Synchrony Bank ‘penalizes’ veterans for leaving active duty, class action claims

Synchrony Bank veterans class action lawsuit overview: 

• Who: Sean Taylor and Rachel Hawkins filed a class action lawsuit against Synchrony Bank — formerly known as GE Capital Consumer Lending Inc. — and Synchrony Financial. 
• Why: Taylor and Hawkins claim Synchrony penalizes servicemembers and veterans for leaving active duty by imposing an interest rate penalty. 
• Where: The Synchrony Bank class action lawsuit was filed in North Carolina federal court.

Synchrony Bank breached its duties to servicemembers and veterans by penalizing them for leaving active duty, a new class action lawsuit alleges. 

Plaintiffs Sean Taylor and Rachel Hawkins claim that Synchrony promises veterans a 0% interest rate on outstanding balances, when, in reality, the bank penalizes them by increasing interest and fees once they leave active duty. 

“Rather than permanently forgiving the interest and fees, Synchrony retroactively takes back this benefit by imposing an interest rate penalty on servicemembers after they leave active duty and return to civilian life,” the Synchrony Bank class action says. 

Taylor and Hawkins are seeking to represent a nationwide class of all persons who requested and/or received reduced interest and/or fee benefits from Synchrony on an interest-bearing obligation due to their military service. 

Synchrony violated Servicemembers Civil Relief Act, other laws, class action claims

Taylor and Hawkins, both military veterans, argue Synchrony is violating the Servicemembers Civil Relief Act (SCRA) by not reducing the interest rate to 6% for veterans by way of imposing the “veteran penalty.” 

“The imposition of the veteran penalty is not only a violation of the SCRA and a breach of contract; it violates federal law specifically designed to prevent banks from creating such debt traps,” the Synchrony Bank veterans class action says. 

Taylor and Hawkins claim Synchrony is guilty of breach of contract, breach of implied covenant of good faith and fair dealing and breach of fiduciary duty or special trust, and of violating the SCRA, the Military Lending Act and the Truth in Lending Act. 

The plaintiffs demand a jury trial and request declaratory and injunctive relief and an award of statutory, compensatory, consequential and punitive damages for themselves and all class members. 

Synchrony previously agreed to pay $2.6 million last year to put an end to claims the company violated federal telemarketing laws by placing calls to customers about accounts that did not belong to them. 

Have you received a reduced interest and/or fee benefit from Synchrony Bank? Let us know in the comments.

The plaintiffs are represented by Matthew D. Ballew of Ballew Puryear PLLC and Knoll D. Lowney, Claire Tonry, Marc Zemel and Alyssa Koepfgen of Smith & Lowney, PLLC. 

The Synchrony Bank veterans class action lawsuit is Taylor, et al. v. Synchrony Bank, et al., Case No. 5:24-cv-00313, in the U.S. District Court for the Eastern District of North Carolina.

Read About More Class Action Lawsuits & Class Action Settlements:

• Wells Fargo class action alleges bank participated in $300M Ponzi scheme
• Class action claims Navy Federal allows AI co. to monitor, record calls
• BoA customers seek approval of $21M wire fee settlement
• Judge gives preliminary approval to $32.2M TD Bank overdraft fee settlement