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Master Synchrony Account Closure Thread

credit_endurance
Valued Contributor

Re: Synchrony closed my accounts

Sorry to hear about your account closures op. I too had all my accounts closed as well. Lost over $100K total. Just got to lick your wounds and press forward. They are plenty more lenders out there that are garnering for your attention.

Starting FICO08 Scores 2016 All in the mid 500’s
Current FICO08 Scores AUG 2021 (TU 770) (EQ 775) (EXP 762)

“The credit is no longer bruised, it has endured the test of time” (formally know as bruisedcredit)

Garden Party Until July 2022….Chase 4/24
Message 40 of 1,099
AverageJoesCredit
Mega Contributor

Re: Synchrony closed my accounts


@CreditCrusader wrote:

There are two thoughts circling in my head when I read about Synchrony's recent decision to unexpectedly drop the ax on what appear to be some pretty high-FICO cardholders:

 

1. First the obvious: Those are Synchrony's cards, and therefore they have the right to repossess at their leisure. Much like employers in at-will states who can simply put signs on the doors (provided they don't have any NLRB notification obligations) and lay off employees, card issuers can pretty much yank the rug out from under ANYONE anytime they see fit.

 

2. Also obvious: Synchrony has done this before...and they sent out the same bogus letters with "reasons" for the ambush hatchet jobs. At some point, retailers (many of whom rely pretty heavily on this sort of credit business) are going to tire of this BS and drop Synchrony like a hot potato.

 

Personally, I don't care for store cards. The only one DW and I have is Walmart due to the rewards and the fact that our little neck of the woods doesn't have many places to shop for groceries. But this is going to needlessly hurt the credit profiles of a great many people, to say nothing of sticking it to some retailers who can use the web business right now.

 

Needless to say, DW and I will not be doing business with Synchrony, provided they're still around when the dust of uncertainty settles.


Theyll be around you can count on that.

Message 41 of 1,099
CreditCrusader
Valued Contributor

Re: Synchrony closed all of my accounts today


@policebox wrote:

I'm in the same situation.

 

Just logged in to check my transactions on my PayPal Cash Back MC. Credit limit to $0. Checked all my other Synchrony accounts, all closed.

 

Lost the following:

 

PayPal Cash Back MasterCard $10,000

Rakuten Cash Back Visa $10,000

Chevron/Texaco Card $10,000

Ashley Homestore $25,000

Amazon Prime Store Card $10,000

 

Their reason was that something on my credit report indicated I was high risk, but yet the representative wouldn't tell me what that reason was. Nothing has changed on any of my reports except for opening a mortgage recently.

 

I've had these accounts for years, no late payments, always pay in full (usually before the statement cuts). Only 1% overall utilization. No baddies. 800+ FICO scores. No change in income. Not financially affected by COVID-19.

 

I'll never use another one of their products again if this is how they treat someone who was zero risk to them.


Due respect to Synchrony, but that's a load of nonsense.They're not doing this due to changes in your credit profile and risk.

 

They're reducing their exposure so that they can swoop back in once the trillions the Fed is going to feed the financial sector starts finding its way to lenders to accompany the 0% interest rates. In 6 months, it will be so easy to get a Synchrony-backed store card they'll be giving them away.

 

As for me, I'll NEVER do business with Synchrony...and my dearest wish for them is that retailers who use them will drop them like a bad habit and use Comenity or Capital One instead. This is the second time in two years that Synchrony has done something like this. It's high time they pay a price.

 

 

In my wallet: Cap1 QS $10,000 Apple $1,500 Interra CU $5,000 Sweetwater $15,000

Current scores (EQ, EX, TU): 756, 758, 770
Message 42 of 1,099
Anonymous
Not applicable

Re: Synchrony closed all of my accounts today


@chiefone4u wrote:

@M_Smart007 wrote:

@chiefone4u   Very sorry to hear this, especially during these hard times.


Hopefully the credit unions don't follow suit @M_Smart007 I'll be screwed if PenFed ($15k limit) or BECU ($17k limit) reduce or close accounts. I think I'm safe with BECU as they have a collateral interest in one of my vehicles. 

 

It was upsetting at first, but I'll weather this like all minor setbacks... went from 12% reporting utilization to about 40% utilization. Definitely time to dial it all back in. 


CUs are traditionally much less likely to shut down cards on their members unless they have to because of finances and those two CUs are not hurting for money. 

Message 43 of 1,099
Guyatthebeach
Valued Contributor

Re: Synchrony closed all of my accounts today

I'm geinuinely sorry to hear this. I know Synchrony have been a bear to deal with lately.  

 

Having been through a bankruptcy, I know it's not fatal, it's not final.  You will bouce back from this.

 

Guyatthebeach

Message 44 of 1,099
longtimelurker
Mega Contributor

Re: Synchrony closed all of my accounts today


@CreditCrusader wrote:

As for me, I'll NEVER do business with Synchrony...and my dearest wish for them is that retailers who use them will drop them like a bad habit and use Comenity or Capital One instead. This is the second time in two years that Synchrony has done something like this. It's high time they pay a price.

 

 


Comenity?    Lots of similar threads about them too.   Possibly more.

