Consumer complaint received 2024-11-25 00:00:00
Product: Credit card — Store credit card
Issue: Problem when making payments — Problem during payment process
Company: SYNCHRONY FINANCIAL
State: GA

Complaint narrative:
I am filing this complaint against Synchrony Bank due to ongoing issues with their payment allocation practices and customer service, which I believe to be unethical and potentially fraudulent. 

Here is my situation : I purchased drums and cymbals through XXXX XXXX XXXX XXXX, using their finance provider, Synchrony Bank, which included multiple XXXX XXXX interest promotions with different end datesone for 12 months and the other for 48 months. To ensure timely payments, I set up auto-payments online. However, Synchrony split the payments between the two promotions in a manner that did not allocate enough funds to pay off the first promotion by its end date ( XX/XX/2024 ). Failure to pay off a promotion in full by its end date results in deferred interest charges, as if the promotion had never been offered. 

In XX/XX/2024, I realized the issue and called Synchrony Bank to request the complete balance for the first promotion. Although I use their auto-pay feature, I made an additional payment of {$990.00} to cover the remaining balance and was assured the balance for the first promotion would be XXXX. I was told by the associate, " Currently the system is not letting me allocate to one promotion... I will have to submit this to the back office team. '' I was told it will take 24-48 hours. However, the system did not allocate the payment correctly, leaving a balance of {$55.00} on the first promotion. 

I have since contacted Synchrony Bank multiple times : On my second call, I was told again that the error would be escalated to the back office team, and {$55.00} of the additional payment would be reallocated to the first promotion. This did not happen. 

On my third call, I was assured that my statement would reflect a XXXX balance for the first promotion. When my statement arrived on XX/XX/2024, it still showed a {$55.00} balance with deferred interest of {$360.00} due if not paid in full by XX/XX/2024. 

On my fourth call, a representative claimed I needed to make a minimum payment of {$55.00} each month despite my {$990.00} additional payment. After escalating the issue, a supervisor explained that making an additional payment cancels auto-pay for that month, which I find absurd and misleading. 

After asking an Account Manager ( XXXX, ext. XXXX ) what I needed to do to ensure my balance for the first promotion was {$0.00}, she said I need to make another additional payment of {$55.00} XXXX bring the first promotion to a XXXX balance, so I did. She stated it would take XXXX hours to process. 

Synchrony Bank 's lack of transparency is particularly concerning. They refuse to provide customers with detailed information on how payments are allocated between promotions, making it nearly impossible to verify that payments are being applied correctly. From reading Internet posts, I have found hundreds of musicians that are seemingly being taking advantage of and are confused. 

Despite my best efforts to resolve this issue, Synchrony Bank has not fulfilled its commitments or properly allocated my payments. Their practices appear designed to confuse customers and generate deferred interest charges unfairly. This situation has caused significant frustration, wasted time, and potential financial harm. I request that the CFPB investigate Synchrony Banks payment allocation practices, customer communication, and overall handling of promotional financing to protect other consumers from similar issues. 

Thank you for your attention to this matter. 

Sincerely, XXXX 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