Amazon Synchrony Suspended All Accounts - What happens to 0%

[JMCB]

So like everyone else, I got the blue envelope. I spoke to my tax attorney today and we did a conference call with Synchrony Bank. For different reasons, we have filed a tax extension until Oct 1st of this year. So I have no taxes for 2016 to turn over. They would not accept the prior years tax returns and also a letter stating I filed an extension. After I got home it made me think about my Amazon Store Card. It is the only Synchrony card I owe on. It has a balance of $7,000 on a $25,000 limit. It is a 0% for 24 month offer. If they close my accounts, does anyone know what will happen to my 0% offer? Will they choose to bring the account due immediately? Or will they allow me to keep the 0% offer but keep the account closed as long as I make my paymets? 

[Anonymous]

I'm pretty sure they have to keep the terms the same if you're current, even if closed.

[pipeguy]

They have to honor the terms of the offer as long as you do (aka don't miss any payments). That said, the account will report as 100% utility with no credit for $7k of $25k, it'll be balance $7k, available credit on that account $0, so even if you double up payments, it'll still report at 100% utility - the 0% APR promotion doesn't report as a 0% promotion, just an account balance. 

[JMCB]

Thats what I thought but I wasnt sure. I have a choice to send in the document to them. Let them pull prior years taxes and then shut down the accounts. Or like others said, shut them down before they do. Which I am thinking of closing all except Amazon. Thats the only one I owe them. Then see if they want to evaluate me from prior years taxes and keep open Amazon. Maybe even lower my credit limit. But I think its crazy on their part. 15 years of Excellent credit history. No missed payments. Utilization at 7%. Mortgage, Car loans, credit cards, and lines of credit all in excellent standing. Fico 8s are around 770. They are crazy to loose such a good customer.

[Creditaddict]

I think this is a random computer thing... It doesn't make sense otherwise... I have literally missed payments on Sync accounts and gone into payment arrangements without them ever closing other cards or even CLD other cards... How would that not trigger a review in the system automatically if this wasn't a random thing?

[JMCB]

Well in the last 24 months I am guilty for requesting higher credit lines. Specifically Lowes, Amazon, and Walmart. They are at $25,000 each. I did lots of home improvements. So I guess that's why. But 2 are paid off. And I have run about $20,000 through Amazon and owe around $10,000 left. But I got tired of maxing the cards out so I asked for bigger limits. I think it through a red flag. But I have 4 other credit cards in $25 to 30k range. So it's not like they are special. All those cards are paid off too.

[Moneyklutz]

---

@Creditaddict wrote:

I think this is a random computer thing...

Actuaries would be my guess if we're attempting to apply reason for consequence.

[K-in-Boston]

To elaborate on pipeguy's post, the effect of the card closing with a balance is going to depend on how they report the credit line.  If they report a credit line other than $0 at the time of closing, the balance will be included in your utilization and will affect your scores.  The current 28% util won't matter much if they report the original limit.  If they balance chase after it's closed, that will sting.  The terms of your promotional purchase should remain in place.  Anyone with experience with Synchrony balances on closed card able to chime in on how the card(s) reported credit lines after close?

Sticky on closed cards:

http://ficoforums.myfico.com/t5/Credit-Cards/Closing-Credit-Cards/m-p/347190?jump=true

[AverageJoesCredit]

Another crazy Synch head scratcher. You seem to be very responsible with other limits to match and you really are putting money thtough those accounts unlike some of us lol. Besides possibly being a random thing as stated by CA, unfortunately one of the big signs we took away from our big Synchrony thread regardng the blue envelope, is bigger exposure in terms of limits, regardless if you are using responsibly. Having 75 k on 3 cards is alot of exposure . But with you making big payments and such its a headscratcher all right.

[JMCB]

I just want to state, we make over 200k a year. I put a lot through my cards. My Conoco card averages $1500 a month in fuel. I seriously thought about writing letters to all these companies and make copies of my statements and show them they are loosing customers because of Synchrony. Send in a copy of my credit report and all statements. Showing how much I spend and showing them I've never missed a payment and they are refusing to take prior years tax returns unless I can show 2016. And they don't want to wait for my extension. It's just crazy. Also I want to state I have over $100k in student loans left that I have already paid $50k off. Have $80k in vehicle loans. $20k in Savings. My tax person asked to turn over other information like this. They turned it all down.