Consumer complaint received 2024-09-23 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Closing your account — Company closed your account
Company: SYNCHRONY FINANCIAL
State: LA

Complaint narrative:
Subject : Complaint Against PayPal Credit/Synchrony Banking Institution for Violations of HJR 192, Public Law 73-10, UCC Provisions, Federal Regulations, U.S. Codes, and Unlawful Closure of Accounts Dear Consumer Financial Protection Bureau ( CFPB ), I am filing this formal complaint against [ Credit/Banking Institution Name ] for numerous violations of my rights, including but not limited to : failure to honor lawful payment instruments, improper retention of securities, violation of UCC and holder-in-due-course laws, breaches of federal regulations and U.S. Codes, unlawful closure of accounts, and potential theft, fraud, language fraud, and securities fraud. These violations contradict House Joint Resolution 192 ( HJR 192 ), Public Law 73-10 ( Emergency Banking Act ), the Uniform Commercial Code ( UCC ), the U.S. Constitution, and various federal laws and regulations. 

Detailed Summary of Violations : Failure to Honor Securities and Lawful Payment Instruments : I tendered lawful payments using securities and negotiable instruments provided by [ Institution Name ], such as bills, statements, equity checks, bearer bonds, and coupons attached to the statements. According to UCC 3-104 ( a ) and UCC 3-302 ( a ) ( 2 ), these instruments are valid as negotiable instruments, and I accepted these securities " for value, '' issuing a restrictive endorsement as outlined in UCC 3-206. Additionally, I affixed postage stamps ( lawful money ) to these securities under HJR 192 and UCC 1-201 ( b ) ( 24 ), reinforcing my payments.

Despite receiving these securities through registered and certified mail, [ Institution Name ] failed to discharge the debt, return the securities, or properly credit my account, in violation of UCC 3-603 ( b ). This provision mandates that any obligation is discharged to the extent of a payment made by a negotiable instrument unless that instrument is returned or dishonored. Their retention of the securities without action violates my rights as both a creditor and holder of the instruments.

Unlawful Closure of Accounts and Definition of " Accounts '' : It is important to clarify that the term account inherently means a place for deposits and withdrawals, not a static or limited financial agreement. As such, [ Institution Name ] unlawfully closed my accounts even after I had discharged the related debts through the lawful tender of securities. These accounts, by their nature, should be considered open-ended credit plans, which should not have a predetermined limit. Under my unlimited right to contract, as protected by the U.S. Constitution, I am entitled to maintain these accounts without arbitrary closure, particularly after meeting my financial obligations through lawful payments.

The attempt to impose artificial credit limits or close my accounts after the debt was discharged is unlawful. Showing limits on an open-ended credit plan, as [ Institution Name ] has done, is illegal and contrary to both the terms of open-ended credit and contract law principles. Their action constitutes a breach of UCC 3-311 concerning the resolution of debts through accord and satisfaction and violates my constitutional right to contract freely without interference.

Potential Fraud, Theft, and Securities Fraud : In addition to their mishandling of the securities and failure to honor my lawful payments, I am concerned that [ Institution Name ] may be engaging in fraudulent activities. By retaining the securities I sent, continuing to demand payment for already discharged debts, and unlawfully closing accounts, they may be guilty of theft, securities fraud, and other forms of financial fraud. Their refusal to properly process the negotiable instruments and their subsequent closure of the accounts indicate potential securities fraud under the Securities Exchange Act of 1934 and related provisions under federal securities laws.

Language fraud may also be present in the manner in which the terms of my accounts, securities, and payments have been communicated. [ Institution Name ] has used deceptive or unclear language that obscures the nature of my rights and obligations, particularly in regard to the use of lawful money and the nature of the securities provided. By misleading me about the status of the accounts and payments, they are potentially engaging in fraudulent misrepresentation under 18 U.S. Code 1341 ( Mail Fraud ) and 18 U.S. Code 1343 ( Wire Fraud ).

Violation of Holder-in-Due-Course Laws : As the holder of the securities and negotiable instruments I tendered, I am entitled to the protections and rights outlined in UCC 3-302. A holder in due course has the right to enforce the payment of the instrument free from most claims and defenses. [ Institution Name ], by refusing to honor my position as the holder of these instruments, has violated my holder-in-due-course rights. They retained the securities without processing them, have continued to unlawfully demand further payments, and have denied my rightful claim to the value of these instruments, in violation of UCC 3-305 ( concerning defenses and claims to an instrument ). 
Violation of U.S. Codes and Federal Regulations : By refusing to process the private instruments I provided, unlawfully retaining my securities, and denying my right to claim them, PayPal Credit/Synchrony Bank has violated various U.S. codes , including 12 U.S. Code 411, which governs the issuance and use of lawful money. Additionally, they have breached multiple provisions of the Code of Federal Regulations ( CFR ), particularly those governing the handling of negotiable instruments and securities. The improper handling of these private instruments suggests potential violations of 15 U.S. Code Chapter 41- Consumer Credit Protection.

