Synchrony Bank Interest Rate Omission on Statement Class Action

The Truth in Lending Act (TILA) requires that lenders provide complete and accurate information about things like interest rates. The complaint for this class action, however, alleges that Synchrony Bank provided “disclosures with inaccuracies or omissions that violated” TILA in connection with its credit card accounts.

According to the complaint, TILA has a number of purposes:

  • To “allow consumers to compare more readily the various credit terms available;”
  • To “enable consumers to avoid the uninformed use of credit;” and
  • To “protect consumers from unfair billing practices.”

What did Synchrony do? The complaint claims it “failed to furnish billing statements with complete and accurate information regarding account features and their corresponding annual percentage rates[.]”

Synchrony offered to extend credit to plaintiff Marcy Zevon and she accepted. She now holds a Walmart credit card issued by Synchrony that she uses for personal, family, or household purposes.

Zevon used her credit card to acquire cash at a Walmart location.

Her subsequent September 2019 billing statement, issued by the bank around September 14, 2019, listed two categories for card usages in its Account Features and Rate Disclosure. Regular Purchases incur an annual percentage rate of 25.15%; Cash Advances incur an annual percentage rate of 28.15%.

However, the statement did not disclose the rate for a third feature called Quick Cash. This feature, although perhaps technically a cash advance, carries the same lower interest rate as Regular Purchases.

Under TILA, Zevon should have been furnished on any billing statement “[w]here one or more periodic rates may be used to compute the finance charge, each such rate, the range of balances to which it is applicable, and … the corresponding nominal annual percentage rate…”

Although Zevon examined her statements, the complaint says “she could not determine from the Account Features and Rates Disclosure that she had access to this Quick Cash feature that allowed her to obtain a cash advance at a Walmart location at the lower Regular Purchases rate.

The complaint alleges that Synchrony’s “failure to provide information about a credit feature of her account and the corresponding APR … constituted a key omission or misrepresentation of the terms of the account that was a violation of Regulation Z and TILA.” (Regulation Z is the set of regulations promulgated by Federal Reserve Board to implement TILA.)

The class for this action is all persons who, between September 4, 2016 and the present, were given a billing statement by Synchrony Bank with an Account Features and Rates Disclosure that did not specify the in-store Quick Cash feature and its APR, or any other regular account feature and its APR.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Synchrony Bank Interest Rate Omission on Statement Complaint

September 4, 2020

The Truth in Lending Act (TILA) requires that lenders provide complete and accurate information about things like interest rates. The complaint for this class action, however, alleges that Synchrony Bank provided “disclosures with inaccuracies or omissions that violated” TILA in connection with its credit card accounts.

Synchrony Bank Interest Rate Omission on Statement Complaint

Case Event History

Synchrony Bank Interest Rate Omission on Statement Complaint

September 4, 2020

The Truth in Lending Act (TILA) requires that lenders provide complete and accurate information about things like interest rates. The complaint for this class action, however, alleges that Synchrony Bank provided “disclosures with inaccuracies or omissions that violated” TILA in connection with its credit card accounts.

Synchrony Bank Interest Rate Omission on Statement Complaint
Tags: Did Not Make/Receive Proper Disclosures, Failing To Itemize Interest, TILA, Your Bank