You may have read articles stating that you have the right to file a Deferred Interest Credit Card lawsuit against Synchrony Bank or Citibank. However, the fact is that these credit card companies can also be sued for allowing interest to accrue on the full amount of purchase without providing any disclosure to the consumer. This may violate state and federal law. Read on to learn more. Here are some examples of Deferred Interest Credit Card Lawsuits.
Synchrony Bank
In the first of several Synchrony Bank and deferred-interest credit card lawsuits filed in recent years, consumers were charged interest on a balance retroactively to the date the account was opened. This practice violates state and federal law, and attorneys suspect that the terms of the deferred-interest credit card were not disclosed to consumers. However, the bank is attempting to defend itself against the lawsuits by denying any responsibility for these problems.
While Synchrony continues to make deferred-interest credit cards popular with consumers, the bank recently dropped the company from its relationship with Walmart. All existing accounts will transfer to Capital One, and new Walmart cards will be issued by the latter. The Walmart MasterCard earns 3% cash back at Walmart, 2% on purchases at the company’s gas stations, and 1% at other merchants. The Walmart MasterCard has been the most common deferred-interest credit card in recent years. However, it was discontinued when it was discovered that Synchrony is suing consumers for fraud.
Citibank
Many consumers are now pursuing legal action against Citibank and their deferred interest credit cards. These lawsuits allege that Citibank failed to disclose deceptive practices and overstated interest rates on their accounts. Some of the accounts were inflated, and Citibank overstated the interest rate on 128,809 of them between February 2010 and June 2013. The company was also found to have misrepresented debt amounts and delayed making payments on 14,000 accounts, which ultimately cost consumers $4.89 million.
The settlement with Citibank was very large, settling millions of dollars in credit card debt. This agreement was reached through a multi-state lawsuit involving roughly 2,100 credit card customers. As a result, Citibank is required to reimburse consumers who lost money because of high-interest rates. These lawsuits also claim that the company inflated the interest rates on some accounts. Consequently, consumers were left without enough money to pay their bills.
Synchrony
While Synchrony may not have explicitly argued that its practices violate the GFBPA, there are certain markets and transactions for which the statute of limitations applies, and these cases will affect credit-card debt cases. In the Synchrony cases, the plaintiffs argue that the credit-card debt lawsuits are valid, but the cases do not address whether consumers are entitled to deferred interest.
The Fair Trade Commission, or FTC, is also investigating complaints of consumer mistreatment. Synchrony Bank received numerous complaints from consumers who were bothered by robocalls and rude representatives. These complaints led the FTC to file a lawsuit against the company and to force it to rectify the situation. It is now paying consumers a reasonable portion of the total amount that they are owed.
Although ignoring the suit is not advisable, debtors should respond to the lawsuits with a response. An Answer does not commit the debtor to pay it, but it does indicate interest in the information Synchrony Bank has to prove it owes. Furthermore, SoloSuit makes it easy to file a response to a Synchrony Deferred Interest Credit Card Lawsuits.
CareCredit
The Consumer Financial Protection Bureau is investigating the CareCredit deferred interest credit card lawsuits, which claim that the credit card company deceived consumers into believing they were getting an interest-free line of credits. The problem is that the cardholders ended up paying months of interest even after the promotional period was over. A recent lawsuit by the Consumer Financial Protection Bureau ordered the company to refund at least $34 million to consumers who signed up for one of the credit cards.
The company was fined $34.1 million by the Consumer Financial Protection Bureau in December 2013, after it was revealed that consumers were misled about the terms and conditions of deferred interest. The settlement also forced the company to make significant changes to its disclosure practices, marketing practices, and customer service. A third settlement is expected to come later this year, and the Consumer Financial Protection Bureau plans to continue investigating the CareCredit deferred interest credit card lawsuits to ensure that they do not fall victim to similar situations in the future.