Consumer complaint received 2019-07-06
Company: Bread Financial Holdings, Inc.
State: DE
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Problem with a purchase shown on your statement
Sub-issue: Credit card company isn't resolving a dispute about a purchase on your statement

Complaint:
XXXX XXXX and Comenity Bank work together to issue and manage reward dollars for their credit card customers. Reward dollars are earned and can be used toward merchandise, but the customer must buy the merchandise on the store credit card and will then be reimbursed at a later date. XXXX XXXX states that it takes approximately one billing cycle for this refund to appear on the credit card statement. Their literature also states that if a customer needs to return or exchange a product that was purchased with reward dollars, then the reward dollars are forfeited. On XX/XX/2019, I went to purchase a rug at the XXXX XXXX store at XXXX XXXX, DE. The rug was on display, but unfortunately was not available in the store. Therefore, I was told to place an order for the rug at the register, and the rug would come from the warehouse and would be mailed directly to my home. Unfortunately, the sales associate ordered the incorrect rug. I had no idea it was the wrong rug at the time because as customers we are not privy to sku numbers etc..and the picture on my receipt was in black and white so the rug appeared to be the one I wanted. There was no way I could have known that the rug that was ordered was not the rug I wanted. When the rug arrived at my home, I only needed to open a portion of the package to see that the rug was the wrong weave and color. I immediately called the store to tell the associate it was the incorrect rug. The associate who helped me on the evening of XX/XX/2019 was not available, but I was instructed to bring the rug back to the XXXX store and someone would correct the order. So, on XX/XX/2019, I took the rug back to the store and completed this transaction. The associate who helped me saw that the mistake was obvious because the rug I returned was not even on display in the store! She completed the transaction for the exchange, and two days later the correct rug arrived at my home. After all of this, I expected my reward dollars to be refunded to my account in the amount of {$350.00}. However, in XXXX, I received a merchandise credit for {$350.00} in the mail. I learned that this credit was to cover the cost of the rug instead of a refund in the amount of {$350.00} to my XXXX XXXX credit card. As a customer, the merchandise credit does not suffice because my credit card bill can not be paid with it ; it only affords me an opportunity to buy more merchandise. I called customer service and explained the error, and I was told to keep the merchandise credit and that it was their mistake. I called customer service on four occasions to ensure that I would get my credit card refund, and the telephone associates were impatient and unaware of the notes from previous calls I made. I was surprised that the associates were not referencing information in the computer system and seemingly unaware of the transactions and my issue with receiving a merchandise credit. Eventually, on XX/XX/2019, I filed a dispute with Comenity Bank, XXXX XXXX XXXX, XXXX, OH XXXX. I received correspondence in XXXX and another on XX/XX/2019 stating that the dispute was not settled in my favor and the case was closed. I am very unhappy with this decision because essentially I am paying {$350.00} out of pocket for a rug that was purchased with XXXX XXXX  reward dollars, and the only reason I am paying for the rug is because the store associate made a mistake and ordered the incorrect rug. I understand that people make mistakes, but I do not understand why XXXX XXXX won't acknowledge the mistake and refund reward dollars that I have earned. The company should refund the dollars to my store credit card instead of issuing a merchandise credit. The merchandise credit is in XXXX XXXX 's favor because it helps the company make additional profits. 

XX/XX/2019, I called the phone number at the bottom of the letter I received from Comenity Bank ( attachment : dated XX/XX/2019 ) to see what else I could do to resolve this matter in my favor because I felt I was being treated unfairly as a customer. I asked to speak to a supervisor. The woman who handled my call gave me the same options I already pursued and was not helpful. She said there was nothing she could do, and that this issue was my fault for approving the transaction on that day in XXXX instead of checking my receipt before leaving the store. 

Lastly, on a related note, XXXX XXXX states that it takes approximately one billing cycle from the date of purchase to be reimbursed for merchandise purchased with reward dollars. This simply is not true because I have other purchases that are months old and have yet to be reimbursed! Meanwhile, the finance charges accrue while I wait for the reimbursement. It is a system designed to keep customers in debt.

Company response to consumer: Closed with monetary relief