Consumer complaint received 2019-02-26
Company: Bread Financial Holdings, Inc.
State: MD
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Charged too much interest

Complaint:
Hello, I signed up for XXXX XXXX XXXX financed by XXXX XXXX XXXX XXXX XXXX, XXXX, Ohio XXXX. This was for my XXXX services that my doctor recommended using. They offered 1 year of 0 % interest and 28.99 % APR after the 1 year. However, this was far from the truth. 

I made all my payments on time on the XXXX of every month. On my very last payment that was due XX/XX/XXXX2018, I missed the payment date by 3 days. I tried logging into my account online, however, I had issues logging in and after a lengthy process, I was finally able to log in. When I logged in, I saw that I was charged an access of {$800.00} in interest because I failed to make my last payment of {$150.00} by 3 days. 

I figured I call the company and explain to them that there must be a mistake. The person who answered the phone insisted that I don't make any payments and write a letter to the company explaining myself. So, I took her recommendation and did not make my final principal payment of {$150.00}. I got a letter back from the company saying that I had signed an agreement and that the interest was a revolving interest for a promotional period, and if I didn't make the payment within the given time they can charge me all of the interest from the year and I was liable for it. 

This made no sense to me. I can't believe that this could be legal. They used very predatory practices and tricked me. I was under the impression that I would get charged 28.99 % interest on the remaining balance if I did not make the payment within the promotional period. Instead, they charged me the interest on the original amount, which doesn't make sense to me. 

After receiving the letter, I called the company again and talked to higher management. They told me that they have a 3 day grace period and that If I made my last payment of {$150.00} on the day that I originally logged in on XX/XX/XXXX18 they would have relieved me of the interest. I explained to higher management that I was consulted by the previous agent not to pay and to write a letter. The higher management tried to use some fancy verbiage and ultimately said she was not relieving me of the interest and that I should call their 'hardship ' line and see if I qualify. 

I went ahead and made the final payment of the principal amount of {$150.00} on that date, so it goes on record that I made my final payment. I contacted the 'hardship ' line and soon found out that I wasn't able to go through with that. 

I tried contacting the company again, but they still refused to close my account and said that I am responsible for the interest amount. It is currently on my credit report and the number is increasing. They are charging me late fees and are charging me interest on interest, and they called it a revolving interest. 

None makes any sense and I am truly speechless that a company could operate with such predatory practices. They were completely deceiving and I am a victim of their practices. 

Please Help!

Company response to consumer: Closed with monetary relief