Message 45 of 1,099
kdm31091
Super Contributor

Re: Synchrony closed all of my accounts today


@longtimelurker wrote:

@CreditCrusader wrote:

As for me, I'll NEVER do business with Synchrony...and my dearest wish for them is that retailers who use them will drop them like a bad habit and use Comenity or Capital One instead. This is the second time in two years that Synchrony has done something like this. It's high time they pay a price.

 

 


Comenity?    Lots of similar threads about them too.   Possibly more.


This. I've seen many threads about Comenity AA, with things like how Caesars (for example) should go with another lender because Comenity is horrible. Should Amazon (for example) go with another lender because of Chase having a 5/24 rule? Because I've seen that mentioned around the Internet too!

 

The point is that there are always going to some people who don't like xyz lender, so the retailer is never going to please every customer, in that sense. I would put Sync and Comenity in basically the same league, so not really any reason for a retailer to prefer one over the other, IMO.

Message 46 of 1,099
longtimelurker
Mega Contributor

Re: Synchrony closed my accounts


@CreditCrusader wrote:

There are two thoughts circling in my head when I read about Synchrony's recent decision to unexpectedly drop the ax on what appear to be some pretty high-FICO cardholders:

 

1. First the obvious: Those are Synchrony's cards, and therefore they have the right to repossess at their leisure. Much like employers in at-will states who can simply put signs on the doors (provided they don't have any NLRB notification obligations) and lay off employees, card issuers can pretty much yank the rug out from under ANYONE anytime they see fit.

 

2. Also obvious: Synchrony has done this before...and they sent out the same bogus letters with "reasons" for the ambush hatchet jobs. At some point, retailers (many of whom rely pretty heavily on this sort of credit business) are going to tire of this BS and drop Synchrony like a hot potato.

 

Personally, I don't care for store cards. The only one DW and I have is Walmart due to the rewards and the fact that our little neck of the woods doesn't have many places to shop for groceries. But this is going to needlessly hurt the credit profiles of a great many people, to say nothing of sticking it to some retailers who can use the web business right now.

 

Needless to say, DW and I will not be doing business with Synchrony, provided they're still around when the dust of uncertainty settles.


Since I am a Synch-paid shrill, I better earn my money!    What people tend to forget is the ease with which they built up these large lines with a single issuer.    They didn't complain then (of course) and basically there is some easy-come easy go logic.   Yes, the issuer should probably never have been so generous with CLs as they were, but then there would have been complaints about toy CLs, rejection for no good reason etc.    If you want "utilization padding" you have to be prepared to lose it when the issuer gets cold feet, they want real use (some non-trivial fraction) of the lines they give and will CLD/close when the risk/reward ratio becomes wrong for them, either on an individual basis or on a set of accounts as a whole.

Message 47 of 1,099
CCrew
Contributor

Re: Synchrony closed all of my accounts today

Beware, Amex is at it also. Nothing new, other than a few old inquiries fell off my report, no recent utilization, I purchased parts for my RV online which was a $439 purchase on a 3yo card with a $10k limit and a $0 balance. Immediately got a message that they slashed my $10k to $1300 and my Magnet card that also had a $0 balance from $3k to $1k. Guess they're paring their exposure. That sucks. 

Message 48 of 1,099
Anonymous
Not applicable

Re: Synchrony closed my accounts


@longtimelurker wrote:

@CreditCrusader wrote:

There are two thoughts circling in my head when I read about Synchrony's recent decision to unexpectedly drop the ax on what appear to be some pretty high-FICO cardholders:

 

1. First the obvious: Those are Synchrony's cards, and therefore they have the right to repossess at their leisure. Much like employers in at-will states who can simply put signs on the doors (provided they don't have any NLRB notification obligations) and lay off employees, card issuers can pretty much yank the rug out from under ANYONE anytime they see fit.

 

2. Also obvious: Synchrony has done this before...and they sent out the same bogus letters with "reasons" for the ambush hatchet jobs. At some point, retailers (many of whom rely pretty heavily on this sort of credit business) are going to tire of this BS and drop Synchrony like a hot potato.

 

Personally, I don't care for store cards. The only one DW and I have is Walmart due to the rewards and the fact that our little neck of the woods doesn't have many places to shop for groceries. But this is going to needlessly hurt the credit profiles of a great many people, to say nothing of sticking it to some retailers who can use the web business right now.

 

Needless to say, DW and I will not be doing business with Synchrony, provided they're still around when the dust of uncertainty settles.


Since I am a Synch-paid shrill, I better earn my money!    What people tend to forget is the ease with which they built up these large lines with a single issuer.    They didn't complain then (of course) and basically there is some easy-come easy go logic.   Yes, the issuer should probably never have been so generous with CLs as they were, but then there would have been complaints about toy CLs, rejection for no good reason etc.    If you want "utilization padding" you have to be prepared to lose it when the issuer gets cold feet, they want real use (some non-trivial fraction) of the lines they give and will CLD/close when the risk/reward ratio becomes wrong for them, either on an individual basis or on a set of accounts as a whole.


There have been plenty who have been shut down for having a balance with Sync too. I don't think there is any definite way to be safe with them so the easy come, easy go mentality is what you have to have when it comes to them. I hope I reduced my exposure enough to avoid AA from them but if they shut me down, they shut me down. The only card I'll be upset about is Amazon but the total loss of $20K in credit would suck. 

Message 49 of 1,099
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