Synchrony Bank Investigated by Ohio Organized Crime Commission Over Credit Card Charges

A complaint alleging irregularities in credit card charges led the Ohio Organized Crime Investigations Commission (OCIC) to meet with Synchrony Bank representatives in May 2023, according to a report by the Columbus Dispatch. The meeting, confirmed by OCIC officials, is part of an ongoing probe into potential financial misconduct, though no formal charges have been filed as of July 2024.

What is the Ohio Organized Crime Investigations Commission?

The OCIC, a state agency established in 1977, investigates organized crime and financial fraud. It collaborates with law enforcement to address white-collar crimes, including fraud, money laundering, and corporate misconduct. In a statement, OCIC spokesperson Sarah Thompson said the agency “takes all complaints seriously and conducts thorough investigations when there is credible evidence of wrongdoing.”

What are the allegations against Synchrony Bank?

The complaint, filed by an unidentified consumer advocacy group, alleges that Synchrony Bank—known for its retail credit cards—imposed unauthorized fees and obscured terms in credit card agreements. A source familiar with the case told the Columbus Dispatch that the OCIC is examining whether the bank’s practices violated state consumer protection laws. Synchrony Bank has not publicly commented on the allegations.

How does this investigation align with past OCIC actions?

The OCIC has previously targeted financial institutions for deceptive practices. In 2021, it fined a major regional bank $2.5 million for similar fee-related violations. While the current case is distinct, it reflects the agency’s focus on scrutinizing large financial entities. “We’ve seen patterns where consumers are unclear about their obligations,” said David Rivera, a financial policy analyst at the Consumer Federation of America. “Regulators like the OCIC play a critical role in holding institutions accountable.”

What happens next in the investigation?

The OCIC has not disclosed a timeline for the probe. If evidence of wrongdoing is found, the agency can refer the case to prosecutors or seek civil penalties. Synchrony Bank, which reported $12.3 billion in revenue in 2023, has faced similar scrutiny before. In 2020, the Consumer Financial Protection Bureau (CFPB) fined the bank $1.4 million for misleading customers about credit terms. A CFPB spokesperson declined to comment on the current case.

As the investigation unfolds, stakeholders will monitor whether the OCIC’s findings lead to regulatory action or policy changes. For now, the case underscores the ongoing tension between financial institutions and regulators tasked with protecting consumers.