Consumer complaint received 2022-01-14
Company: Bread Financial Holdings, Inc.
State: GA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Closing your account
Sub-issue: Company closed your account

Complaint:
On or about XX/XX/XXXX, I applied for a card at XXXX XXXX and received approval for a XXXX managed by Comenity with a credit limit of {$7100.00}. I tried to use the card at XXXX XXXX on XX/XX/XXXX for {$130.00} and it was declined. The clerk tried another method and on the payment screen, I saw " Available Credit {$0.00}. '' I immediately called the number on the back of the card XXXX and got an automated system which explained that my account was closed and then hung up. At no time was I prompted to speak with a live agent ; that wasn't even an option on the recording. I was very confused. I went to the online secure message feature for the account and the exchange was as follows : XX/XX/XXXX - ME : I've been trying to contact someone to tell me why my account has been closed! I tried to use the card, which had never been used, in the store and it was declined. When I called the number on the back of the card, I got a recording that informed me the account was closed and then it just rudely hangs up. I haven't been able to speak to a representative. Please explain this! 
XX/XX/XXXX - COMENITY REP : I'm with Comenity Capital Bank, which handles your XXXX account. This card is issued by Comenity Capital Bank pursuant to a license by XXXX XXXX XXXX, and XXXX is a registered trademark of XXXX XXXX XXXX. I'm here to help with your account needs. 

Thank you for taking the time to provide your feedback. 

Your thoughts are important to us, and we'll use your feedback to help provide the best customer service possible. 

Please accept our apologies for any inconvenience you've experienced. 

I understand. Learning that your account has been closed can take you by surprise and create confusion. Taking a look at your account, I see it's associated with what Comenity [ Capital ] Bank considers to be a risky financial history. That's why any accounts you have with our bank have been permanently closed. I apologize for your frustration and any inconvenience this may cause. 

If you have any questions, please click the reply button. 

Sincerely, XXXX Internet Customer Care Team XX/XX/XXXX - ME : Risky? How? I have another Comenity card ( which, to my knowledge, remains open and active ) and my payment history is impeccable. My credit score is in the mid XXXX and has been for quite some time. So please elaborate on what you mean by " risky financial history. '' XX/XX/XXXX - COMENITY BANK REP : I'm with Comenity Capital Bank, which handles your XXXX account. This card is issued by Comenity Capital Bank pursuant to a license by XXXX XXXX XXXX, and XXXX is a registered trademark of XXXX XXXX XXXX. I'm here to help with your account needs. 

I apologize for the inconvenience that has caused. 

Please be informed that your account was closed due to number of recent inquiries on your credit report. 

A letter was issued to your mailing address on XX/XX/XXXX providing additional details of the account closure. You may review this letter for your reference. 

If you have any questions, please click the reply button. 

Sincerely, XXXX Internet Customer Care Team XX/XX/XXXX - ME : Thanks for your reply. Please pass along to whomever needs to know this : That is very poor policy! You all make an inquiry on my credit, issue me an account, then subsequently close the account because there are too many inquiries? There were as many inquiries on my credit when the account was issued as when it was closed ; so why even issue me an account in the first place? Again, very poor policy! You guys have left a sour taste in my mouth when it comes to Comenity Bank. 
XX/XX/XXXX - COMENITY BANK REP - I'm with Comenity Capital Bank, which handles your XXXX account. This card is issued by Comenity Capital Bank pursuant to a license by XXXX XXXX XXXX, and XXXX is a registered trademark of XXXX XXXX XXXX. I'm here to help with your account needs. 

Thank you for taking the time to provide your feedback. 

Your thoughts are important to us, and we'll use your feedback to help provide the best customer service possible. 

Please accept our apologies for any inconvenience you've experienced. 

If you have any questions, please click the reply button. 

Sincerely, XXXX XXXX Customer Care Team My issues/grievances are as follows : XXXX. ) I never received this alleged letter telling me my account was closed ; only one apologizing that they couldn't get me a lower rate at this time, which I never requested. XXXX. ) As stated above, I now have an extra inquiry on my credit, one that will remain until XX/XX/XXXX if I'm not mistaken, and with nothing to show for it. To piggyback on that grievance and also as I stated above, Comenity closed the account with the same number of inquiries as when they approved it so why even issue an account in the first place?

Company response to consumer: Closed with explanation