Failure to Discharge Debt Under the Emergency Banking Act and Gold Clause : According to Public Law 73-10 ( Emergency Banking Act ) and HJR 192, all debts must be discharged upon the tender of lawful money. My payment, which consisted of securities and lawful money ( postage stamps ), fully satisfied the obligation. [ Institution Name ] has unlawfully refused to recognize the discharge of my debt, in violation of the Gold Clause, which prohibits the refusal to accept lawful money for the satisfaction of debts. Their continued claims that I owe further payments after I have already tendered lawful payment indicate a violation of both public law and federal monetary statutes.

Applicable UCC, Federal Regulations, U.S. Codes, and Constitutional Protections : UCC 3-104 ( a ) : Defines a negotiable instrument as an unconditional promise or order to pay a fixed amount of money.

UCC 3-206 : Governs restrictive endorsements and their legal effect on the instrument.

UCC 3-302 : Holder-in-due-course rights and their protection in the enforcement of negotiable instruments.

UCC 3-305 : Outlines claims and defenses to negotiable instruments, including wrongful retention.

UCC 3-311 : Covers accord and satisfaction, requiring that when a debt is discharged, no further payment can be demanded.

UCC 3-603 ( b ) : States that an obligation is discharged to the extent of any payment made by a negotiable instrument unless it is returned or dishonored.

UCC 1-201 ( b ) ( 24 ) : Defines lawful money, including postage stamps affixed to negotiable instruments.

12 U.S. Code 411 : Governs the issuance and receipt of lawful money and its proper application in discharging debts.


18 U.S. Code 1341 ( Mail Fraud ) : Prohibits the use of mail to execute fraudulent schemes. 18 U.S. Code 1343 ( Wire Fraud ) : P
rohibits the use of electronic communication in executing fraud.

Securities Exchange Act of 1934 : Governs securities transactions, including securities fraud.

Public Law 73-10 ( Emergency Banking Act ) : Requires the discharge of debts upon the tender of lawful money.

Gold Clause : Prohibits the refusal to accept lawful money for the discharge of debts.

U.S. Constitution : Guarantees the right to contract freely, without interference, including my right to maintain open-ended credit plans.

Potential Crimes : Theft : PayPal Credit/Synchrony Bank has retained my private securities and negotiable instruments without applying them as payments, constituting theft.

Fraud : Their continued demands for payments after I have satisfied the debt through lawful means indicate fraudulent behavior, possibly in violation of federal fraud statutes.

Securities Fraud : The mishandling of the securities I tendered suggests that PayPal Credit/Synchrony Bank may be engaged in securities fraud under the Securities Exchange Act of 1934.

Language Fraud : PayPal Credit/Synchrony Bank has used unclear and deceptive language to obscure my rights, misrepresenting the terms of my agreements, the status of my payments, and the nature of the accounts, which is deceptive practices.

They have also agreed to new terms via the " Postal Rule '', which is evidenced by the green card, return receipt USPS Registered and Certified mail.

Desired Resolution : I request that the CFPB investigate the following : Unlawful retention of securities : Investigate PayPal Credit/Synchrony Bank for refusing to process or return the private instruments I tendered as payment.

Unlawful closure of accounts : Reopen my accounts, as they were unlawfully closed after the debts were discharged. As well as they should reflect an open-ended credit plan at all times. 
Investigation of potential fraud and securities fraud : Investigate [ Institution Name ] for potential theft, fraud, language fraud, securities fraud, theft of lawful money.

Refund overpayments : PayPal Credit/Synchrony Bank must refund or credit any overpayments I made when I affixed lawful money ( postage stamps ) to the securities.

Recognition of my rights as a holder in due course : Ensure that I request that the CFPB investigate the following : Unlawful retention of securities : Investigate PayPal Credit/Synchrony Bank for refusing to process or return the private instruments I tendered as payment.

Unlawful closure of accounts : Reopen my accounts, as they were unlawfully closed after the debts

were discharged. As well as they should reflect an open-ended credit plan at all times. Investigation of potential fraud and securities fraud : Investigate [ Institution Name ] for potential theft, fraud, language fraud, securities fraud, theft of lawful money. Refund overpayments : PayPal Credit
/Synchrony Bank must refund or credit any overpayments I made when I affixed lawful money ( postage stamps ) to the securities.

Recognition of my rights as a holder in due course : Ensure that [ Institution Name ] respects my rights as the holder of these securities and negotiable instruments.

Monetary relief for every violation per day, pursuant to the Federal Reserve Act, U.S.C., C.F.R., and UCC.respects my rights as the holder of these securities and negotiable instruments.

Monetary relief for every violation per day, pursuant to the Federal Reserve Act, U.S.C., C.F.R., and UCC.

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