Consumer complaint received 2018-03-15
Company: Bread Financial Holdings, Inc.
State: MN
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Advertising and marketing, including promotional offers
Sub-issue: Confusing or misleading advertising about the credit card

Complaint:
My complaint is regarding an account that was set up for a purchase from XXXX for a laptop computer and an extended warranty. We purchased the computer through a program offered through my husbands employer XXXX XXXX XXXX. Through the XXXX website we purchased a laptop for {$720.00} and an extended warranty for {$200.00} with credit that was received through XXXX on their website. The company used to be called XXXX XXXX XXXX XXXX. The promotion we were eligible for was for no payments and no interest for 12 months with purchases over {$890.00}. On the initial and subsequent billing statements the verbiage under the section of the bill titled important information for you states see terms, however there are no terms listed on the statement, nor any additional documentation or paperwork attached. It doesn't state where to go to find the terms either. I tried to pull the terms online as the disclosure agreements are supposed to be provided quarterly. When I go to the Consumer Financial Protection Bureau 's website and do a search by XXXX XXXXl XXXX, the terms for XXXX preferred are not listed. The Truth in Lending Act requires credit card issues to submit their card agreements on a quarterly basis. The billing statements from XX/XX/XXXX to XX/XX/XXXX had an Important Account Information section stating no interest or payments if paid in full in 12 months, however the statements as of XX/XX/XXXX do not list any special financing on our billing statement. Instead the verbiage reads Account Closed in the important information section on the bill. None of the bills state what balance the interest rate will be charged on, or the amount of interest that will be charged after the end of the term if not paid in full. There is nothing stating that interest will be charged on the original balance even though payments have been made monthly. We were making payments monthly online as this is what we had done before with our home computer we purchased a few years prior. We had an XXXX XXXXXXXX XXXX XXXX XXXX XXXXr set up for another XXXX Computer we purchased and that was paid in full with no issues. That is because we were able to make payments online. The online payments worked great as we could see the real time balance at the time of the payment, so we knew exactly the amount we were paying was on track to be paid off in full prior to the expiration date. Unfortunately, we got a letter in the mail from XXXX XXXX XXXX c/o XXXX XXXX XXXX XXXXXXXX, dated XX/XX/XXXX, stating that the website XXXX XXXX XXXX was being shut down on XX/XX/XXXX. The letter stated after that date we wouldnt be able to make payments be serviced online. The letter said in order to make payments we would need to mail a check, call customer service to make a payment over the phone or set up a payment through a bill pay service. There was no option to make a payment online or to be able to view the activity or statements ( or any other pertinent account information ) online. The only option was mail order statements according to the letter. The statements still showed that online payments could be made ( even the sMy complaint is regarding an account that was set up for a purchase from XXXX for a laptop computer and an extended warranty. We purchased the computer through a program that is offered by my husbands employer XXXX XXXX XXXX. Through the XXXX website we purchased a laptop for {$720.00} and an extended warranty for {$200.00}. We purchased this through credit that was approved by XXXX through their XXXX XXXX XXXX XXXX credit offer. The promotion we were eligible for was for no payments and no interest for 12 months. The billing statements wording says see terms, however there are no terms listed on the statement, nor any additional documentation or paperwork attached. I tried to pull the terms online as the disclosure agreements are supposed to be provided quarterly, but when I go to the Consumer Financial Protection Bureau 's website and do a search by XXXX XXXX XXXXXXXX, XXXX XXXX is not listed. The Truth in Lending Act requires credit card issues to submit their card agreements on a quarterly basis. The billing statements from XX/XX/XXXX to XX/XX/XXXX had an Important Account Information section stating no interest or payments if paid in full in 12 months. As of XX/XX/XXXX the important information section on our billing statement does not list any special financing. All it shows is Account Closed in the important information section on the bill. What it does not state what balance the interest rate will be charged on, or the amount of interest that will be charged after the end of the term if not paid in full. There is nothing stating that interest will be charged on the original balance even though payments have been made monthly. We were making payments monthly online as this is what we had done before with our home computer we purchased a few years prior. The online payments worked great as we could see the real time balance at the time of the payment, so we knew exactly the amount we were paying was on track to be paid off in full prior to the expiration date. Unfortunately, we got a letter in the mail from XXXX XXXX XXXX c/o XXXXXXXX XXXX XXXX XXXXXXXX, dated XX/XX/XXXX, stating that the website XXXX XXXX XXXX was being shut down. The letter said to make payments we would need to mail a check, call customer service to make a payment over the phone or set up a payment through a bill pay service. There was no option to make a payment online or to be able to view the activity or statements ( or any other pertinent account information ) online. The only option was mail order statements according to this letter. The billing statements after that change still stated that online payments could be made ( even the statement sent the same day the letter about shutting down the website was sent on XX/XX/XXXX ). Every statement that was sent from XX/XX/XXXX through XX/XX/XXXX had the following verbiage : Payments made by phone or at hpdirect.com Preferred Account Pay online service XXXX XXXX Preferred Account will credit payments made using the Pay Online Service if made by XXXX XXXX. Eastern Time on any calendar day, as of the date the payment is made. The statements were providing inaccurate information to their customers! Not only were the statements misleading but so were the emails that were sent regarding our account. The emails we received stated that information regarding your account could be accessed by going to XXXX XXXX ( different internet site that what was listed on the statements ). The link provided on the emails links you to the XXXX retail site which is where we purchased our products. That XXXX retail website does not have any information regarding our