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Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Lawsuit?

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SouthJamaica
Mega Contributor

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws


@GApeachy wrote:

@markhs777 wrote:

The term "settled "doesn't necessarily denotes negatively. 

 


I'm pretty sure it does.  Taken from Experian, search "settled":

 

"Settled Accounts Remain on Your Credit Report for Seven Years

When you settle, the account will not be removed immediately from your credit report. If you were late on payments, the account will remain on your credit report for seven years from the original delinquency date.

If the account was positive, meaning there are no late payments in the account history, the account will remain on your report for seven years from the date it was settled."

 

"It is always better to pay off your debt in full if possible. While settling an account won't damage your credit as much as not paying at all, a status of "settled" on your credit report is still considered negative."


Correct. A report that an account has been "settled" is a very severe negative.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 21 of 32
GatoradeZeroGuy
Valued Contributor

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws

regardless, it's incorrect, so they need to fix their reporting immediately and I hope OP can get this resolved relatively quickly

Starting FICO 8:

Current FICO 8:

1/6, 5/12, 12/24




Message 22 of 32
Jeffster1
Valued Contributor

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws

As far as the inaccurate reporting is concerned, this happened to me with Synchrony. 

I had a JCP account which I IIB. I paid 100 percent in my Chapter 13. Synchrony inaccurately reported it as a charge-off. I kept disputing but they kept verifying. Then, they suddenly changed the status to "Settled." 

I emailed every Synchrony executive I could find. They deleted the entire tradeline in about a week. 

Good riddance to Synchrony. Never again. 

FICO 8 (1/21/24) EX 805 EQ 720 TU 844
FICO 9 (2/17/24) EX 821 EQ 778 TU 850
CH 13 DC 1/5/21 -- I practice AZEO - NEVER above 1% utilization across all cards.

Current lineup as of 9/23
American Express Gold | American Express Blue Cash Everyday 6K | American Express Blue Cash Preferred 5K I American Express Marriott Bonvoy Bevy 5K I American Express Gold Delta Skymiles 6K I American Express Hilton Honors Surpass 1K | Bank of America Customized Cash Rewards Visa 15K | Kinecta MyPerks Rewards MC 35K | TD Bank Double Up Visa 4K | USBank Platinum Visa 5K | BMO Harris Cash Back MasterCard 12K | Capital One SavorOne MC 3K | Capital One Walmart MC 2K | NFCU Amex 15K | NFCU CashRewards Visa 15K I Citi Best Buy Visa 10K I Macy’s Amex 1.5K I Bread Financial American Express 8K l AAA Daily Advantage Visa Signature 6K I Wells Fargo BILT World Elite MC 30K I BCU Cash Rewards Visa 8K I Chevron Techron Advantage Visa 2.5K I JCPenney Mastercard $6K I UCLA Wescom CU Rewards Visa 7K I Affinity Pure Rewards Visa 5K
Message 23 of 32
markhs777
Regular Contributor

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws


@SouthJamaica wrote:

@GApeachy wrote:

@markhs777 wrote:

The term "settled "doesn't necessarily denotes negatively. 

 


I'm pretty sure it does.  Taken from Experian, search "settled":

 

"Settled Accounts Remain on Your Credit Report for Seven Years

When you settle, the account will not be removed immediately from your credit report. If you were late on payments, the account will remain on your credit report for seven years from the original delinquency date.

If the account was positive, meaning there are no late payments in the account history, the account will remain on your report for seven years from the date it was settled."

 

"It is always better to pay off your debt in full if possible. While settling an account won't damage your credit as much as not paying at all, a status of "settled" on your credit report is still considered negative."


Correct. A report that an account has been "settled" is a very severe negative.


I surely tend to agree with you yet in the same quote it states:

 

"If the account was positive, meaning there are no late payments in the account history, the account will remain on your report for seven years from the date it was settled." When "settled it could in theory just mean the debt will be paid as agreed upon until proven otherwise yet I certainly would do everything possible to remove that notation.

 

sort of contradictory 

Message 24 of 32
sauciefarr
New Contributor

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws


@onr wrote:

Hello guys, 

 

So there is a serious problem with Synchrony bank.

-I have 750 credit score. Using Synchrony cards everyday since 2016 and pay full balance every month.

-I never had any late payment with Synchrony or any other bank card, loans etc. Everything is on time.

-I have a very clear credit report with only %8 utilization that are always paid in full every month.

 

2 days ago I woke up with bunch of emails. Synchrony closed all of my accounts for nothing. Called customer service and they were even confused why it is happened.

 

Amazon store card $590 balance of $20000 limit.

Paypal Mastercard $350 balance of $20000 limit.

Ebay Mastercard $1.87 balance of $10.000 limit

Synchrony car care $1400 balance of $10.000 limit

Adorama Edge card $0 balance of $3500 limit

Paypal credit $950balance of $5000 limit

Sweetwater card $1200 balance of $6000 limit (They approved this card 2 days before closing all the accounts)

 

Now dilemma starts here; 

 

Cards with balances reported to my credit reports as ''settled amount'' I've got an email from Chase Credit Journey says;

 

"It looks like you settled an account with a lender. When you settle an account, you negotiate a lump-sum payment with your lender to pay back part of what you owe so that the rest is forgiven."

