Consumer complaint received 2020-03-11
Company: Bread Financial Holdings, Inc.
State: MS
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Problem with a credit reporting company's investigation into an existing problem
Sub-issue: Problem with personal statement of dispute

Complaint:
Comenity Bank manages several accounts for various stores. I have an account with XXXX XXXX XXXX  XXXX. This is where my recent issue stemmed from. I even went to the XXXX. Comenity recently dropped my credit limit from {$1200.00} to {$700.00}. I had two issues with this. The first, and as I explained to them is that they didn't have valid reasons to lower it and due to them lowering it, it resorted to the card appearing to be maxed out because now the lower credit limit is as close as it can be to the balance. Now my card is reflecting with a higher balance and a higher credit usage per the bureaus ; lowering my score of course. The second reason is that I didn't receive notice from them indicating this action was going to take place prohibiting me from making any type of arrangements such as maybe paying more to lower the balance so that it didn't appear maxed out. I hadn't used the card in months but used it due to not wanting them to close the account. I have over 91 % of on time payment history overall and over 95 % of on time payment history with them. They lowered my credit limit in what seems immediately following a late payment that as I explained to them I simply forgot but paid right on the spot as soon as I received the email informing me nearly 2 weeks later. They in return waived the late fee due to my excellent payment history but refused to restore my credit limit. My only option per them was for them to run another credit check to see if I qualified even tho I already have an account with them. Comenity did not drop my credit limit based on history with them, they dropped it due to other non-pertinent details in my credit report during what appears to be random checks that I am not authorizing. One of the reasons given in the correspondence I received was lack of real estate history. So now consumers are being penalized for lack of real estate. Is it not my right to establish real history when I'm ready so why would the bureaus even list that reason to a creditor. 

It seems the credit bureaus in my opinion are reporting either non-pertinent and/or irrelevant details to banks and lenders. How is this fair to a consumer. 

As a consumer, we are already at the mercy of lenders because we do not know what scoring model they will use until after we have already applied with them. Why are different scoring models created every single year that lenders are not obligated to use. How do consumers know that some lenders are not using these older models that would make it difficult to approve credit for mortgages etc toward a certain class of people. Per my own research, even more consumers would benefit from scoring model 8. However, some lenders are still using Fico 3, 4 and, 5 ; the ones that would obviously produce higher denials due their terms. How is it fair or how does it make any sense at all to have over 6 different credit scores because lenders all over the place are using different scoring models. 

The reason I am submitting these inquiries is because their are several consumers that have these same concerns but have no idea who they can talk to for answers or concerns. People don't understand why certain things they are doing or not doing for that matter could be affecting their score. When you have over 90 % alone of on time payment history, why would you not have at least a good credit score. Oh but you do have a good credit score ; but only when certain scoring models are being used. 

Why are so many things being factored in credit scoring now that have nothing to do with how a person would pay their debt. If I have a $ XXXX credit limit, its not recommended that I use more than $ XXXX of it if I don't want to see a decrease in my credit score. Or I need to be able to pay that balance off in 30 days to see my score increase. Maybe a certain class of people can pay off in a months time but not every consumer can and it most certainly is not the expectation consumers are given when they apply. 

How do these things make sense to a consumer when all that consumer can understand is why did you give me this credit limit if I couldn't use it at my discretion. To sum this up, when did it stop being about payment history and about everything else pertaining to how the consumer is managing their own accounts instead? How do we as consumers know we are not being discriminated against per our race to keep us from being able to obtain certain things. I really hope these matters can be looked into or if possible can you please can you refer me to an entity that can address some of these consumer concerns because at this point I have the right mind to start sending my concerns to news outlets just to get some answers. Thanks,

Company response to consumer: Closed with explanation