Consumer complaint received 2019-11-09
Company: Bread Financial Holdings, Inc.
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Fees or interest
Sub-issue: Charged too much interest

Complaint:
This is regarding my XXXX XXXX XXXX Credit card. I made a purchase of {$1400.00} on XX/XX/XXXX against No Interest Scheme for 12 months. 

I made regular monthly payments of {$120.00} every month. However, it was very painful payment process as they did not allow Automatic Recurring Payments to be setup beyond 30 days. 

I tried setting up Automatic Payments but there is no Automatic Recurring Payment Facility available on XXXX XXXX Comenity Cards Website. I also complained about this but they said this has been agreed as a Bank Policy not to allow Automatic Payments. This was very strange reason in today 's generation of Smart Automatic world.

Due to the lack of Automatic Payments Setup feature at  Comenity 's end and technical reasons, i missed my last payment of {$110.00} on XX/XX/XXXX. However, as soon as possible, i made it immediately on XX/XX/XXXX i.e. just after 6 days. 

For your reference, I am listing down the previous regular payments done on time as below : XX/XX/XXXX PAYMENT-THANK YOU - {$51.00} XX/XX/XXXX PAYMENT-THANK YOU - {$70.00} XX/XX/XXXX PAYMENT-THANK YOU - {$120.00} XX/XX/XXXX PAYMENT-THANK YOU - {$120.00} XX/XX/XXXX PAYMENT-THANK YOU - {$120.00} XX/XX/XXXX PAYMENT-THANK YOU - {$120.00} XX/XX/XXXX PAYMENT-THANK YOU - {$120.00} XX/XX/XXXX PAYMENT-THANK YOU - {$120.00} XX/XX/XXXX PAYMENT-THANK YOU - {$120.00} XX/XX/XXXX PAYMENT-THANK YOU - {$120.00} XX/XX/XXXX PAYMENT-THANK YOU - {$120.00} XX/XX/XXXX PAYMENT-THANK YOU - {$120.00} XX/XX/XXXX PAYMENT-THANK YOU - {$110.00} Then i realized on XXXX when i looked up my account online that they have charged a heavy interest of {$480.00} as below : XX/XX/XXXX FINANCE CHARGE {$240.00} XX/XX/XXXX FINANCE CHARGE {$2.00} All this is because of last payment missed by 6 days only and that too of {$110.00} amount. Not sure how they can charge so much heavy interest when payments have been made regularly. 

I called them on XXXX and talked to three of their Supervisors and told that if the last payment miss is my mistake and i agree to it but it is also because of the Automatic Payment Facility missing on their part. They should be responsible for this action as well. Anyways, I asked to charge me for the interest for last 6 days and that too on {$110.00} only as most of the Principal amount has been paid. But all of them showed their helplessness and they said, it can not be done. I requested them to help me as this is too huge an interest and i can not pay this. They acknowledged they want to remove it but they can not as they are not authorized to do so. I said this is too much stressful to me and this should not be done to their customer. But I have no option now but to close this account and complaint about this Fraudulent practice of Interest Charging and not allowing their customers to setup Automatic Recurring Payments so that they fall into this trap of not paying on time and they miss payments. 

I again called them on XXXX and requested to waive of the huge interest but to no resolve. Finally, i closed my account on XXXX. 

As it's evident, i made significant monthly Principal Payments every month on time. I want to report this as Fraudulent Calculation and Charging of Heavy Interest Amounts despite paying almost most of Principal amount on time. I would also like to complaint that all this happened because of XXXX not allowing their customers to setup Automatic Recurring Payments to ensure the customers miss payments and fall into this never ending trap. 

Now, i have closed my account to avoid incurring any further charges on my account. I also would like to highlight that this should not affect my credit history and should be avoided by the bank to be reported to Credit Bureau Agencies. 

Please help me out to get this sorted by the Comenity Bank. Their address is below : Comenity Capital Bank XXXX XXXX XXXX XXXX, OH XXXX

Company response to consumer: Closed with explanation