Consumer complaint received 2022-07-23
Company: Bread Financial Holdings, Inc.
State: WA
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Problem when making payments
Sub-issue: Problem during payment process

Complaint:
On XX/XX/2022 I attempted to login to my Ulta store credit ( issued by Comenity Bank ) card online account to make my monthly payment which was due on XX/XX/XXXX. However, I kept getting an error message that my password was incorrect. I selected the forgot password option and after XXXX separate attempts I was finally able to access my account. To my surprise my bank account was no longer linked to my online account. This credit card account has been open for about 9 months and my checking account has been linked to the account ever since to allow mart make payments. I proceeded to re-link my checking account to make my payment, but kept getting an error message that the checking account I was entering was already linked to the account. However, when I returned to the " make a payment '' screen I was promoted again to link an account to make a payment. After about XXXX attempts I gave up. The next day on XX/XX/2022, I again attempted to log into my Ulta online account and once again received the error message that my password was incorrect. I was suprised at this because I had just reset my password the day before and autosaved the password to my internet browser. I again went through the process of selecting the " forgot password '' process and reset my password. This time I was able to reset my password with one attempt. After getting into my account, once again I was unable to make a payment because the system kept prompting me to link a bank account to make a payment. I tried again to link my checking account, but the system continued to say the account I was trying to link was already linked to the Ultra online account as a form of payment. For the next 4 days I tried to make my payment, but was unsuccessful because I could not link my checking account to the Ulta online account even though the account had been linked for the previous 9 months the credit card has been open. On XX/XX/XXXX I attempted to call the Comenity Bank and was on hold for over an hour then hung up on. I attended to call for several days. On some days I could even get on hold. The automated system would say they are experiencing a high call volume and to try back later. Finally on XX/XX/2022 I was able to get through. I explained to the customer service rep that I was having trouble adding my checking account to make a payment which was why I was late and could they waive the late fee. I was told that in order to have the late fee waived I would have to make the XXXX payment and XXXX payment totaling {$50.00}. I explained I could only afford to make the XXXX payment of {$37.00} and didn't think it was fair I had to make both payment when I wasn't my fault the payment was late. He offered date the payment for XX/XX/XXXX and agreed. Unbeknownst to me, this didn't bring me current and a block was placed on my card. Days later, I went on to the Ulta website and tried to make a purchase for {$42.00}. I had recently received a credit limit increase to {$680.00}. At the time I had an available credit of {$470.00}, so a {$40.00} purchase should processed with out issue. I immediately called Ulta and was told about the hold. I explain the situation about not being able to add my payment and was told the department who could remove the hold was closed and I needed to call back the next day. The next day I called and after being on hold for XXXX minutes the system hung up on me. This happened another 3 times eventually I gave up for the day. The same day my XXXX store credit card ( also issued by Comentiy Bank ) was due. to my surprise when I attempt to login in to my XXXX store online account I had the same issues I had with my Ulta card online account. I had to reset my password and once again my checking was no longer linked and I could re-link the account because the system kept saying the account I was trying to link was already linked. I decided to go online to see if others were having issue with Comenity bank. I logged on to XXXX and did a search for the words " community bank. '' Shockingly there were numerous tweet of other having similar issues to mine and even worse. XXXX had attempted a system upgrade that was causing customer not be able to access their account or use their credit card, but XXXX was still charging late fees to customers. XXXX 's XXXX account was responding to the tweets with various canned responses : We apologize the recent upgrade to our system is taking longer that expected, You can use this link to our EasyPay site to make a payment; Please Dm us for help with addressing your issue etc. However, it should be know the link Comenity provided for EasyPay also did not work and was a bad link. When clicked the link took you to an XXXX error page. I then XXXX Comenity Bank and found their customer service number. After XXXX hours on hold, I was able to speak to a customer service rep who explained they have been having issue, but she could process my payment and waive any late fees if I had any. I told her about my previous experience with my Ulta card and how I wasn't able to use the card. She understood my frustrations and agreed it didn't seem fair, but I had to speak with a different department to have the block lifted. The department was closed so I would have to call back the next day. The next day I spent over 4 hours on the phone trying to get to the department to lift the block, but because my account was still in " past due " status everytime I called my call was rerouted to XXXX 's collection department. After speaking to the XXXX customer service rep I was able to get them to transfer me directly to the department. When I got connected I explained the situation to the customer serve rep and was told she need to get a supervisor to approve removing the block. After XXXX minutes on hold, she returned stating the supervisor had removed the block because it wasn't my fault my payment was late. The rep said refreshed her screen and the account was now available for use. I got off the phone an attempted to make my purchase through the Ulta app on my phone. The card was again declined. I called Ulta once again ad was told the block was removed but sometimes takes 24 hours to take effect and to make my purchase the next day. The next morning I again attempted to make my purchase on the Ulta app and the purchase was declined. I then called Ulta once again only to be gaslit by the customer service rep that my account was past due, she had not heard about any issue with comentiy customers having issues with making payments, and there was no record of me calling, or having the block removed. I hung up and called back, the next rep said she did see that the block was removed and my account had {$470.00} in available credit, but I would have to make my purchase in the store because their credit cards were having issues with processing online orders. I explain the promotion I was trying to get with my purchased required online ordering and in-store pick up for 10 % off. She then transferred me to the Ulta rewards department. They were unable to process my purchase, but gave me a {$15.00} e-giftcard for not being able to access the promotion. The next day, XX/XX/XXXX I went to the Ulta store to make my purchase, it should be know some of the item I originally wanted to purchase were now sold out. After ringing up my items I provide the e-giftcard and attempted to use my Ulta card for the remaining balance, the card was declined. I was so embarrassed after all the time I spent on the phone and numerous people telling me the card was active and available for use it wasn't. If XXXX system wasn't down I would have never been late and my card would be available for use. I should be able to use my available credit. I think its very unethical for XXXX to charge late fees, block card access when its their fault customers can't make payment because the system is down and hours long hold times on the phone. It should also be know unlike most store credit card you can not make a credit card payment on your Ulta credit card at brick and mortar Ulta stores. You can only make online, snail mail, or phone payments. I'm now told the block on my account will remain until the next billing cycle on XX/XX/XXXX. This is unacceptable.

Company response to consumer: Closed with monetary relief