Consumer complaint received 2020-11-21
Company: Bread Financial Holdings, Inc.
State: NY
Product: Debt collection
Sub-product: Credit card debt
Issue: Took or threatened to take negative or legal action
Sub-issue: Threatened or suggested your credit would be damaged

Complaint:
How is it possible that an account that was supposed to have been settled with XXXX XXXX XXXX almost three years ago is now appearing on my credit report in collection with a derogatory remark. I consolidated all of my outstanding debt almost three years ago, and have not had anything negative on my credit report since. 

XXXX XXXX XXXX settled my Wayfair credit card account again, almost three years ago. I have not received anything regarding an outstanding balance or owed amount since it was settled. 
Recently I applied for lower rent apartment and was denied due to a derogatory remark on my credit report. I had no idea what this could have been. 

I looked up my credit history and it reads that a Wayfair account was opened XX/XX/2020, and the owed amount is XXXX I never reopened this account, and did not charge this amount of money. 

Apparently another company XXXX took over Wayfair, and does not have record of my closed account from three years ago. Regardless, I never charged XXXX, never reopened this account, nor have never received any notification that I owed anything because as far as I knew this account was closed and settled. 

I called XXXX ( XXXX ) to try to get this corrected, but there was no resolution and they are saying I owe {$4300.00} which is an amount I never charged. I didn't even have a credit limit for this amount from over three years ago. My credit report is reading that I opened this account XXXX XXXX and have not paid in 8 months - this is absolutely not true. 

I can not understand how I finally got out of debt and have been building up my credit for almost three years, then this appears on my credit report from XXXX company. How is this legal. This company prevented me from moving into an affordable apartment with my son. This one company destroyed my credit - how can this be acceptable. I am a single mom who pays my bills and takes care of my son. What gives this company the right to be able to apply this to my credit report??? Even if by chance the debt consolidator did not settle this once account, shouldn't I have received a bill, notice from Wayfair???? I never once received any notification so how is it possible this company is allowed to destroy my credit in a split second when I have spent three years building it up. With COVID and all the negative in this world, I actually had one positive - a potential affordable home, but because XXXX added an account as opened XXXX XXXX stating has not been paid in 8 months I lost my opportunity. Again, I never opened this account XXXX XXXX, nor have I ever owed this amount of money. At this point I do not know if I need to take legal action for ruining my credit, illegal allegations, lost opportunity for a secure home, XXXX XXXX now XXXX. This is really just terrible, and very upsetting. 

I am hoping you can help in getting this resolved. 

Thank you for your time Stay safe XXXX XXXX

Company response to consumer: Closed with explanation