Consumer complaint received 2018-06-21
Company: Bread Financial Holdings, Inc.
State: NJ
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Unexpected increase in interest rate

Complaint:
I opened up a credit card with XXXX XXXX XXXX under my XXXX 's XXXX   Membership because they offered an attractive interest rate with 5 % back on in store purchases, 2 % cash back on outside store purchases and XXXX cents off per gallon of gas purchases through XXXX 's gas station. I was under the impression that the interest rate was fixed based on how the XXXX 's store was marketing the product. In XX/XX/XXXX there was a change to my XXXX XXXX   status to XXXX XXXX XXXX XXXX  which just found out when talking to a XXXX XXXX XXXX supervisor on XX/XX/XXXX. In XX/XX/XXXX I was in the middle of many personal issues and supposedly the company said they mailed out the changes to my account at that time. I never received or would have agreed to these changes. 
If I remember correctly the interest rate I agreed to pay was around 6 %. Part of my balance is being charged at 7.99 %. The XXXX XXXX XXXX portion is being charged at 26.49 %. This is predatory lending at its worst and is the most egregious I've ever seen. 
When I asked XXXX the XXXX Supervisor why I was downgraded to the XXXX XXXX XXXX XXXX she had no explanation because my account is still in " GOOD STANDING ''. I asked if this is a way that they can in fact raise the interest rate once the status is changed and she said it is. She looked at my status and according to what she can see I do not qualify for any special promotions moving forward on this account. 
I asked if there was a supervisor that can correct these predatory issues. She said ; today? I said today or any day. She said there will be no corrective action that can be done at this time.I again asked for a supervisor but she did not offer any further assistance to accommodate my request. I told her the reason I wanted a her supervisor was because it is obvious that there is a plan in place as far as increasing the interest rates of unsuspecting victims of their abuses and I was wondering if there was someone that could right the wrongs in my case. 
I also reached out to XXXX XXXX XXXX XXXX and told them about this bait and switch program. I told their supervisor that this credit card is not sustainable and will affect their future sales by victims of these predatory actions by the bank that they are promoting. I asked the supervisor to please discuss this at the next supervisor meeting to make them aware. The supervisor told me they are just told to sell this plan and they have no control of what happens after that point. 
I put in a complaint on XX/XX/XXXX once I figured out that my account was changed. The reason why I never noticed is that I usually pay my bills through my XXXX account. For some reason I happened to look at the interest rate which tipped me off to this major issue. I went back over my account after speaking to a Rep. from XXXX XXXX over the phone. This Rep. was not able to take the complaint but referred me to the email complaint section. 
I was told I am still in " GOOD STANDING '' to this day!

Company response to consumer: Closed with explanation