Consumer complaint received 2022-12-19
Company: Bread Financial Holdings, Inc.
State: CT
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Problem with fraud alerts or security freezes

Complaint:
In XX/XX/2022, while on vacation, someone took out a Comenity account ( Express ) fraudulently using my maiden name. They also opened a XXXX  XXXX XXXX account. They ordered {$310.00} worth of items. When I got home, I got a box of random clothing that is not my size or gender. I immediately reached out to the Express fraud department and let them know that it was fraud and that I did not order it, nor did I know who did. The rep requested that I return the items, and I was credited {$15.00} for the shipping on XX/XX/2022 to ensure the account would be {$0.00}. I let her know that I was traveling through XXXX, XXXX, and XXXX and would return the box as soon as possible. She said that I had until Wednesday, XX/XX/XXXX to return the items. 

It did not seem that the return total added up when I received the email and return shipping label, so I drove to Express at XXXX XXXX XXXX XXXX  XXXX, XXXX, MA XXXX on XX/XX/2022 at approximately XXXX and returned the box of items to the rep at the store ( I can't find her name ). I included the packing slip from the box I received and the printed return email with a subject of " Your shipping label for Express return ( order # : XXXX ) ''. She said she would work it out with customer support. I received an email confirmation that the items were received from Express on Saturday XX/XX/2022 for order confirmation # XXXX. There was a {$6.00} charge for returning the items, which I believe was inappropriate because of the fraud. 

On XX/XX/2022, I received a statement from COMENITY with a late fee and a balance of {$360.00}. I and was transferred to Comenity Collections - a lady named XXXX. She claimed that there was no record of my fraud claim or return. She told me I had to pay {$30.00}. I tried to explain it was a fraudulent amount, and I think she said she would take {$7.00}. When I told her to transfer me to the fraud department, she hung up on me. 

I received a letter dated XX/XX/2022 from Comenity stating that they were looking into the request and it would take up to 90 days. 

On XX/XX/2022, I submitted a notice of fraud through Identitytheft.gov ( reference # XXXX ). Following their provided checklist, on XX/XX/2022, I sent a letter via certified mail reiterating all of the above. I never received a response from Comenity and I did not get the receipt back that they received it. I also filed a report through Identitytheft.gov ( file # XXXX ). 

On XX/XX/2022, I recevied a letter from Comenity stating that I submitted a fraud claim on XX/XX/2022, they concluded I was not responsible for the disputed amount, and they submitted a request to the three credit bureaus to remove the account from my report. 

On approximately XX/XX/2022, I was notified of an increase of my credit score, and my soft reports ( from my XXXX XXXX and XXXX XXXX accounts ) showed my XXXX XXXX increased from XXXX to XXXX. I assumed that this indicated that the issue had been resolved. 

On XX/XX/2022, I received a letter from Comenity stating that they could not verify my return. I assumed that this was overlapping and the situation was resolved and took no action. 

On XX/XX/2022, I recieve a check in the mail for {$320.00} from Comenity. It said I had a credit balance on my credit card account, with no other information. I voided the check and mailed it back. Looking at a copy of the check now, I see that there is a different account number which I did not notice initially. 

On XX/XX/2022 I was notified by two of my credit cards that I had a charge off added to my credit report on XX/XX/2022. It shows a new account was opened with COMENITY BANK/EXPRESS and is listed as a charge off and that my credit score has decreased. I can not see how much my score has decreased yet until they update the dashboard. Another credit card that monitors XXXX XXXX shows that Comenity is a new account as of XX/XX/2022, with an Account Balance of XXXX and Payment Status of Collection/Chargeoff.

Company response to consumer: Closed with monetary relief