Consumer complaint received 2020-08-26
Company: Bread Financial Holdings, Inc.
State: CA
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:
I have been a customer of XXXX for over 7 years, maintaining a charge account for the entirety of my relationship in good standing, no late payments ever, history of increased limits, etc. XXXX has Promotional Terms for purchases over XXXX $ which need to be paid in 12 months of time. Just about every year, I do at least one, if not multiple " promotional purchases ''. As it's been explained to me multiple times in the store, the payments will essentially divided in 12 months worth of payments and then become apart of the " minimum '' due on the account. My account has been on Auto Pay for the longest time and with the confidence of the store employees, I presumed that my payments would adjust accordingly and continue to be paid ( which they always have been since I've never been late ). This is something I have done so many times, I don't even think twice about it anymore. XXXX never seemed to deviate from the standard of this promo purchase and the same information was communicated to me by store employees. Today, I went online to review my account and make a new purchase, as such I went into history on the account and noticed a finance charge, and subsequently, a couple of other smaller finance charges. I was charged XXXX. Completely baffled, surprised and flabbergasted I went to further review. Not completely sure, as I'm reviewing my statements the payments are being covered ... XXXX is even adjusting my minimum payment amounts to keep up .... What's going on here? Still confused, I called XXXX/Comenity for clarification and a refund. From what was explained from the first person, XXXX does not maintain proper " minimum payments '' to ensure the " minimum promo purchase payment '' is satisfied in a timely manner. Their system, unlike other institutions whom clearly and conspicuously allow you to easily navigate through the different types of owed balances and when they are due, are uneasy to follow and confusing. I thought I was charged XXXX TWICE just based on my initial review -- it's confusing for the consumer. The explanation didn't sit well with me either. I was told it's my responsibility to review my statements each month as the PROMO PURCHASES DUE DATE fall outside of your actual account statement cycle and as such, there are different due dates. THIS IS CONFUSING. This is so confusing to consumers and deceptive when the store employees don't communicate that nor give us anything to tell us that. Even as I review my statements, I'm confused and I worked in a XXXX for 9 years alone aside from my other financial experience. At this point, XXXX is saying it's my fault. I should review the statements every month, I should ensure my payments are being made on the correct dates DESPITE having AutoPay set up and that I will get no refund. None. I have been a client for over 7 years, no late payments, never really called about a problem, nothing. Even the person on the phone remarked my perfect history yet can not offer a refund as a courtesy for a one off situation. okay. I asked to be escalated to a supervisor, I spoke with XXXX. XXXX tells me not to rely on the store employees whom are selling me these promo purchases as they do not fully understand how they work. In fact, she suggested every time I make a promo purchase that I should call into XXXX myself and take extra time to make sure they have my account proper. Why would I have to do this? XXXX is the one whom set me up with a charge account, offer Promo Purchases by store employees who have no idea what the terms are and can not effectively communicate them and equally, I've received no kind of written, printed, emailed contract about how this all suppose to work at the time of purchase. My last payment for XXXX for the eldest Promo Purchase, in addition to the other portion of minimum payment was received a short time AFTER the due date of the promo plan, and as such I was charged the entirety of the interest, XXXX. When the month prior they took the minimum of XXXX, so you're telling me XXXX calculates the payment as such that it will literally leave XXXX $ leftover to cause you a XXXX in finance charges. The practice of the company seems deceptive and unfair. From the store experience to speaking over the phone. I had full reliance on the company ; my history with them, the store employees and now I feel like I have to go back 7 years worth of statements to see how many other times this may have happened and I did not notice. XXXX XXXX sets up a charge account with one due date, allows for multiple " promo purchases '' which all have different due dates and their minimum payment doesn't exactly coincide with what is literal and proper. My biggest question also is why wouldn't XXXX 's algorithms know to take the extra amount a month prior in their minimum payment calculation to ensure my promo purchase is covered by it's due date? Again, if I'm having an issue and I'm extremely privy to statements, credit, banking, etc then I can not imagine any other consumer understanding this especially if they make multiple " promo purchases ''. XXXX listened and I thank her for that but there was no kind of resolution to my issue. XXXX is being so deceptive in their system and how things are aligned and calculated and as such I, the consumer, am unfairly having to pay interest charges. XXXX needs to take a better control of these things and how they work. Having 4 different due dates where your minimum isn't even covering your promos and your store employees are providing lackluster incorrect information on this " contract '' is again, unfair, deceptive and violating a lot protections we have in place as consumers. All I wanted was a refund and a change in their process. This can't be how they do business or treat customers they have had for over 7 years in a perfect standing. I deserve better than that and I CERTAINLY DESERVE to be provided with accurate, concise, clear and conspicuous " terms '' of said " promo ''. XXXX additionally needs to not be so deceptive in their communications of how these work with the charge account and payments being made with the dates set. It's too much and too confusing. 

XXXX Statement : as of XX/XX/2020, Payment Due Date XX/XX/2020 XXXX reflects Promo Purchase that must be paid XX/XX/2020 XXXX. 

How would I know that the XXXX set minimum by XXXX and on the statement would NOT cover the XXXX if I didn't review the statement? If the store employees are telling me things are fine based on having auto pay set up then why do I have to go above and beyond to see things. Years and years of nothing wrong happening and I would just never know. XXXX couldn't explain to me why this was happening and if I myself had made some kind of human error with the autopays. 

XX/XX/2020 - XXXX charged in interest based on statement as of XX/XX/2020. 

XX/XX/2020 - Called in to ask and review. Also, website shows two entries of interest XXXX and then two other charges. Unclear. Noted on that, she said it's confusing but I was only charged once the XXXX As I continue to review my statement, I only owed XXXX LEFT OVER AND THAT'S WHY I'M GETTING CHARGED XXXX. Again, that's crazy! How did the prior payment NOT cover what is owed?????? That makes no sense and again, that's not fair!!!!! The payment of XXXX made the month prior should have all gone towards the oldest promo purchase, instead they did all but XXXX and that's why I wound up getting charged XXXX + additional charges. That. Is. Crazy.

Company response to consumer: Closed with explanation