Synchrony account closure

[ocheosa]

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@Anonymous wrote:

If these shutdowns are for what Synch perceived as overexposure, I would hope so. I'm not sweating it - I only have the Lowe's card with them, with about a grand on it on 0% financing against a $12k limit. If I had several cards and had them shut down, I'd definitely forego the others to get this one back. Hoping that would be the case if someone who is shut down is thinking the same way.

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@ImTheDevil as an alternate, not sure if you know this but you could simply use your Lowe's membership for the 5% discount. Call up Discover and ask for a 0%/12 month promo, you can request one every year. If available they will add the promo to your account. Discover is very good with their promos, so is Cap 1. So you wouldn't really need the Lowe's card. 

[edit to add: I was informed on another thread that the mylowe's membership program does not discount 5% without use of the card so please accept my apology for giving incorrect advice. Not sure how I got the 5% off, must have been some sort of sign up promo.] 

I have a sneaking suspicion this may have been caused by a fico score error with synchs vantage scoring last month. I was waiting for an update to my report/score so figured I'd test it by refreshing the vantage score (unenrolling/enrolling) through synch to get a general idea and saw that my score had dropped 38pts (sometime btwn Jan 8-Jan18).  I was shocked and knew something was wrong. My transunion and equifax reports showed no changes and I couldn't get my EX report online. Had to request a hard copy via snail mail. Anyway 2 weeks later I did it again for an update and the score went up 30pts, then 3 days later the system refreshed and it went up again another 13pts. Up 5pts from the last months refresh and I confirmed the changes I was looking for had not yet reported so the bug in the reporting system was corrected. So I'm wondering if the system errors somehow flagged certain profiles as being risky which caused the closures. It just seems unlikely that these two factors happening at basically the same time have no correlation. Just a thought.

PS. It's pretty late here so forgive typos/grammar errors.

[GApeachy]

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@GApeachy wrote:

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@DenverFox wrote:

Is there any way I can understand how they made that decision? 

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Sorry this happened.  Have you opened any accts. in the past 3 or 4 months?

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I'll ask again, any new accts? Past inquiries within the last few months? 

OP had a new card open; wondering if you did too.

[Jnbmom]

Well this seems to be happening to a few people all of a sudden, I have been checking my accounts with synch and waiting to see if it's my turn soon.

We are waiting to see what your letters say, but I have a feeling it won't amount to much of an explanation that remotely makes any sense.

Sorry for those getting these closures.

[sto0pyd]

I tried calling and you get CSRs telling you to wait for the letter. They closed 14 accounts for me and only actively used 3, in which accounts were always PIF. I guess now, I will never deal with Synchrony ever again. 

[GApeachy]

With Synch and Comenity I keep it limited to 2 accts., CSRs have said to me that it's not unusual to have as many as 10-15 accts. (Comenity July 2019 said that to me- 15!) so not to sweat what I have; no need to close.  I don't listen to CSR's.....they are there one day and gone the next as far as you know.

If I open one; I close the other like kind of card with lesser limit. I will work my way up doing it one rung on the ladder at a time...not carrying along any dead weight. (eta: and not much of that either)

Don't think they don't know you're just using their available credit for utl. purposes when you're not profitable for them, without any usage in months.  They say you are a risk; we're all a risk. Of course you're a risk; you're a bigger risk x 5, 10, 15.  In one fatal swoope you could go on a bender, rack them all up and check out on them and/or do something like give carte blanche to au's who could do the same....but it is their risk they are sweating, not yours. They gambled on you and you're gambling with their hand.

Those available limits could go to someone new, many new someone(s) instead of sitting stagnant with one person in one sock drawer. They need to keep the profit machine lubed and ready to go.  They may close stating risk (which we all are) but they're in it for the $$$$$$ not your utlization purposes.

[AverageJoesCredit]

I dont buy your limits could be someone else's limit theory. Nothing says that other person can't or wont do what you could do with those lines.  That other person would be subject to the same crazyiness from the bank that you are and its utterly dumb to think if you dont use it you lose it. So long as you use your account responsibly that is what should matter even though it probably doesnt. I will always keep my Sync accounts at pif and should anything happen, they just lose a customer snd i continue with another lender. 

