GE Capital, Synchrony Bank Customer Bankruptcy $8.5M Class Action Settlement

GE Capital, a predecessor to Synchrony Bank, agreed to pay nearly $8.5 million as part of a settlement resolving claims it mishandled debts following customer bankruptcy.

The settlement benefits consumers with a GE Capital account whose debt on their account was charged off and sold between Jan. 1, 2008, and April 1, 2015, and whose post-sale account was discharged through Chapter 7 bankruptcy.

GE Capital, now known as Synchrony Bank, is a massive financial corporation that touts millions of accounts and billions in financed sales. Synchrony has a far reach and operates credit card programs at stores such as Amazon, Lowe’s, Sam’s Club, and more.

According to a class action lawsuit against GE Capital, the bank failed to properly update credit reporting when selling accounts to other lenders. As a result, when sold accounts were later discharged through Chapter 7 bankruptcy, the accounts still showed up as being sold, charged off, and at a $0 balance.

Plaintiffs in the GE Capital bankruptcy class action lawsuit contend these accounts should show up in credit reports as included or discharged through bankruptcy proceedings. Because the items showed up incorrectly on their credit reports, GE Capital customers were allegedly unable to get credit when they applied.

Synchrony hasn’t admitted any wrongdoing but agreed to settle these claims with a $8.455 million settlement.

Under the terms of the GE Capital and Synchrony Bank bankruptcy settlement, the cash fund will be divided amongst eligible Class Members. The fund will first be used to provide customers with full refunds of any mistakenly payments made to GE Capital after Chapter 7 bankruptcy discharges. 

The remaining fund will be split equally amongst eligible Class Members. These pro rata payments are capped at $175 per cardholder.

In 2015, GE Capital reportedly corrected this by asking TransUnion, Equifax, and Experian to delete or suppress these items from customer reports. As such, there is no injunctive relief included in the settlement. 

However, Class Members who are eligible for the settlement and believe their credit report still shows their GE Capital account at issue may contact the company’s representatives to remedy this on an individual basis.

The deadline for exclusion and objection is Jan. 28, 2022. The final approval hearing for the settlement is scheduled for Feb. 10, 2022.

In order to benefit from the GE Capital and Synchrony Bank bankruptcy settlement, Class Members must submit a valid claim form by Jan. 28, 2022.

Who’s Eligible

Consumers with a GE Capital account whose debt on their account was charged off and sold between Jan. 1, 2008, and April 1, 2015, and whose post-sale account was discharged through Chapter 7 bankruptcy.

Potential Award

Distribution claim: $175

Reimbursement claim: Varies

Proof of Purchase

Distribution claim: no proof of purchase required

Reimbursement claim: submit documentation confirming the amount of your post-discharge payments listed below, in the form of cancelled checks, account statements, or other similar proof. The documents you submit must be originals or accurate copies. 

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

01/28/2022

Case Name

Belton, et al. v. GE Capital Consumer Lending Inc., Adv. Pro. No. 1408223 in the U.S. District Court for the Southern District of New York

Final Hearing

02/10/2022

Settlement Website

BeltonGECapitalSettlement.com

Claims Administrator

Belton GE Capital Settlement Program
Settlement Administrator
P.O. Box 26525
Richmond, VA 23261
877-654-1125

Class Counsel

George Carpinello
Adam Shaw
BOIES SCHILLER FLEXNER LLP

Charles Juntikka
CHARLES JUNTIKKA & ASSOCIATES

Defense Counsel

Joseph L. Noga
Michael Ross
JENNER & BLOCK LLP