Synchrony Accounts closed without warning

[GreyvyTrain]

The other day I recently asked for and was approved for CLIs for both my CareCredit, and Lowes card. Both always in good standing. I logged on today and both accounts were closed. Speaking to the live chat agent, they were not closed by Synchrony but at some request from the credit bureau? Agent said I would get a letter in the next couple days detailing the reason why, and once I get that I can contact them about reopening those accounts?

For some data points, I haven't had anything negative new pop up on my accounts, and the only recent change besides the CLIs with Synch was me transferring CL of one C1 card to another, but that hasn't even reported yet. I haven't been balance chased. The Lowes card was at 0/5000$ and the CareCredit at 1700/7000$, and that was not a rolling balance, it was paid in full last statement prior to my wife and my dental visits in the last month, which was the 1700$ balance. The agent stated the closures had nothing to do with my standing with Synchrony, so I guess I'm just waiting for a letter to see what's up..

Just curious if anyone else has run into this?

[GreyvyTrain]

Another thing to note is I stay right at, if not below 5% overall UTI, so the only thing that could've scared them would be the credit limit increases they gave me.

[JoeRockhead]

Waiting to see what's in that letter.....

[cashorcharge]

Not a definitive...but did you by chance dispute the inquiries on your CB for that accounts when they were opened?  I've heard of banks closing an account if you disputed the legitimate inquiry for opening the account.  You didn't mention it so perhaps not.

Please update us when the letter arrives.

[Kforce]

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@JoeRockhead wrote:

Waiting to see what's in that letter.....

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^^^^^  This

Unless I have been misinformed the card issuer has all decisions about CL's and closure. 

A "Credit Bureau" provides reports and scores, not recommendations or request.

[coldfusion]

I suspect you may have been gaslit by the CSR.  There may be something that crops up on a report that makes an issuer nervous, but Synchrony wouldn't close cards because a credit bureau asked them to do so.    For completeness you might want to go to annualcreditreport.com and get copies of your 3 major reports to be sure nothing is amiss .

Many examples mentioned on the site over the last few years of Synchrony closing all CC when the cardholder is in good standing, unfortunately one of the recurring themes is that the cardholder recently successfully requested CLIs on multiple Synchrony cards.

[GreyvyTrain]

@coldfusion I've never disputed an inquiry, and haven't disputed anything this year at all, learned my lesson last year poking the bear and had some old COs start reporting again. The only other thing that I could possibly think of, is I've started letting Discover report before paying off, in order to see if I could squeeze past the "Insufficient use of current credit limit" they toss me when I ask, but it is always paid in full after the statement cuts.

I'll update once I get this letter. One other thing I could think possibly, would be the attempted double dip moments after the CLI was approved, but I've seen many people try that, and it actually worked on my last CLI for CareCredit.

[Anonymous]

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@coldfusion wrote:

I suspect you may have been gaslit by the CSR.  There may be something that crops up on a report that makes an issuer nervous, but Synchrony wouldn't close cards because a credit bureau asked them to do so.   

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This.   Even supposing that the credit bureau algorithms showed that you were very likely to default soon, (which presumably would be reflected in the score) there is no financial impact to the bureau if you do.   It's always up to the issuer to decide if a card should be closed, as any potential loss due to a default or  fraud would be theirs.

Now I suppose there could be some cases, such as if they discovered that the SSN on your account was the same as someone with a different name and address on other accounts, this might be flagged to impacted issuers (no idea if it is!) but still the decision as to what to do would rest with the issuers.

[FicoMike0]

I'm sure many of us will be waiting for that letter. Very strange.

[visionsdivine]

You poked the Synchrony bear.

/Thread