account, only our orders. It does not provide us any statements or any information about billing. Every written correspondence that was sent during our payment term contained inaccurate information regarding payments and statements that were supposedly available online. How can a bank send misleading information to their customers? Also, on the XXXX XXXX XXXX website it tells you that you can link your retail account to a PayPal account if you have one. If you don't have one then you can open a PayPal account and that will allow you to link your accounts. It doesn't make sense that in order to make a payment on an existing account you would have to open another new Pay Pal account. My husband has a Pay Pal account he uses for work only and since he uses that for work he does not want to link a personal credit card account to a paypal account used for work. It won't even allow us to link the accounts. Again, misleading information. We don't want to open a personal PayPal account as we had fraudulent activity where someone opened a papal account with my name. Apparently, you just need a persons name and birthdate to open an account. I was charged and billed for transactions on an account I did not open, and it took a long time to resolve these fraudulent charges and get the fraudulent account closed. I will never open a Pay Pal account because of this. It is misleading to customers to state incorrect information regarding payments on the billing statements. To state you can pay online at a website that does not exist for payments, instead they try to convince the customer to open a paypal account so they can link the closed account to a new account they don't need and don't want to open. Why would you want to open a new account, it looks bad on your credit report. To state they can only service your existing account by opening a new account is bait and switch. Thisis why laws are in place to protect customers from deceptive practices from Banks and Credit Card Companies. This is why the Fair Credit and Reporting act and the Dodd Frank Act ( among others ) are in place. I have paid my account in full but now have a balance of {$200.00} which includes late fees and interest after I submitted a dispute ( which was sent via certified mail ). Nobody ever acknowledged our dispute. They sent us an email that is was being investigated, but nobody ever got back to us. They continue to bill us after the dispute was filed even though they never acknowledged or responded to our dispute. The statements don't even show the balance the interest is computed on ( which is required by the truth in lending act ). Paypal has been very difficult to work with even though this is due to their lack of information and deceptive practices and failure to respond to our dispute. To think they keep continuing to add late fee 's and interest even though I filed an official dispute, and now are trying to bargain with me by offering a lesser amount to settle. I am wanting all fees and interest associated with my account removed and our account credited to a XXXX balance. It isnt fair for a creditor to ask you to open another new account to view information on a previous account and to state you can make payments online and view statements online when you cant. Not only is it unfair and deceptive, but it is also illegal. Even the statement sent the same day the letter was sent on XX/XX/XXXX. Every statement that was sent from XX/XX/XXXX through XX/XX/XXXX had the following verbiage : Payments made by phone or at XXXX Preferred Account Pay online service : XXXX Preferred Account will credit payments made using the Pay Online Service if made by XXXX XXXX. Eastern Time on any calendar day, as of the date the payment is made. So, your statements were providing incorrect information to your customers! Not only were the statements misleading but so were the emails that were sent regarding our account. The emails we received stated that information regarding your account could be accessed by going to XXXX XXXX ( different internet site that what was listed on the statements ). The link provided on the emails links you to the XXXX retail site which is where we purchased our products. That website does not have any information regarding our account, only our orders. It does not provide us any statements or any information about billing. Every written correspondence that was sent during our payment term contained inaccurate information regarding payments and statements that were supposedly available online. How can a bank send such misleading information sent their customers? Then on the XXXX XXXX XXXXr website it tells you that you can link your retail account to a PayPal account if you have one. If you don't have one then you can open a PayPal account and that will allow you to link your accounts. So, my husband has a Pay Pal account he uses for work only. He uses that for work, so he does not want to link our personal account to an account for work. It won't even allow us to link the accounts. Again, misleading information. We don't want to open a personal PayPal account as we had fraudulent activity where someone opened a papal account with my name. Apparently, you just need a persons name and birthdate to open an account. I was charged and billed for transactions on an account I did not open, and it took a long time to resolve these fraudulent charges and get the fraudulent account closed. I will never open a Pay Pal account because of this. They are misleading customers by telling them information that is not true and trying to get customers to open another account, so they can service an existing account is why I'm going to report this information. Not only to the BBB but to the governing agencies as there are laws in place to protect customers from deceptive practices from Banks and Credit Card Companies. This is why the Fair Credit and Reporting act and the Dodd Frank Act ( among others ) are in place. I have paid my account in full but now have a balance of {$200.00} which includes late fees and interest after I submitted a dispute ( which was sent via certified mail ). Nobody ever acknowledged our dispute. They sent us an email that is was being investigated, but nobody ever got back to us. They continue to bill us after the dispute was filed even though they never acknowledged or responded to our dispute. Your statements don't even show the balance the interest is computed on ( which is required by the truth in lending act ). Due to all the inconveniences, incorrect information supplied and failure to respond to our dispute, I am wanting all fees and interest associated with my account removed and our account credited to a XXXX  balance. It isnt fair for a creditor to ask you to open another new account to view information on a previous account and to state you can make payments online and view statements online when you cant. Not only is it unfair and deceptive, but it is also illegal.

Company response to consumer: Closed with explanation