Consumer complaint received 2018-03-22
Company: Bread Financial Holdings, Inc.
State: IL
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Fees or interest
Sub-issue: Problem with fees

Complaint:
On XX/XX/XXXX I made a {$350.00} payment at my XXXX online account to pay off a 0 % interest promo ending onXX/XX/XXXX. I then checked online a few days after to check my payment due for XX/XX/XXXX which showed a {$0.00} min due.

Even when there was no due for XX/XX/XXXXper the XXXX   account online and automated call, I knew I had 2 expiring 0 % interest promos with a total balance of {$1600.00} ending on XX/XX/XXXXwhich also had substantial accrued interest charges. I am aware that interest accrued charges need to be paid if the balance on the promo plans are not paid in full by the expiration date. I absolutely did not want to pay the accrued charges which amounted to {$1100.00} for promo plan XXXX and {$180.00} for promo plan XXXX. So, on XX/XX/XXXX I made a payment of {$1700.00} online to pay off both promo plans expiring onXX/XX/XXXX

On XX/XX/XXXX I noticed that my balance was not reduced knowing I paid off promo plans that expired inXX/XX/XXXX. I discovered that I was charged the accrued interest rates for the plans XXXX and XXXX which expired onXX/XX/XXXX7. I called XXXX XXXX XXXX  and spoke with XXXX. I initiated a dispute regarding the charges and was told that I will receive a letter for confirmation.

On XX/XX/XXXX I called XXXX XXXX to follow up my dispute and they stated it is still ongoing. Around XX/XX/XXXX I called again to follow-up and they stated that the dispute has been closed and they are still charging me the accrued interest rates. The representative did not give me a reason for their decision and told me it would be stated in the mail dated XX/XX/XXXX.

I received the 2nd and last mail from XXXX in the week of XX/XX/XXXX. The mail datedXX/XX/XXXX explained why they are denying the dispute. Their explanation in the letter states I accrued the interest charges because I did not pay the promo balance in full by the expiration date. I can not accept their decision since I paid the balance of the 2 promo plans expiring on XX/XX/XXXX in full on XX/XX/XXXX.

I called XXXX again to speak with a manager regarding my dispute. He explained that I did not pay the balance of the 2 promos expiring on XX/XX/XXXX which was written on the statements. He also stated the amount was not enough to pay for the minimum due for XX/XX/XXXX. I told him no where in the statement it is written that I had to pay the minimum due plus the balance in full for the promos expiring. I also checked online after I made the XX/XX/XXXX payments for the promo expiring XX/XX/XXXX to ensure no payments are due for XX/XX/XXXXand it reflected a {$0.00} due.

On XX/XX/XXXX I spoke with XXXX, a supervisor and told him to reopen the case since the resolution was not acceptable to me. I had 2 promos expiring on XX/XX/XXXX and told him I wanted the higher balance paid off first if my XX/XX/XXXX payment was allocated first to the minimum due onXX/XX/XXXX and the balance to pay the promo plans expiring onXX/XX/XXXX. It also doesnt make sense that my payment was not allocated to XX/XX/XXXXpromo plans first vs XX/XX/XXXX7 which comes after XX/XX/XXXX. I should have just been slapped with a late fee if my payments onXX/XX/XXXX went to pay for the promo expiring XX/XX/XXXXand there was nothing left to pay for the XX/XX/XXXX min due.

I started my complaint within the 120 day of discovering the discrepancy ( in the XX/XX/XXXX statement receivedXX/XX/XXXX ) dispute and told them my intention is for them to pay first in full the bigger balance which carried the higher accrued interest of $ {$1100.00}. I asked for a valid reason how they allocate if there were 2 plans expiring the same time and they told me its just their process and gave me no documentation. To me this is unfair business practice that they would take advantage for the customer to be dinged with the higher interest accrual even when I tell them within the 120 day dispute window that they need to correct the allocation of payment.

I feel that XXXX  conducts unfair business practices and takes advantage of the customer by not sending documentation of their process and not acknowledging issues/glitches in their system. Specially when their system states {$0.00} due so a customer would not pay that time and then having a big payment for a plan expiring allocated to the minimum due resulting in the customer paying the hefty incurred interest of the promo plan.

Company response to consumer: Closed with monetary relief