Being in credit card debt can take an emotional toll, even more so if you’re unable to make your minimum payment and your card issuer takes legal action against you. If you’re sued by Synchrony Bank for your credit card debt, you still have options. Keep reading to learn more about how Synchrony Bank operates and what to do if you’re sued because of your debt.
Who is Synchrony Bank?
Synchrony Bank is a major consumer financing company that plays a key role in the retail credit card space. If you have credit card debt with Synchrony Bank, it’s important to understand what the company does and what to look out for.
Is Synchrony Bank Legitimate?
Yes, Synchrony Bank is a legitimate company. It’s chartered and regulated by the Office of the Comptroller of the Currency, is certified by the FDIC, and operates in all 50 states.
Overview of Synchrony Bank
Synchrony Bank is a consumer financing company headquartered in Stamford, Connecticut, that’s been in business for more than 90 years. The company has roughly 70 million customer accounts and more than 18,000 employees. With a special focus on retail credit cards, Synchrony has the sixth-largest credit card portfolio of any bank.
Synchrony Bank Reviews and Complaints
Synchrony Bank isn’t accredited or rated by the Better Business Bureau (BBB). It has an average customer rating of just 1.05 out of 5 with the BBB and 1.1 out of 5 on Trustpilot.
The company also has many customer complaints. It has more than 8,000 complaints with the BBB, and nearly 2,800 of those are from the past year alone. It also has nearly 30,000 complaints with the Consumer Finance Protection Bureau. The majority of those complaints are directly related to its credit cards, credit reporting and debt collection practices.
Understanding How Synchrony Bank Operates
Synchrony is primarily a credit card issuer. While it has a few of its own branded cards, it specializes in partnering with other brands to offer retail credit cards.
Its co-branded cards include those from Venmo, Amazon, Lowe’s, Mattress Firm, Sam’s Club, JCPenney, Verizon, J.Crew, Walgreens, Ashley Furniture, and more. If you have a credit card from any of these retailers, Synchrony Bank is your card issuer.
In addition to its credit cards, Synchrony also offers buy now, pay later services, which allow you to make a purchase and pay it off over a series of installment payments. Its “Pay in 4” program allows you to pay for your purchase interest-free over a period of six weeks, while its “Pay Monthly” program lets you pay in equal monthly payments with interest.
Dealing with Synchrony Bank
If you have a credit card through Synchrony Bank, it’s important to understand your rights as a borrower and what you should do if the company contacts you.
What Should I Do If I Receive a Letter or Call from Synchrony Bank?
If you receive a letter or phone call from Synchrony Bank, first verify it’s coming from the bank. The financial industry is frequently the target of scams, and you should always double-check that the communication is legitimate.
The best way to verify the letter or call is to compare the contact information they provide to what’s listed on Synchrony’s website. If you still aren’t sure, call the company using the phone number listed on its website — they’ll confirm whether they’ve reached out.
The next thing you should do, especially if you’re contacted about an unpaid debt, is to request a debt validation letter. Federal law requires lenders to validate debt in writing within a certain amount of time after reaching out to a consumer. Once you receive the debt validation, you can compare it to your own records to make sure the information is correct.
Handling Communications from Synchrony Bank
If Synchrony Bank contacts you, make sure to keep a record of any phone calls, letters, or emails. Whether it’s in the form of an actual copy of the letter or email, or thorough notes from a phone call, these records may come in handy if Synchrony Bank sues you or if there’s a dispute about how much debt you owe.
Knowing Your Rights Against Synchrony Bank
The Federal Debt Collection Practices Act (FDCPA) limits how and when debt collectors can contact you about your debt.
For example, the FDCPA prohibits debt collectors from contacting you early in the morning or late at night, at times they know are inconvenient to you, or while you’re at work, if they know such communication isn’t allowed at your workplace. They’re also limited to what information they can share with others about your debt.
Next, the FDCPA prevents debt collectors from engaging in unfair or abusive collection practices, including harassing, threatening, or misleading you.
You also have the right to hire an attorney to represent you. And if a debt collection law firm knows you have an attorney, they must direct all communication to your attorney instead of you.
Creditors are also subject to the Fair Credit Reporting Act, which gives you the right to dispute information on your credit report that you believe to be inaccurate. If Synchrony Bank provides incorrect information to the credit reporting agencies, those agencies have a responsibility to remove it from your credit report.
The Legal Side of Synchrony Bank
Common Legal Issues with Synchrony Bank
If you stop making your credit card payments to Synchrony Bank, the company may sue you to collect the debt.
You don’t have to worry about getting sued after just one missed payment — they probably won’t take legal action until you’ve been in credit card default for around 180 days. But they may start collection efforts even earlier than that, including making collection calls, sending letters, or even selling your debt to a debt collection agency, which may then try its own collection efforts.
If you’re sued in court and have a judgment issued against you, the court could take action to enforce the debt collection, possibly even garnishing your wages or placing a levy on your bank account.
What Happens If You Get Sued by Synchrony Bank
If you’re sued by Synchrony Bank, here’s a step-by-step guide to what you can expect to happen and what actions you should take in response.
