Can Synchrony Bank Sue You for Credit Card Debt

Synchrony Bank can sue you for credit card debt, but it's not a straightforward process. They'll typically send you multiple letters and phone calls before taking you to court.

If you ignore their attempts to contact you, Synchrony Bank may send your account to a collections agency, which can further damage your credit score.

You can expect to receive a lawsuit from Synchrony Bank if you've missed payments for an extended period, usually 180 days or more.

The court will then notify you of the lawsuit, giving you a chance to respond and potentially settle the debt.

Synchrony Bank's debt collection process can be intimidating, but responding to a lawsuit is the best course of action. Ignoring their attempts to collect will only lead to further action.

If you're sued for credit card debt, Synchrony Bank will likely contact you through their in-house collections and billing department. They don't hire collection agencies, which might explain the numerous complaints about their debt collection practices.

If you never authorized the charges, you're not responsible for them, and you shouldn't be held accountable. As a co-signer, you might be liable, but that's a different situation altogether.

Synchrony Bank does sue for credit card debt, and if you've defaulted on payments, you can expect collections to start contacting you.

Ignoring Synchrony Bank's attempts to collect its debt is not a good idea, as many people who respond correctly to a credit card debt lawsuit get the debt removed because the credit card company couldn't prove its case.

Synchrony Bank has its own debt collection department, referred to as Synchrony Financial's in-house collections and billing department, so you won't see collection agencies showing up.

You can respond to a lawsuit by filing an Answer, which doesn't mean you're committing to paying the debt, but rather expressing interest in seeing the information Synchrony Bank has to prove you owe the debt.

Filing an Answer is the first step in defending yourself, and it's made easy by services like SoloSuit.

If you never authorized the charges, you are not responsible for them. Period. The only exception is if you are a co-signer on someone else's account and that person made the charges.

Unauthorized charges can sneak up on you, but knowing your rights can help you take control. If you're being sued for unauthorized charges, you can fight back.

You don't have to pay for charges you didn't make. If you receive a lawsuit for unauthorized charges, respond promptly to avoid default judgments.

The key is to be proactive and take action as soon as you notice unauthorized charges on your account.

Synchrony Bank credit agreements have a mandatory arbitration clause that allows consumers to force a debt lawsuit out of court and into arbitration. This clause is stipulated in each Synchrony Bank contract, which can be accessed on the CFPB website's Synchrony credit card agreement database.

The arbitration process is expensive, and creditors like Synchrony are usually responsible for all costs. This means that when you compel arbitration, there is a good chance that Synchrony would rather drop the case.

You can also sue Synchrony Bank in class-action lawsuits, which allow consumers to be paid what they are owed for the suffering and damages they incurred as customers. A CFPB study on arbitration confirmed that consumers lose more than they win in private hearings, and the process lacks an appeal provision.

Here are two options to sue Synchrony:

Most credit card issuers, including Synchrony Bank, have a mandatory arbitration clause in their credit agreements. This clause allows consumers to force a debt lawsuit out of court and into arbitration.

The arbitration clause is stipulated in each Synchrony Bank contract, which can be accessed on the CFPB website's Synchrony credit card agreement database. Consumer advocates believe that credit card companies include this clause to protect themselves from wrongdoing, rather than to avoid lengthy court processes.

Consumers can take disputes into a private panel, also known as arbitration, instead of proceeding to court. A CFPB study on arbitration confirmed that consumers lose more than they win in these private hearings. The process also lacks an appeal provision, and credit card companies are not required to enforce consumer protection laws.

Broaden your view: Commercial Banking vs Consumer Banking

Arbitration can be a costly process, but creditors like Synchrony are usually responsible for all costs. This can be a good opportunity for consumers to force Synchrony to resolve the dispute through arbitration, which may lead them to drop the case.

Here are two options for consumers to consider:

If you're considering arbitration, make sure to check your contract or user agreement with Synchrony to see if you can take them to arbitration. Many companies' standard contracts are available on their websites, and you can do a search for "arbitration" within the contract text.

Synchrony Bank has recently allowed class-action lawsuits to progress after accepting responsibility for long-standing complaints.

Consumers can sue Synchrony Bank and receive a reasonable percentage of the total money owed to the bank. Many consumers have successfully sued Synchrony Bank, with a majority winning their cases.

A notable example is the 2020 class-action lawsuit filed by a Gap Inc and Banana Republic credit card holder, who claimed that his reward points were unlawfully deleted.

