Consumer complaint received 2019-07-31
Company: Bread Financial Holdings, Inc.
State: WI
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Fees or interest
Sub-issue: Unexpected increase in interest rate

Complaint:
I made a purchase at XXXX XXXX  XXXX XXXX XXXX  for the amount of {$5700.00} on XXXX. I financed through Comenity and signed up for the 18 months 0 % interest finance plan. Shortly after creating an online account, a representative helped me setup automatic payments to pay my plan in full. See confirmation email below ; No stamps, no late payments, no worries. I managed my account through the online portal ( customer dashboard ) noticing the payments were correctly being displayed and applied to the plan that I signed up for. I am writing to dispute a balance in the amount of {$1300.00} on my account. This is the amount of accrued interest I received after my last payment of {$260.00} was taken out of my account ( according to Comenitys automatic payment plan ) 13 days AFTER the 18-month promotional plan I had signed up for. I believe the penalty of the FULL accrued interest on the original purchase amount is unfair and erroneous due to the discrepancy between the automatic payment schedule and the promotional expiration date, as well as the lack of communication and alerts Comenity provides to inform customers of this inconsistency. After speaking with a customer service representative on XX/XX/XXXX ( the day I received an email for a new statement including the {$1300.00} accrued interest penalty, billed XX/XX/XXXX ), I was informed that the billing cycle might extend past the promotional date, and on the billing statements- there is a disclaimer printed in small red lettering stating the discrepancy between these two. I explained to several customer support members that I was not receiving this information and that this message is not stated meaningfully and clearly on the website or through any other avenues of communication ( emails, text messages, secure message center ). I was appalled at the deceiving structure of the automatic payment schedule. It is NOT in the customers best interest to have a default payment plan setup to have them fail at paying their full balance by the end of the promotional term to which they signed up for. For a system completely created and organized by Comenity, it is deceptive and negligent to have the default minimum monthly payment less than required in order to pay the full account balance by the end of the promotional terms. The term automatic [ payment ] should and does not equate or extrapolate to manually having to change the payment amount in order to meet the promotion deadline. Unbeknownst at the time of signing up, Comenity roles out a payment plan/schedule that runs into the 19th month, which is one month past a customers promotional period ( of an 18 month promotional plan ). It must be understood by Comenity that customers are trusting that their services are setup fairly and honestly, and with intent to make their customers happy and satisfied. Customers do not know what they dont know upon signing up for a promotional plan and therefore are relying on customer services to successfully guide them through the process. Comenity should be required to provide customers with a payment plan that matches their promotional period. Even taking into account a processing period, the default minimum automatic payment amount should be increased ( by Comenity ) in order to pay the entire account balance prior to the 18th month. Or, customers should receive a statement with the remaining account balance, the month prior to the promotional end date. It is because of these flaws and gaps in Comenitys business methods why I ( as a loyal and honest-paying customer ) am experiencing such frustration- much of which employees on Comenitys side seem to understand, agree with, and be all too familiar with. Its these reasons why I am very dissatisfied with the services provided to me by Comenity and I only see it right for Comenity to do everything in their power to make reasonable accommodations/adjustments. My experiences with customer service have been disappointing and irresolute, having over five conversations with team members. Multiple Comenity representatives expressed their sympathy, agreeing with the above statements Ive outlined. One or two members have told me they would reverse the penalty on my account if they could but unfortunately, they do not have the proper authority ; to which I requested I be transferred to the next manager that could. Customer service representatives claim to add notes to my account detailing each conversation however ; each new phone call is at least another ten to fifteen minutes having to explain the situation up front, which is very redundant and time consuming. This is not quality customer care. At the end of my discussion with XXXX, an account manager, on Friday XX/XX/XXXX, he admitted that the system is misleading and not set up for customers to succeed in meeting their promotional deadlines. He expressed how sorry he felt for my wife and me and wished he had the authority to adjust this penalty. After hearing this, I requested that I speak with a higher manager, after which XXXX transferred me to a senior account manager, XXXX ( ID # XXXX ). I had a brief discussion with XXXX explaining my confusion and disagreement regarding the accrued interest charge applied to my account. She acknowledged the issue and told me that she would reach out to the dispute team to clear this up. Due to business hours, she said she would have to follow up with me at a later date. She told me that she would give me a call around XXXX my time ( in Wisconsin ), Monday XX/XX/XXXX. I verified my phone number with her and she provided her ID number in the event that there were any disconnections in communication. I never received a call back Monday the XXXX. I followed up by calling again Tuesday XX/XX/XXXX where I spoke with another representative who told me that I was providing erroneous information regarding any scheduled call back, and explained that Comenity representatives/managers dont typically schedule calls. I was not pleased with this inconsistent information being told to me between representatives. I requested to be transferred to another manager. I talked to XXXX ( ID # XXXX ) who apologized for the inconvenience and said she sent a message to XXXX who she confirmed to be in the office that day. After a few minutes, XXXX told me that XXXX was busy at the moment but that she would personally follow up with XXXX regarding my call, and either her or XXXX would follow up with me over the phone in a timely manner. I have now waited over a week with no response or updates from any Comenity representatives. I sent a letter explaining my frustrations and request for resolution to Comenity Bank 's dispute department at XXXX XXXX XXXX XXXX, OH XXXX on XX/XX/XXXX. The letter was sent USPS certified mail, and I have confirmation that the letter was received XX/XX/XXXX. Today 's date is XX/XX/XXXX, I have not been contacted by a Comenity resolution to discuss this matter. I believe I have made a good faith effort to resolve the issue with the company before submitting a complaint.

Company response to consumer: Closed with explanation