Master Synchrony Account Closure Thread

[Meanmchine]

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@Aim_High wrote:

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@Anonymous wrote:

Synch closed my 6 cards with them a couple of weeks ago as well.   No notice, no nothing, just an alert that my cards were closed.  all 6 cards had 10K limits with 0 balance.   Ultimately, they were making no money off me so I'm sure I'm not their most desired customer.  But they cut a customer with 780 FICO score with no negatives and no late payments with a 150K income.  Seems like a poor business decision to me, but at the end of the day the have the right to close accounts and I have the right to say the next time I will app for one of their cards is when Hell freezes over.  The notice in the mail said something about my profile being a risk.   LOL

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Sorry for (their) loss!  Lol   Looks like Synchrony is on quite a roll.  Regardless of whatever credit factors are going into these decisions or the profiles of the cardholders being slashed, I think this wholesale slaughter of credit files is simply inexcusable.  Someone's head at the bank needs to roll for allowing it to apparently overextend their ability to lend to this level.  Why not instead cut most of those  credit limits by 50% or just selectively close a line or two per customer?   I'd love to see a class action lawsuit or a congressional investigation demanding more detailed proof of what made those customers a higher risk.  It sounds like a total excuse.

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This might not have been Synchrony's call.  This might have been ordered by the banks auditors or by the banks insurance company

[forestgreenrover]

I found this analysis especially relevant for our current discussion, which has been excellent btw!

https://seekingalpha.com/amp/article/4338526-synchrony-financial-out-of-sync

"Synchrony is carrying excessive loan exposure vs. tangible equity of 7:1, especially for a low credit quality portfolio, in the best of times. Questionable creditworthiness at its retail card division should keep you up at night, if you own the stock."

[SweetCreditObsession]

I am so sorry to hear this. I hope that you and your family are able to weather this storm.

[chiefone4u]

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@SweetCreditObsession wrote:

I am so sorry to hear this. I hope that you and your family are able to weather this storm.

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Thank you. I'm hopeful that we will make it through with minimal damage. 

Time's like these definitely make you reevaluate your budget. 

[WTL1]

I generally have issues with Seeking Alpha but thanks much for this pointed article.

A lot of posters on this and related credit decreasing topics are like fish, happily swimming in a pond. Covid 19 is a stick of dynamite thrown into the pond, and nobody should be happy (or surprised!) about the unavoidable results.

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@forestgreenrover wrote:

I found this analysis especially relevant for our current discussion, which has been excellent btw!

https://seekingalpha.com/amp/article/4338526-synchrony-financial-out-of-sync

"Synchrony is carrying excessive loan exposure vs. tangible equity of 7:1, especially for a low credit quality portfolio, in the best of times. Questionable creditworthiness at its retail card division should keep you up at night, if you own the stock."

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[Revelate]

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@UncleB wrote:

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@Guyatthebeach wrote:

I've noticed from the various threads Synchrony is closing accounts where cardholders had credit exposure of $50k or more with Synchrony. 

Has anyone seen accounts closed where the cardholders' exposure was less than $30k?

Personally I have 7 cards with a $26k credit exposure. I'm lucky enough to be able to PIF monthly. I only carry a balance when I'm using the promotional APR's. Hopefully Synchrony doesn't close them. If they do, my life goes. 

Guyatthebeach

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I'm hoping there's more to it than $50k in exposure, since my own combined exposure is at $60k.

Lowe's - $20k - Opened 06/2004

Belk - $5k - Opened 05/2006

Sam's Club MC - $20k - Opened 08/2015

Care Credit MC - $15k - Opened 05/2018

So far so good, but if the sword comes my way so be it.  I will be slightly disappointed if I lose Lowe's and/or Belk since they're my oldest credit accounts, but I don't think the loss would harm my scores much by the time they age off.

All four cards have been used (modestly) in the last few months so hopefully that will help if the algorithm comes my way.

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https://www.youtube.com/watch?v=dwYtIhwSUro

[ccpat]

For all you financial experts out there....what happens if/when Synchrony goes bankrupt?  Do all the cards/credit lines get sold off?  Have they been bankrupt before?

[Jnbmom]

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@ccpat wrote:

For all you financial experts out there....what happens if/when Synchrony goes bankrupt?  Do all the cards/credit lines get sold off?  Have they been bankrupt before?

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Who mentioned anything about them going BK?

[chiefone4u]

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@ccpat wrote:

For all you financial experts out there....what happens if/when Synchrony goes bankrupt?  Do all the cards/credit lines get sold off?  Have they been bankrupt before?

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I don't foresee Synchrony going bankrupt; but if for some reason they did accounts receivable would likely be turned over to the courts to pay creditors.

We as debtors would not be released from our debt's just because the company who issued said credit became financial insoluble. 

[RSX]

it seems like now is the time to 

1. not ask for CLI

2. not add an AU to any accounts

3. keep a level of spend on all cards, with PIF where possible

4. increase any mimimum payments by $10-$25 - or double if possible

= fly under the radar