[GApeachy]

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@AverageJoesCredit wrote:

I dont buy your limits could be someone else's limit theory. Nothing says that other person can't or wont do what you could do with those lines.  That other person would be subject to the same crazyiness from the bank that you are and its utterly dumb to think if you dont use it you lose it. So long as you use your account responsibly that is what should matter even though it probably doesnt. I will always keep my Sync accounts at pif and should anything happen, they just lose a customer snd i continue with another lender. 

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What I was getting at above, and not picking on any individual, is that Synchrony can and may be protecting their portfolio(s).  After losing Walmart I would not be surprised that these closures are part in part of them pulling back on available funds from stagnant accts. in order to beef up funds towards new accts. and/or even in a new partnership/Venture down the pipeline. But it's just speculating again.

I've had my old Synch CareCredit closed and is listed on my 3 cr's. "Closed due to inactivity"....so yeah, you don't use; you do lose it. (eventually).   

It's just not surprising that Synch would close accts. that aren't making them money while tying up their funds. They may very well be revamping their portfolio...but who knows? Not us individuals on the outside.  Again, speculation.

As far as risks, yes....anyone, everyone including new consumers are a risk. So if they are going to set aside funds for your accts. they want to see a profit, it's just business.

So I think it's not that OP or any others did something wrong...maybe other than having too many accts with Synch; I believe it's Synch doing a financial move to secure what Synch feels is in their best interest; not necessarily yours. Hence the vagueness. That's all.

[tcbofade]

If it IS simply a "you have too much available credit that you're not using", I'll expect my shut down any day now...

[DenverFox]

Hi everyone,

I have some late-breaking information I wanted to share. When I called in and inquired about the closures, they said it likely had something to do with my FICO which I knew was not true. I just received the 4 account closure letters today and indicated after account review they have decided to close my account. The explanation on each is as follows:

"Activity on account(s) with SYNCHRONY BANK indicative of high risk of failure to repay"

Just to recap, there has been no recent activity on my accounts. Historically, I have gone in to all of them every 3-5 months and requested a CLI (soft pull) and they have bumped them. They had recently bumped by CareCredit to 20k.

The limits and cards they closed all had a zero balance and perfect payment history. They are as follows:

Care Credit - 20k

Lowes - 35k

Discount Tire - 10k

Amazon - 10k

In the end, the only reasonable explanation is I had them do CLIs multiple times a year against multiple cards without actually needing or using the higher limit.

Hope this helps. The good news is since the balance was already zero, it didnt hurt my score at all when it reported. 

Brian

[FinStar]

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@DenverFox wrote:

Hi everyone,

I have some late-breaking information I wanted to share. When I called in and inquired about the closures, they said it likely had something to do with my FICO which I knew was not true. I just received the 4 account closure letters today and indicated after account review they have decided to close my account. The explanation on each is as follows:

"Activity on account(s) with SYNCHRONY BANK indicative of high risk of failure to repay"

Just to recap, there has been no recent activity on my accounts. Historically, I have gone in to all of them every 3-5 months and requested a CLI (soft pull) and they have bumped them. They had recently bumped by CareCredit to 20k.

The limits and cards they closed all had a zero balance and perfect payment history. They are as follows:

Care Credit - 20k

Lowes - 35k

Discount Tire - 10k

Amazon - 10k

In the end, the only reasonable explanation is I had them do CLIs multiple times a year against multiple cards without actually needing or using the higher limit.

Hope this helps. The good news is since the balance was already zero, it didnt hurt my score at all when it reported. 

Brian

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Thank you for providing some DPs with your experience @DenverFox.

Outside of SYNCB, have you had any historical higher than normal balances on your other CCs (i.e. prolonged or stagnant, whether due to BTs or standard transactions)?

You mentioned that an agent had relayed (although not confirmed with certainty) something about your scores - have they deteriorated or remained constant for the past 6-12 months?

It's certainly perplexing, but it is possible, although no one knows for sure whether the repeated CLI attempts may have been tracked for a period of time.  So, for context, in a period of 12 months, for all your SYNCB accounts, what is the aggregate total you were approved as far as CLIs?

I cant recall the last time I tried...well, not since I hit their max exposure cap back in mid-2017.  Then it made it worse with the PPC transition (but it had to go...and traded it for the Belk MC 😜).   @UncleB was the big influence on that one, well because...he has one and I shop there 🤷‍♂️