 

For those balances statement not even closed yet. I did not even get the statements to pay the balances.

 

-I never wanted to close the accounts.

-I never attempted not to pay the balances or never attempted to negotiate for settlement.

 

Did anybody have and experience like this before? Would it be a possible lawsuit? I don't know where to start. I've never ever experienced anything like this before. 

 

Any thoughts?

 


Two years ago, I received two preapproved offers for Synchrony credit cards within a couple of weeks --- one was their Premier World Mastercard, and the other was Venmo Mastercard.  I accepted both cards.  I know, I know -- I POKED THE BEAR!!  Within three or four weeks, all of my Synchrony cards were shut down (about $65K in limits), including the new Mastercard.  I never even got to use it!  Oddly enough, they left the Venmo account open.   It's still open, with a $20K limit.

 

NONE of those closed accounts were notated "settled".  I think there was a balance on maybe two or three cards (they closed 8 or 9 cards as I recall).  They sent statements as usual and I paid them. My credit score dropped maybe 20 or 30 points, but that came back up in a few months.  I don't believe I have ever heard of this "settled" scenario with regard to Synchrony.  What did they say at the credit bureaus??

6/26/2023. FICO 8 EX 793; EQ 790; TU 792. AMEX Platinum NPSL; AMEX Gold NPSL; AMEX Cash Magnet 10,000; PenFed PCR Visa 12,500; PenFed Pathfinder 15,000; PenFed Gold Visa 10,000; PenFed LOC 10,000; Macys AMEX 25,000; Home Depot 25,000; NFCU Plat Visa 19,200; NFCU Plat MC 10,000; USAA AMEX 6000; USAA Cash Rewards Visa 20,000; IKEA 14,500; Overstock 18,500; Venmo Visa 20,000; SamsClub MC 17,000; Discover 17,600, Citibank Aadvantage MC 9800; Pottery Barn 19,700; Williams-Sonoma $15,000; FNBO VISA $9000; Sportsman's Guide VISA $9900; Sephora VISA $9400
Message 25 of 32
GApeachy
Super Contributor

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws


@onr wrote:

I did all the disputes and complants. Took a lot of time.

I'm going to provide all new information and update everyone.

 

And yes, Synchrony has extremly poor risk management. That was a great lesson for me. I would never never ever open any account from non-major creditors again. They are super "risky creditor" for the consumer.


Any update(s)?

My Take Home Pay Don't Take Me Home
Message 26 of 32
Jrobertson1998
Established Member

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws

Could it be possible that you may have had returned payments recently? The same thing happened to me about a year ago. Their customer service said was because I had two or more returned payments. Synchrony HATES returned payments, just two over the lifetime of your accounts results in automatic account shut down is what I was told. Thankfully, I didn't have much exposure with them, just an Amazon Store Card and a Paypal Cashback Rewards. Both under 5k.

Message 27 of 32
coldworld
Regular Contributor

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws


@markhs777 wrote:

Obviously the bank has every right to close any account it wants. The term "settled "doesn't necessarily denotes negatively. 

Going forward you may actually incur a more difficult path for additional credit however only a legal professional can determine if indeed Synchrony has any liability.


In terms of settle accounts, your statement is grossly inaccurate. 

3B Scores 02/2024

----

Message 28 of 32
xenon3030
Valued Contributor

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws

Welcome to the club of closed Synchrony accounts without notice!!! You can find several posts mentioning this issue in various forums and it is not new. It is happening for several years.

 

You definitely need to fix the closing notes by the lender ASAP. There are several reliable lenders in the town with excellent credit card products and you can get whatever you need (after fixing the notes by the lender). Having 7 cards with a lender looks to be a high risk plan. I would distribute my cards between multiple lenders and try to use multiple of them. If you prefer cashback, it is possible to gain ~3-5% easily using a few cards on daily expenses and you do not need to obtain several store cards.


Fico8: EX~EQ~TU~810 (12 month goal~840).
BOA (CCR, UCR), Chase (CFF, CSP, Amazon, CIC), US Bank (Cash+, AR, Go, Ralphs), Discover, Citi (CCC, DC, SYW), Amex (BCP, HH, Biz Gold, BBC), Affinity CR, Cap1(Walmart), Barclay View.
Message 29 of 32
JB2
Contributor

Re: Synchrony closed 7 accounts same day, reported card balances as ''settled amount'' Possible Laws

A few years ago synchrony closed all my accounts without notice.  I went to use one of them and it denied.  Took me by surprise since my limits were all high and never a late payment, always paid over the minimum.  I told them I would never do business with them again because they obviously didn't need my business.  I don't think my score even dropped but a few points for a couple weeks then it went even higher.  They didn't report settled though it was just closed. 

Chase Freedom Unlimited, Chase Slate, Chase Sapphire Premium, Macys, Walmart, Meijer , Best Buy, Credit Union, Amazon Visa, 3 Penfed, 3 Fnbo,2 Boa, Discover, Cabelas, 2 US Bank, 2 Citibank, 2 Amex, Syw visa
Message 30 of 32
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