Consumer complaint received 2019-08-16
Company: Bread Financial Holdings, Inc.
State: MD
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Fees or interest
Sub-issue: Unexpected increase in interest rate

Complaint:
I have had a Victoria Secret Credit Card as well as a Children's Place Credit Card (both through (Comenity Bank) for a couple of years now. I've always did online payments and transactions as far as billing (paperless communication activity). However, after making payments of $XXXX on a monthly basis I was curious as to why my balance never really seems to disappear which made me go online and take a look at my billing. After viewing my statements on both accounts I noticed that there were a lot of unexplained charges on my account. Therefore, I contacted Comenity Bank to inquire and obtain explanations on the method of billing on my accounts and try to get clarity on those charges. I spoke to 3 different agents through 3 different calls in the time span of almost 2 hours. One agent seemed to be very confused on my billing and when asked why am I seeing 2 finance charges and a late fee every month on my billing and kept placing me on hold. He even had the ordasity to tell  me that one was for a promotional plan account that I signed up for in XX/XX/XXXX(XXXX XXXX,  to be exact) and the other was for my account. Finally after him placing me on hold on last time he hang up on me after I asked him when did I sign up for a promotional plan and where which he couldn't explain because I already knew that wasn't true because I haven't used that card in a very long time as I rarely use that card to begin with. Keeping this in mind I called back and got another agent that proceeded to give me another long outdrawn story about how my billing is not charged two separate finance charges and hearing me state I'm looking at the bill right now he placed me on hold. He came back and stated that my bill is like that because I have to make my payment on the due date no later than XXXX their time or they automatically charge a $XXXX  late fee. So I stated to him listen that still doesn't explain the two finance charges every single month that only explains the late fees with no grace period. He then states can I place you on hold for a second in order to get some information from my supervisor. At this time I state to him no you may not place me on hold again can you just place the supervisor on the phone and he says sure. When the supervisor (named XXXX who refuses to give a last name) gets on the line she begins to try to explain the billing after I asked about the two separate finance charges and the late fee grace period as well as the promotional plan I supposedly signed up for. XXXX   then goes on to say that my APR rates have changed continuously over the period that I've held these accounts and the two finance charges reflect the separate finance charges during the times of purchases. So I asked her to elaborate and she went on to say well your APR was 27.49 at one time of purchase and then it went up to 27.74  and now its 28.24  do we calculate those entities all together for finance charges and we have np grace period for payments therefore if you pay after your due date at XXXX there is a XXXX late fee added regardless. I then ask XXXX  so you guys  just increase the APR rate every other month at will without notice to the consumer in advance? She says well every month on your bill if you look all the way down on page 3 in the small print the interest rate is posted there. I then ask but why on page 3 away from all the billing activity and summary of account and in small print. I also asked why do you inform us after you have already increased it and not before, is that fair to the consumer? I stated many consumers now elect for paperless billing and online payments is that why you guys do it taht way in hopes that we never look past the account summary page? I then asked her do you guys even adhere to the Military Lending Act? I stated that according to the MLA this contract should be null and void for myself because you guys are being very deceptive and not precise on your rates or anything. I told her that not only do you change the APR rate at will but there is no warning and it's not even annually its whenever. She then said I'm pulling up the SCRA  and stated to me that she was reading it now and stated that well you have to inform us that you are military because we don't know unless you tell us. I said no ma'am, again the MLA is different from the SCRA and it includes credit cards now and we as the consumer do not owe you the burden of verifying our status its your job as the financer to pull it and now that I'm telling you this you don't seem to have any intentions of rectifying the situation and crediting my account. She states I don't know what I'm suppose to credit your account ma'am. I said for one those interest fees are bogus without forewarning, two late fees require a grace period of 5 days and last but not least you refuse to even give me your name as a debt collector. At this point XXXX  (no last name) states well I can send this to dispute ma'am that's all and I told her no need I'll be reporting this bank and companies to the Consumer Financial Protection Bureau as you guys appear to be just another deceptive and predatory lender preying on the military through credit card rates like everyone else.

Company response to consumer: Closed with explanation