Consumer complaint received 2020-01-14
Company: Bread Financial Holdings, Inc.
State: FL
Product: Debt collection
Sub-product: Credit card debt
Issue: False statements or representation
Sub-issue: Attempted to collect wrong amount

Complaint:
Good morning! My complaint is with Zales Jeweler/Comenity Bank. I reference both because my credit card says Zales, my credit card statements reads as Zales and the number listed for customer care is answered as " Zales customer care ''. Apparently, a couple years ago, Zales partnered with Comenity Bank ( which I was unaware of as I have been A Zales credit card holder 8+ Years ). For the entire year that I have been trying to understand my account and dispute charges, I was not talking to Zales, it was Comenity bank. It was very misleading and very insulting as if I were stupid and without any help. 
I purchased an engagement ring in XXXX  of XXXX on an interest free promotional year plan. In XXXX of XXXX, I visited my local Zales Jeweler and asked about a return because I did not love the ring. The sales associate recommended their " upgrade promo '' to trade in my current ring for one of double value. I was hesitant because the cost was double, however, he reassured me that I would have another year to pay it off. This is where my nightmare began. Instead of doing the transaction as an upgrade/ trade in, he rang me up as a separate transaction with a separate year promotion. I was under the impression that my single account was extended for a promo until XXXX  of XXXX. I did not know that he created a separate purchase with a promo until XXXX, the store manager, told me recently on XX/XX/XXXX.  This entire time I have been paying more than 3x my minimal payment not understanding that I had two promotions recurring at the same time with only 3 months difference in expiration. After I finally discovered that my transaction was ran incorrectly, I contacted Zales Corporate office and filed another dispute. I did file a previous dispute before but I thought it was Zales that I filed it with and recently discovered it was actually Comenity Bank ( I did not know that because they answer the phone as Zales customer care ) and it went nowhere. They do not disclose that they are Comenity bank unless you ask. Last month, I received my year to date statement and was horrified to see that I have paid over {$1000.00} dollars in interest fees plus accumulating monthly finance charges every month. This is also with still owing another {$2000.00} on my balance. I owe more currently than the original purchase price. I called Comenity bank to find out how this is possible because I have never missed a payment, I have never made a late payment and have always paid at least double over my minimum payment. Comenity informed me that my money was applied to the minimum balance and any extra is applied to the highest balance, not the promotion expiring first. All this time I thought I was making payments to a single account and for the last year and a half they were controlling where my money was allocated for two promotions. Now that I know I have two accounts and how they distribute the money, I was set up for failure. There is no possible way I could have paid these off on time. I spoke to Senior management ( XXXX ) at Comenity Bank and she sympathized and completely understood my situation and the mistake on behalf of Zales. She opened a dispute ticket and said that if Zales agreed that it was a mistake, they would remove the interest charges and I could pay my balance off in full. I also asked if I could transfer my balance to another credit card to keep me from going further into debt and Comenity refused. I am trapped. I have been mislead and my statements do not show where my money is allocated. I have used interest free promotions before and Comenity Bank is the only one that applies money to the highest balance, not the promotion expiring first. I have not heard back from either company regarding my dispute.

Company response to consumer: Closed with explanation