Synchrony Bank Charge Explained: What You Need to Know

Synchrony Bank charges a late fee of up to $35 for payments made after the due date.

This fee is in addition to any interest charges that may be applied to your account.

The late fee is a fixed amount, not a percentage of the outstanding balance, as stated in the Synchrony Bank terms and conditions.

You can avoid late fees by paying your bill on time, every time.

Curious to learn more? Check out: How to See If You Have Charges against You?

Synchrony Bank charges a $1.99 monthly fee for paper statements, which can add up to a significant expense for customers like Alicia Galowitsch who rely on them to stay organized.

This fee is particularly burdensome for those on a fixed income, like Galowitsch and her husband, who already struggle to make ends meet.

Synchrony Bank also charges a 3% foreign transaction fee on the Synchrony Premier World Mastercard, which can be a costly surprise for travelers.

This fee applies to online purchases made through internationally-based merchants, making it essential to be aware of the charges before making transactions abroad.

For more insights, see: Prepaid Finance Charges

Synchrony Bank charges customers $1.99 monthly for paper statements, which can add up quickly, as seen in the case of Alicia Galowitsch and her husband, who would have paid $11.94 per month.

Alicia Galowitsch relies on paper statements to keep her finances organized, especially when she's away from home, and she's not alone in this preference.

Wu, an attorney, agrees that paper statements are an important consumer protection because people tend to overlook electronic statements, which can lead to late payments and additional fees.

Paper statements have less "friction" than electronic statements, meaning it's easier for customers to access and use them, according to Wu.

Synchrony Bank has exclusions in place to accommodate individuals with various situations, which is how Alicia Galowitsch's fees were waived after the NBC4 I-Team reached out to the bank.

The bank's policy of charging for paper statements seems unfair to Alicia Galowitsch, who pays the bank roughly $450 a month in interest.

The Synchrony Premier World Mastercard foreign transaction fee is a 3% surcharge. This fee is added to any purchase made outside of the United States, including online purchases through internationally-based merchants.

If you plan to use the Synchrony Premier World Mastercard abroad, be prepared for this extra cost.

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If your account is sent to collections, it's likely to be charged off, which can have serious consequences for your credit score. A charge-off is when the lender writes off the debt as a loss.

You can still try to pay off the debt, but it's usually not possible to remove the charge-off from your credit report.

The charge-off will remain on your credit report for seven years from the original delinquency date.

Synchrony Bank may sell your debt to a third-party collection agency, which can further damage your credit score.

The collection agency will contact you to try to collect the debt, but you're not obligated to pay it if you've already paid the original creditor.

Synchrony Bank may also report the charge-off to the credit bureaus, which can lower your credit score.

If you've already paid the debt, you can try to dispute the charge-off with the credit bureaus.

Related reading: Credit One Bank Dispute Number

Synchrony Bank has been involved in several controversies over the years, including a 2014 lawsuit alleging that the bank was charging customers excessive fees for payment protection plans.

The lawsuit claimed that Synchrony Bank was making millions of dollars in profits from these fees, which were often hidden in the fine print of customers' contracts.

Synchrony Bank has also been criticized for its aggressive debt collection practices, with some customers reporting being harassed by the bank's collectors.

The Consumer Financial Protection Bureau (CFPB) has taken notice of Synchrony Bank's debt collection practices, issuing a warning to the bank in 2016 about its "aggressive and deceptive" tactics.

Synchrony Bank has also faced criticism for its lack of transparency when it comes to its fees and charges, with some customers complaining that they were not aware of the fees until they received their statements.

In one notable case, a customer was charged a $36 fee for a payment protection plan that they did not even have, highlighting the bank's poor customer service and lack of transparency.

For another approach, see: Synchrony Bank Lawsuit