Consumer complaint received 2018-10-20
Company: Bread Financial Holdings, Inc.
State: IL
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Problem when making payments
Sub-issue: Problem during payment process

Complaint:
I have submitted a Regulation Z dispute regarding the post date of the last 2 payments made on my account & asking for a refund of all late fees ( {$3.00} charged in XX/XX/XXXX + {$4.00} charged in XX/XX/XXXX ), interest ( {$1.00} charged in each month ), and Account Assure fees ( {$0.00} charged in XX/XX/XXXX + {$0.00} charged in XX/XX/XXXX ) charged. The refund would be equivalent to the balance of both months ' statements given there were no store purchases ; instead the balance was completely driven by late fees and interest on the account ( had my balance been appropriately reflected as {$0.00} both months, it would not have triggered an Account Assure charge ). 

I logged in early this morning ( XX/XX/XXXX ), around XXXX XXXX, to check whether I had used this card for a large purchase at XXXX & XXXX XXXX the other day. When reviewing the activity I noticed late fees & interest were charged in both months. Upon receiving my mailed statements ( for any account ), I schedule a payment via my bank 's bill pay function and select the delivery date as the business day before my due date. I confirmed with my bank both checks ( attached ) were cut & mailed in the 1st couple of business days each month, yet were not processed until 2 weeks later. COINCIDENTALLY,  XXXX XXXX XXXX representatives posted the payment the day AFTER my due date causing fees & interest charges. Additionally, due to those fees and interest keeping a balance on my account, the Account Assure fees were assessed to my account ( whereas if I had a {$0.00} balance, there wouldn't have been any Account Assure fees either ). Reg Z requires a payment be posted as of the receipt date, not necessarily the date the representatives are entering the payment into the system as it may take time to route the checks. Therefore, I find it impossible that a check sent from Delaware to Texas took 10-12 days to arrive, when it is estimated to take an average of 3 business days, but my bank mails them 5 business days in advance to allow extra time. In speaking with  both XXXX and XXXX, they tried to place the blame on my bank or the USPS. That's impossible that in the off-season ( not the XXXX/XXXX  season ) it would be severely delayed and would require double to triple the normal amount of time. 

I spoke with XXXX, Customer Service Representative earlier this afternoon ( XX/XX/XXXX ) and communicated my situation/concern. He was unable to assist me to my satisfaction as after 15 minutes, he only offered to credit XX/XX/XXXX 's late fee ( not even including the {$1.00} interest charge ) as a courtesy. I tried to yet again explain these were wrongfully charged to my account and so I shouldn't be held liable. After no luck, I then requested my call be escalated to a supervisor and was connected with XXXX, Customer Service Supervisor. She also did not address my concerns ; instead she only submitted a payment dispute & asked that I submit the checks as proof via the online Secure Message Center. I have submitted the proof for review, but was practically rushed off the phone after her insinuating there was nothing they would be able to do. Instead, I should send it even earlier than I have and that I should go back to my bank to ask for them to reimburse me. I can only imagine how many people they are charging late fees and interest only due to their processing delays and non-compliance with Regulation Z. It is unfair and quite cruel they are willing to agree it is a long delay between the check being cut and their processing, but not willing to help remove the unjustified charges/fees. There is no logical sense to how they are trying to explain the delay, and I feel they are deceiving people into thinking they received the payments late when it is a processing delay and nothing we can control given it is their center and personnel. If the check was mailed and arrived before the due date, they should not be charging fees and interest because they aren't processing and posting the payments accurately or timely.

Company response to consumer: Closed with explanation