Consumer complaint received 2021-08-11
Company: Bread Financial Holdings, Inc.
State: GA
Product: Debt collection
Sub-product: Credit card debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt was paid

Complaint:
Dear Sir or Madam : I hope this email finds you well. Like most consumers, I am always interested in XXXX interest purchases and financing options. Unfortunately, despite having a XXXX XXXX, I feel trap to what I believe is fraudulent debt collections and corrupt business practices. 

On or about XX/XX/XXXX, I purchased an engagement ring at XXXX XXXX. The sales people indicated that there was sixty-day no payments with a XXXX interest promotion ongoing so long as I paid the debt off within XXXX year. As a result, I financed {$6000.00} with the understanding that I would pay off within XXXX year. I made prompt payments on between XX/XX/XXXX through XX/XX/XXXX as indicated in the attached statements. 

On or about XX/XX/XXXX, I wanted to purchase some earrings from XXXX for my fiancee. I financed {$2000.00} through the same promotion -- XXXX interest so long as it is paid off within XXXX year or XX/XX/XXXX. 

As reflected in the attached statements, I made the following payments : ( XXXX ) XXXX XXXX, XXXX - {$500.00} ; ( XXXX ) XXXX XXXX, XXXX - {$670.00} ; XXXX XXXX ) XX/XX/XXXX - {$670.00} ; XXXX XXXX ) XX/XX/XXXX - {$670.00} ; XXXX XXXX ) XX/XX/XXXX - {$670.00} ; XXXX XXXX ) XX/XX/XXXX XXXX ; XXXX XXXX ) XX/XX/XXXX - {$950.00}. 

For the XX/XX/XXXX statement, XXXX XXXXComenity Bank  stated " you must pay your XXXX XXXX balance of {$950.00} in full by XXXX XXXX XXXX XXXX XXXX, XXXX to avoid paying accrued interest charges. '' So I submitted a payment for {$950.00}. 

On XX/XX/XXXX, XXXX XXXXComenity Bank  charged me {$1300.00} for " promo finance charge adj. '' I was flabbergasted! I did exactly what they told me to do to avoid the finance charges. 

Admittedly, on XX/XX/XXXX, I missed a payment. On XX/XX/XXXX, I paid {$1100.00} pay off the entire balances ... or so I thought. On the same day, I inquired how this happened with XXXX XXXXComenity Bank. In response, a representative indicated that I did not pay off the engagement ring amount XXXX {$6000.00} XXXX on or before XX/XX/XXXX. I asked how could that happen? Well, it has occurred because consumers can not direct payments to which debt they wish to satisfy. XXXX XXXXComenity Bank  divides the payment as they deem fit which does not align with the financial interests of their consumers. 

XXXX XXXXComenity Bank  claim that there is nothing they can do but the debt ( i.e., finance charge ) is owed. I responded that I will not pay a single cent more in light of the clearly fraudulent practices of placing payments to prevent timely payoffs so interest over the entirety of the loan can be charged. I believe these practices to be unlawful, fraudulent, corrupt, usury, and knowingly perpetrated to trap consumers in long-term debt. I can not fathom how many other consumers have been baited by these XXXX interest gimmicks without the awareness or inability to allocate payments to ensure timely payoff. 

If you wish discuss further, please do not hesitate to contact me at XXXX or via email at XXXX. 

Respectfully, XXXX XXXX XXXX, XXXX.

Company response to consumer: Closed with explanation