The plaintiff alleged that he was misled by the unfair and deceptive marketing of the card company, and he wouldn't have signed up for the card if he knew Gap would wipe out his reward points.

Synchrony Bank was also ordered to pay $3.5 million in a 2021 class-action lawsuit filed by California debtors who complained about frequent harassing calls from Synchrony Bank collections.

This case ended on November 9, with Los Angeles Judge Rupert A. Byrdong issuing the ruling.

You can also sue Synchrony Bank in small claims court, but you'll need to have a strong case against them.

The maximum monetary compensation in small claims court varies by state, ranging from $2,500 to $20,000.

You can sue Synchrony Bank if you've been mistreated as a customer, such as receiving annoying robocalls or dealing with rude representatives. The Fair Trade Commission (FTC) got involved and sued Synchrony Bank collections to hold them accountable.

Many consumers have already sued Synchrony Bank, and a majority have won their class-action lawsuits. One example is a Synchrony Bank class-action lawsuit in 2020 filed by a Gap Inc and Banana Republic credit card holder who claimed his reward points were unlawfully deleted.

You can also sue Synchrony Bank in small claims courts, but ensure you have a strong case against them. The difference between small claims court and other civil courts is that there's a limit to the amount of money you can receive for damages, ranging from $2,500 to $20,000 depending on your state.

To sue Synchrony Bank in small claims court, you'll need to explain why you're suing and provide evidence. This can be a good option if you prefer to avoid the arbitration system.

Before you can sue Synchrony Bank, you need to verify that your claim qualifies for small claims court. You can usually only ask for monetary compensation, and there are limits to the amount of compensation you can ask for. These limits vary by state, so be sure to check your state's limits.

Here are the limits to the amount of compensation you can ask for in small claims court, depending on your state:

If your claim doesn't qualify for small claims court, you still have options. You can consider filing a claim and going through binding arbitration.

If you're facing a lawsuit from SYNCB/PPEXTR, it's essential to respond to the lawsuit, even if you can't afford to pay the debt. Ignoring the lawsuit can lead to a default judgment, which can result in a judgment that far exceeds the original debt.

Responding to the lawsuit prevents the company from receiving a default judgment, which can give the creditor the right to levy your bank account or garnish your wages. This can be a terrible result, especially if you're low on money.

You can use SoloSuit to make it simple to respond to the lawsuit in the right way. The answer should demand that the company prove you owe the debt and assert any affirmative defenses. If the company can prove you owe the money, it may be wise to settle out of court.

Focusing on affirmative defenses and negotiating for a lower settlement often works best, especially since SYNCB/PPEXTR is an original creditor and is more likely to have the paperwork needed to prove you owe money. By responding to the lawsuit and asserting affirmative defenses, you gain the leverage you need to obtain a productive settlement agreement.

Ignoring Synchrony Bank's attempts to collect its debt is not the best move, as many people who respond correctly to a credit card debt lawsuit get the debt removed because the credit card company could not prove its case.

Removing items from your credit report can be a daunting task, but it's essential to take control of your credit score. A debt entry by Synchrony Bank can harm your credit score for seven years if you don't plan to have it removed.

You can take action to have the debt removed from your credit report by sending a Debt Validation Letter to Synchrony Bank. This letter requires them to verify the debt belongs to you.

If you still question the debt, you can investigate and dispute it with TransUnion, Equifax, and Experian. They will consult with Synchrony Bank and remove the debt from your report or correct the inaccurate sections.

A pay-for-delete agreement can be requested, which means Synchrony Bank commits to deleting the debt from your credit report once you pay the agreed amount.

You can also ask for a goodwill deletion, but Synchrony Bank has no legal obligation to delete the debt after you pay. They are only required to change the status from unpaid to paid.

Here are the steps to take:

If you're facing a lawsuit from SYNCB/PPEXTR, the original creditor, it's essential to respond to the lawsuit to prevent a default judgment. Responding is even more important if you lack funds, as it prevents the company from receiving a default judgment.

You should file an answer to the lawsuit, demanding that the company prove you owe the debt and asserting any affirmative defenses. If the company can prove you owe the money, it may be wise to settle out of court.

If you're unable to settle out of court, you have two options to sue Synchrony: Consumer Arbitration or Small Claims Court. To access Consumer Arbitration, check your contract or user agreement with Synchrony to see if it's mentioned.

Here are the details of each option:

In Small Claims Court, you'll need to appear in person and complete necessary forms. Your job is to make sure you explain why you sought to sue Synchrony Bank in small claims court and provide any evidence you have.