financial transactions related to that account were not permissible.

4. Consumer Rights : You have the right to expect that once an account is charged off, it should be treated as no longer active in terms of accepting payments or processing refunds. The ongoing acceptance of funds into a charged-off account can be considered an unfair practice. 

I kindly request your assistance in investigating this matter, and I hope that you can help me hold CareCredit accountable for their actions. I am seeking clarity on my rights as a consumer and hope for a resolution to rectify this situation. 

Thank you for your attention to this matter. I look forward to your prompt response. 

Sincerely,

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