- Receive the complaint: When Synchrony Bank files a lawsuit against you, you’ll receive a summons and complaint, which lays out Synchrony’s claims against you and requests that you respond.
- Consult an attorney: Before taking any next steps, consult a debt relief attorney. They can take a look at your situation and advise you on the best course of action to respond to a debt collection lawsuit.
- Respond to the complaint: Most consumer debt complaints require you to respond, also known as filing an answer, within 20-30 days. Don’t miss this deadline, as it could result in a default judgment against you.
- Go through discovery: During discovery, you and Synchrony can both gather information from each other that may be relevant for the trial.
- Negotiate with Synchrony: You can negotiate with Synchrony to try to settle your debt outside of court. If you’re able to settle, you can usually pay less than the full amount you owe, but you may have to make a lump-sum payment.
- Go to trial: If you’re unable to settle your debt with Synchrony, you’ll have to go to trial. The good news is you’ll still have the opportunity to defend yourself in court or raise any counterclaims that could have the case dismissed.
How to Negotiate with Synchrony Bank
If you want to avoid going to court and having a judgment issued against you, you can negotiate directly with Synchrony Bank to settle your debt. When you settle, you typically agree to pay less than your total account balance, either as one large payment or as a series of payments. In exchange, Synchrony agrees to forgive the rest of your debt.
There’s no guarantee of success when you’re trying to settle your debt, but here are some steps that may help you increase your chances:
- Gather documentation: First, gather any relevant documentation about your debt and the lawsuit, including your own records and anything you’ve received from Synchrony.
- Review your debt situation: Make sure you know the exact nature of the debt, including how much you owe, the total fees and interest, your interest rate, etc.
- Propose a settlement: Have a number in mind that you’re willing to pay to settle the debt. In some cases, if your lender won’t budge on the balance, they may be willing to negotiate a lower interest rate or fees.
- Document everything: Throughout the process, make sure you keep thorough records, including any letters or emails, as well as notes from any phone calls.
- Hire an attorney: Consider hiring a debt settlement attorney who will negotiate with Synchrony on your behalf, possibly increasing your chances of success.
How to Protect Against Synchrony Bank
Steps to Take If You’re Contacted by Synchrony Bank
If you’re contacted by Synchrony Bank about your credit card debt, here are the first steps you should take:
- Verify the identity: First, make sure it’s really Synchrony Bank contacting you and that it’s not a scam.
- Request a debt validation: Ask Synchrony Bank to send a debt validation letter. They’re required to do this within five days of contacting you about your debt.
- Consult an attorney: If Synchrony has sued you or you’re worried they might sue you, consult an experienced debt attorney for help with your situation.
- Decide on your next steps: Decide what steps you’ll take next, such as paying off the debt, negotiating a settlement, or going to court.
Filing a Complaint Against Synchrony Bank
Just as you have responsibilities to Synchrony Bank as a borrower (paying your debt, for example), the financial institution also has responsibilities to you. If you believe Synchrony has breached your contract or you believe they have violated your rights under the law, consider filing a complaint at one of these places:
- Consumer Financial Protection Bureau (CFPB)
- Federal Trade Commission (FTC)
- State Attorney General
- Better Business Bureau (BBB)
Synchrony Bank Phone Number and Address
The easiest way to contact Synchrony Bank’s customer service is in your online credit card account using the online chat or email features. If you can’t access your Synchrony account or want a more immediate approach, you can call the company at 1-866-419-4096.
How Can a Debt Settlement Attorney Help?
Facing a debt lawsuit can impose both a financial and emotional burden. Working with an experienced debt professional can help to alleviate some of that burden. A debt relief attorney can guide you through the collections process, from validating your debt to negotiating with your creditor to, if necessary, going to court.
Tayne Law Group has experienced debt relief attorneys who regularly help those struggling with their debt. If you want to explore your options, contact our offices by calling (866) 890-7337 or filling out our short contact form. We never share or sell your information, and all conversations are confidential.
FAQs
What happens if you don’t pay your Synchrony credit card?
If you don’t pay your Synchrony credit card bill, the company is likely to start collection phone calls and emails. They may sell your debt to a collections agency or take legal action against you. The longer it takes you to resolve the situation, the more interest and late fees will accrue.
What happens if Synchrony Bank sues you?
If Synchrony Bank sues you, it’s important that you respond to the complaint by the due date to avoid a default judgment being issued against you. Once you’ve responded, you can try to negotiate with Synchrony or prepare a defense for trial.
How can I avoid going to court with credit card debt?
You can often avoid going to court with credit card debt by negotiating a settlement ahead of time. Your creditor probably doesn’t want to go to court any more than you do, and they may be willing to agree to a suitable settlement amount.
Will Synchrony Bank settle a debt?
Synchrony Bank may settle a credit card debt to avoid going to court, especially if you’re willing to pay the majority of the debt. However, there are no guarantees. Synchrony could decline your settlement agreement and insist on going to court instead.
