topic Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws in Credit Cards

Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Lawsuit?

onr — Wed, 14 Jun 2023 22:34:05 GMT

Hello guys,

So there is a serious problem with Synchrony bank.

-I have 750 credit score. Using Synchrony cards everyday since 2016 and pay full balance every month.

-I never had any late payment with Synchrony or any other bank card, loans etc. Everything is on time.

-I have a very clear credit report with only %8 utilization that are always paid in full every month.

2 days ago I woke up with bunch of emails. Synchrony closed all of my accounts for nothing. Called customer service and they were even confused why it is happened.

Amazon store card $590 balance of $20000 limit.

Paypal Mastercard $350 balance of $20000 limit.

Ebay Mastercard $1.87 balance of $10.000 limit

Synchrony car care $1400 balance of $10.000 limit

Adorama Edge card $0 balance of $3500 limit

Paypal credit $950balance of $5000 limit

Sweetwater card $1200 balance of $6000 limit (They approved this card 2 days before closing all the accounts)

Now dilemma starts here;

Cards with balances reported to my credit reports as ''settled amount'' I've got an email from Chase Credit Journey says;

"It looks like you settled an account with a lender. When you settle an account, you negotiate a lump-sum payment with your lender to pay back part of what you owe so that the rest is forgiven."

For those balances statement not even closed yet. I did not even get the statements to pay the balances.

-I never wanted to close the accounts.

-I never attempted not to pay the balances or never attempted to negotiate for settlement.

Did anybody have and experience like this before? Would it be a possible lawsuit? I don't know where to start. I've never ever experienced anything like this before.

Any thoughts?

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws

Guyatthebeach — Wed, 14 Jun 2023 20:46:19 GMT

Onr,

Welcome to the forum!

If you didn't settle those cards, then there is a huge issue. You need to contact Synchrony to get this resolved, because there are long term impacts on your ability to obtain credit in the future.

This is definitely a CFPB complaint and potential lawsuit.

Guyatthebeach

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws

onr — Wed, 14 Jun 2023 20:48:33 GMT

Thank you for your answer.

Yes, I never attempted to close or settle the amount. I always pay on time right after they send the statement. My credit score already dropped by 20 points. I just need some advice from the users if anyone had any issue something like that before.

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws

GZG — Wed, 14 Jun 2023 20:53:49 GMT

are you, a SO, somebody in your family, in your household filing for BK, being sued? anything of the sort?

I imagine they just want to close your accounts are inaccurately reporting as such, and you definitely should get that reporting fixed, but hopefully the closures themselves are the error and you get your accounts back and the reporting fixed

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws

GApeachy — Wed, 14 Jun 2023 20:57:47 GMT

First, you need to take screen shots of everything you're viewing and where you're viewing this info.

Next, you need to go to Annualcreditreport.com and obtain and download all 3 cr's.

Compare

Gather all payment info for each acct. going back a year at least.

It's all about Document, document, document

Then, comfirm any and all inaccuracies....document individually.

If there are indeed same inaccuracies being reported on your 3cb's you should consult with a local consumer attorney.

Not for monetary gain but from the fall out that could come.....you will need help.

Let us know what you can confirm through Annualcreditreport.com

GL!

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws

onr — Wed, 14 Jun 2023 21:09:41 GMT

No one around me filed a BK. Nothing happened. Their reason is "I'm a high risk customer to pay the balances. I'm paying the balances of their credit card since 2017 every month. No single missed or late payment. No single payment return. I have a very very good monthly income.

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws

GApeachy — Wed, 14 Jun 2023 21:17:03 GMT

@onr wrote:

No one around me filed a BK. Nothing happened. Their reason is "I'm a high risk customer to pay the balances. I'm paying the balances of their credit card since 2017 every month. No single missed or late payment. No single payment return. I have a very very good monthly income.

Hey, how about logging back on to your acct(s) if you can and pull your VS4 (credit score) and see if it's dropped dramatically over the past few months.

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws

SouthJamaica — Wed, 14 Jun 2023 21:22:24 GMT

@onr wrote:
Hello guys,

So there is a serious problem with Synchrony bank.
-I have 750 credit score. Using Synchrony cards everyday since 2016 and pay full balance every month.
-I never had any late payment with Synchrony or any other bank card, loans etc. Everything is on time.
-I have a very clear credit report with only %8 utilization that are always paid in full every month.

2 days ago I woke up with bunch of emails. Synchrony closed all of my accounts for nothing. Called customer service and they were even confused why it is happened.

Amazon store card $590 balance of $20000 limit.
Paypal Mastercard $350 balance of $20000 limit.
Ebay Mastercard $1.87 balance of $10.000 limit
Synchrony car care $1400 balance of $10.000 limit
Adorama Edge card $0 balance of $3500 limit
Paypal credit $950balance of $5000 limit
Sweetwater card $1200 balance of $6000 limit (They approved this card 2 days before closing all the accounts)

Now dilemma starts here;

Cards with balances reported to my credit reports as ''settled amount'' I've got an email from Chase Credit Journey says;

"It looks like you settled an account with a lender. When you settle an account, you negotiate a lump-sum payment with your lender to pay back part of what you owe so that the rest is forgiven."

For those balances statement not even closed yet. I did not even get the statements to pay the balances.

-I never wanted to close the accounts.
-I never attempted to not pay the balances or never attempted to negotiate for settlement.

