Synchrony Accounts closed without warning

[SouthJamaica]

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@GreyvyTrain wrote:

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?

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I'm pretty sure they were not closed in response to a "request from the credit bureau". Synchrony is notorious for abruptly closing accounts without warning, usually without any logical reason.

[Anonymous]

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@SouthJamaica wrote:

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. Synchrony is notorious for abruptly closing accounts without warning, usually without any logical reason.

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Without any logical reason that is 

a) obvious to us and

b) we assume that the information provided in posts is correct and complete

Presumably Synchrony has data to show whether their approach is worth it (presumably minimizing loss at some expense to revenue)

[moneyworldcuriousity]

Search the Internet for phrases such as SYNCHRONY CREDIT or SYNCHRONY CLOSURE or SYNCHRONY REVIEWS. Then you may see hundreds or even thousands of postings about SYNCHRONY that you will not be happy seeing. That includes the US, Canada AND the U.K.-!! There was at least one posting from a Financial business source that noted Synchrony appeared to be closing or SIGNIFICANTLY DECREASING "AVAILABLE" CREDIT LIMITS & in turn SIGNIFICANTLY INCREASING APR's on the account holder's remaining cards based on the obviously much much much lower FICO SCORES that resuled from "account closures" or "reduced available credit limits". PS - Another FINANCIAL RESOURCE noted that about 20% of Synchrony's REVENUE -- WAS FROM LATE FEES - as compared to about 12% of all other credit card companies-!! Wow!! 

[Anonymous]

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@moneyworldcuriousity wrote:

- Another FINANCIAL RESOURCE noted that about 20% of Synchrony's REVENUE -- WAS FROM LATE FEES - as compared to about 12% of all other credit card companies-!! Wow!! 

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While this is presumably intended to bash Synchrony, a) the difference isn't THAT big and b) 12% on average is much bigger than I would have guessed.  I would have expected the combination of swipe fees, interest and annual fees to be more than 88%

ETA: But I would be wrong.  Federal Register :: Credit Card Penalty Fees (Regulation Z)

Some Larger Card Issuers may be disincentivized to lower late fee amounts below the safe harbor, given that the industry as a whole continues to rely on late fees as a source of revenue and many consumers may not shop for credit cards based on the amount of the late fee. For the Larger Card Issuers in the Y-14+ data, late fees represented 10 percent of charges to consumers in 2020, but individual card issuers' revenue from late fees varied.[43] The share of late fees for Larger Card Issuers in the Y-14+ data ranged from approximately five to 30 percent of total consumer charges in 2019. Among issuers there is a strong correlation between reliance on late fees and concentration of subprime accounts. Yet, the industry as a whole continues to rely on late fees as a source of revenue.

Good point about consumers in general not shopping based on late fees.   

[NoMoreE46]

You might be another victim of  Sync slashing CL  @GreyvyTrain ....

I know you are a ~ 5% UTI now, but would you provide a  breakdown of the balances owed to each issuer from your sig?

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@GreyvyTrain wrote:

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?

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[GreyvyTrain]

@NoMoreE46  Sure! 

BofA (AU) - $0/30000

Cap1 Venture1 - $0/500

Cap1 Savor1 - $96/1500

Credit one - $0/700

Discover - $10/1800

Chase AMZN - $0/1500

Kohls - $0/1500

Merrick - $0/1100

SECU - $1560/15000

Aspire - $0/1000

Closed Lowes - $0/5000X

Closed CareCredit - $1650/7000X

Also have a student loan amount of 589$ as of right now.

I got another rep today at ol' synch, and they said that my accounts were closed due to a "Routine account review." and because something regarding my credit/loans on my report has changed. A note to add, the account was closed right at its 1 year mark, tomorrow would've been the one year mark of me opening carecredit. Still waiting on that letter, and there is nothing newly negative on my reports besides the 3 COs in 2019. My scores have actually risen now that both of those accounts reported as "closed, never late"(carecredit) and "paid/closed, never late"(lowes). Both with remarks at request of credit grantor of course. Went up roughly 3-5 points per bureau.

[NoMoreE46]

Thanks for the DPs.   As an old friend used to say,  you got 'rooked.' 

Sorry @GreyvyTrain ...

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@GreyvyTrain wrote:

@NoMoreE46  Sure! 

BofA (AU) - $0/30000

Cap1 Venture1 - $0/500

Cap1 Savor1 - $96/1500

Credit one - $0/700

Discover - $10/1800

Chase AMZN - $0/1500

Kohls - $0/1500

Merrick - $0/1100

SECU - $1560/15000

Aspire - $0/1000

Closed Lowes - $0/5000X

Closed CareCredit - $1650/7000X

Also have a student loan amount of 589$ as of right now.

I got another rep today at ol' synch, and they said that my accounts were closed due to a "Routine account review." and because something regarding my credit/loans on my report has changed. A note to add, the account was closed right at its 1 year mark, tomorrow would've been the one year mark of me opening carecredit. Still waiting on that letter, and there is nothing newly negative on my reports besides the 3 COs in 2019. My scores have actually risen now that both of those accounts reported as "closed, never late"(carecredit) and "paid/closed, never late"(lowes). Both with remarks at request of credit grantor of course. Went up roughly 3-5 points per bureau.

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[GreyvyTrain]

@NoMoreE46 No worries, I wasn't using the Lowe's and while the CareCredit helped out a little, I was always thinking there's gonna be one day where I miss the ending of one of those promotional balances, and the amount doubles back up on me. Two less cards to worry about as I lay low waiting on these COs to age off. Figure if I do heavy spend accompanied by heavy payments on the Chase card, might get me somewhere with them.

[NoMoreE46]

Good for you.  Yes- focus your spending on the Disco and Chase.   They can grow big  (my Chase Prime went from $6000 to $20500)   and more importantly, you won't typically have to go through these types of "reviews" with them.

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@GreyvyTrain wrote:

@NoMoreE46 No worries, I wasn't using the Lowe's and while the CareCredit helped out a little, I was always thinking there's gonna be one day where I miss the ending of one of those promotional balances, and the amount doubles back up on me. Two less cards to worry about as I lay low waiting on these COs to age off. Figure if I do heavy spend accompanied by heavy payments on the Chase card, might get me somewhere with them.

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[xenon3030]

Synchrony possibly did a favor to you that closed them sooner rather than later. Enjoy doing your business with the other credible lenders.

Not sure whether somebody can do any risk to take mortgage with these guys