Consumer complaint received 2021-08-14
Company: Bread Financial Holdings, Inc.
State: CA
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Fees or interest
Sub-issue: Unexpected increase in interest rate

Complaint:
I tried to pay off my credit card with XXXX  by comenity bank in XX/XX/XXXX. There are a series of issues that are causing consumers issues, including myself. 

The account in question was closed when XXXX  stopped doing business with Comenity ( they reported all the accounts as closed and I was notified by the credit bureau that this resulted in a large hit to my fico ). This closure was not in regard to the status off account, but by Wayfair and Commenity 's decision to no longer work together actively. 

After a series of poor service, I decided to take a loan out to pay off the card since it was creating a burden on my credit. When I logged into the portal there was no option to create a payoff amount. Upon clicking on the generate payoff amount it ways " Payment Option Not Available ... .Please select a different payment option to proceed. '' The only o there options are to " minimum payment '' " statement balance '' or " current balance '', so I paid the largest one in an attempt to pay my account in full on XX/XX/XXXX for almost {$1000.00}. 

Later I was notified via XXXX that the account was delinquent because interest was applied on XXXX/XXXX/XXXX of approximately {$6.00}. I was shocked as I had paid the account off. I logged in and saw that there was a small balance generated by interest for that month plus a late fee on the approximately {$6.00} and again a random interest charge of almost {$6.00} for XXXX. Unwilling to risk any further issues to my credit, I paid it quickly. I was again prevented with generating a payoff but was instructed to make the other same payment options. Again, I paid the largest balance of approximately {$14.00}. I also sent a message to Wayfair and complained. They responded back saying there was an interest rate increase for that period and that the charge was valid. They did not address the payoff issue, whereby they are not allowing customers left behind when they stopped working so hard together ( Wayfair and Comenity Bank ) and are making it extremely difficult to make a payoff for poor service to consumers. 

I just logged in today and see a XXXX XXXX  charge assessed at XX/XX/XXXX and I made a XXXX XXXX payment. Again I was unable to generate a payoff quote. I wondered why I am not being notified by them? No phone call no email no mail. I saw that I was changed to paperless but I did not elect for that. Additionally, again, no way to know what I owe or how to remove it. At this point, this is extremely predatory-unfair, abusive and deceptive business practices. I hope that someone will look at their practices around the credit reporting XXXX blanket reporting closed when they stopped the credit card program through XXXX  ) and this extremely poor payoff option via the customer portal as well as their poor response to consumers when they alert there is an issue.I am certain I am not the only one impacted by these issues. I would also like that money returned to me for any interest charged for them not allowing me to know how to pay off the loan or to resolve the issue. My original payment amount in May should have been more than sufficient to pay-off the account if their portal was not deceptively and abusively preventing me from submitting the payment. I want to make sure that any record of this issue is updated in my file to reflect that my attempt was to pay off the account. I want you to look at having them fix these issues that could be harming them as well.

Company response to consumer: Closed with monetary relief