Did anybody have and experience like this before? Would it be a possible lawsuit? I don't know where to start. I've never ever experienced anything like this before.

Any thoughts?

Welcome to the forum.

There have been dozens of reports just like yours about Synchrony.

It's been a recurring problem for over 2 years. Customers who had multiple accounts with large combined limits, and little or moderate usage, have been seeing all their accounts closed at once.

My theory is that Synchrony is doing it to pretty up its financial statements by quickly reducing its loan loss reserves.

Needless to say you should dispute any incorrect entries in your credit reports.

As to whether you can reason with Synchrony, that I don't know.

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws

bourgogne — Wed, 14 Jun 2023 21:27:43 GMT

gosh that is a lot of limit to vanish at once. sorry for this. honestly I don't know why anybody uses these types of lenders. anyhow, you say you have a 750 score - is that fico 8 - what are all 3 of your scores before this happened, how long is your total history, your oldest account, why is your score only 750 and do you have any AUs on any of the sync accounts?

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws

GApeachy — Wed, 14 Jun 2023 21:30:34 GMT

But does anyone remember any mf peeps reporting on their syncrony closures as having "settled"?

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws

bourgogne — Wed, 14 Jun 2023 21:42:17 GMT

@GApeachy wrote:
But does anyone remember any mf peeps reporting on their syncrony closures as having "settled"?

can you imagine 7 accounts all reporting as COs - man I would be all over this to contain it. that is the best reason to stick to professional lenders that can be talked and reasoned with. imo

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws

GApeachy — Wed, 14 Jun 2023 21:50:03 GMT

@bourgogne no....not a good look. I'd screenshot all the "settled" notations and get some qualified help asap.

We've seen slip ups, even recently, with FI's reporting closed or deceased across the board for 10's of 1000's that was resolved within a 24 hr period. But this is harsh if settlement doesn't exist.

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws

TheRedHat — Wed, 14 Jun 2023 21:57:15 GMT

That sounds terrible! Please keep all of us updated on your progress with getting this resolved.

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws

Anonymous — Wed, 14 Jun 2023 22:10:51 GMT

@GApeachy wrote:
First, you need to take screen shots of everything you're viewing and where you're viewing this info.
Next, you need to go to Annualcreditreport.com and obtain and download all 3 cr's.
Compare
Gather all payment info for each acct. going back a year at least.
It's all about Document, document, document
Then, comfirm any and all inaccuracies....document individually.
If there are indeed same inaccuracies being reported on your 3cb's you should consult with a local consumer attorney.
Not for monetary gain but from the fall out that could come.....you will need help.

Let us know what you can confirm through Annualcreditreport.com
GL!

Right, my question here is on which credit reports are the accounts reported as settled? If Annualcreditreport shows that, then yes, there is a problem, but if it is Chase, that could be just an issue there (and we have seen temporary mistakes on these reporting services).

And just to be clearer with OP, to distinguish between some of the responses:

1) Sync closing several accounts at once, including just approved ones, is relatively common around here. Lots of posts. Several theories as to what triggers it, but certainly have many high credit limit accounts with low usage seems to be a danger (as would very high usage on multiple high limit accounts).

2) But reporting as settled is perhaps unique. I would expect it can get fixed, but might take some time and effort which you shouldn't have to spend, but life isn't always fair.

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws

GZG — Wed, 14 Jun 2023 22:19:51 GMT

@bourgogne wrote:
@GApeachy wrote:
But does anyone remember any mf peeps reporting on their syncrony closures as having "settled"?
can you imagine 7 accounts all reporting as COs - man I would be all over this to contain it. that is the best reason to stick to professional lenders that can be talked and reasoned with. imo

I imagine they aren't reporting as settled, they're reporting as closed with the comment just being 'settled' I would seriously hope Synch didn't just place 7 COs on OP's file all at once, that's lawyer territory immediately

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws

onr — Wed, 14 Jun 2023 22:30:39 GMT

I did all the disputes and complants. Took a lot of time.

I'm going to provide all new information and update everyone.

And yes, Synchrony has extremly poor risk management. That was a great lesson for me. I would never never ever open any account from non-major creditors again. They are super "risky creditor" for the consumer.

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws

GApeachy — Wed, 14 Jun 2023 23:24:03 GMT

@onr were these closed synchrony accts listed on your cr's from Annualcreditreport.com? If so, were they also notated as "settled"?

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws

markhs777 — Thu, 15 Jun 2023 01:47:00 GMT

Obviously the bank has every right to close any account it wants. The term "settled "doesn't necessarily denotes negatively.

Going forward you may actually incur a more difficult path for additional credit however only a legal professional can determine if indeed Synchrony has any liability.

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws

SUPERSQUID — Thu, 15 Jun 2023 06:00:19 GMT

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws

GApeachy — Thu, 15 Jun 2023 08:07:01 GMT

@markhs777 wrote:
The term "settled "doesn't necessarily denotes negatively.

I'm pretty sure it does. Taken from Experian, search "settled":

"Settled Accounts Remain on Your Credit Report for Seven Years

When you settle, the account will not be removed immediately from your credit report. If you were late on payments, the account will remain on your credit report for seven years from the original delinquency date.

If the account was positive, meaning there are no late payments in the account history, the account will remain on your report for seven years from the date it was settled."

"It is always better to pay off your debt in full if possible. While settling an account won't damage your credit as much as not paying at all, a status of "settled" on your credit report is still considered negative."