Consumer complaint received 2023-05-06
Company: Bread Financial Holdings, Inc.
State: CA
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Problem with a purchase shown on your statement
Sub-issue: Card was charged for something you did not purchase with the card

Complaint:
On or around XX/XX/2023, XXXX XXXX XXXX informed me that I could cover the out-of-pocket expense by applying for a loan. I was told that if approved, I would be able to delay payment for up to 24 months without any consequences. I applied to see if I would be approved and to know the maximum loan amount. After I applied, XXXX XXXX XXXX informed me that I was approved for the maximum amount of {$2200.00}. I asked for details about the loan conditions and how the funds would be distributed to me. XXXX XXXX XXXX informed me that XXXX would send me paperwork that explains everything. I was waiting for paperwork to understand the conditions of the loan. 
On or around XX/XX/2023, I received a credit card from XXXX. Around the same time, I received a bill that stated {$2200.00} was given to XXXX XXXX XXXX around the same day that I applied for the loan. The bill stated that I owed {$77.00} by XX/XX/2023. I had no knowledge and I never authorized XXXX XXXX XXXX to charge XXXX. I never received any documents from XXXX or XXXX XXXX XXXX about the conditions of the loan or credit card. XXXX XXXX XXXX never informed me that if approved for the loan, the funds would be distributed to them directly without any written authorization from me. Nor did I have an opportunity to cancel the loan after the initial application. 
On or around XX/XX/2023, I received a call from Collections for Comenity Bank for the XXXX  account stating that I owed {$150.00} for past due payment and late fees. I explained that I didnt authorize XXXX XXXX XXXX XXXX charge the dental service. And, since the dental work was not performed, I requested the charged amount be removed and the account closed. Collections informed me to contact the merchant to close the account. 
When I contacted XXXX XXXX XXXX and informed them that they charged XXXX without my authorization and provided me misinformation about the loan, XXXX XXXX XXXX stated that cancellation of the credit would result in XXXX XXXX XXXX to retain 50 % of the deposit per their policy which means that they would keep {$1000.00}. When I informed XXXX XXXX XXXX that I wasnt cancelling the dental treatment but the method that I was paying the out-of-pocket expenses. XXXX XXXX XXXX insist that cancelling XXXX was also cancelling the dental services. 
After I informed XXXX XXXX XXXX that they were committing fraud because they charged XXXX without my authorization, XXXX XXXX offered to send me {$1000.00} to pay towards XXXX reducing my debt to XXXX to {$1200.00}. And, they would keep {$1000.00} as a credit for out-of-pocket expenses for future dental work. This is unacceptable. 
Additionally, Im extremely concern with the practices of XXXX XXXX XXXX and affiliated lenders because the XXXX XXXX XXXX clients are primarily people of XXXX who may not understand their consumer rights or be well versed in financial literacy.

Company response to consumer: Closed with monetary relief