Consumer complaint received 2017-09-02
Company: Bread Financial Holdings, Inc.
State: OH
Product: Debt collection
Sub-product: Credit card debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt is not yours

Complaint:
On Wednesday morning, XX/XX/XXXX, I received a phone call about a credit card debt that had been charged to me that was in collections in the amount of {$65.00}. A caller who identified himself as " XXXX XXXX '' stated that the debt was connected to a XXXX Credit Card. I told him that I never signed up for a XXXX credit card. He stated that he represented XXXX XXXX that handled collections for XXXX credit cards. 

I told him that I rarely shop in XXXX and when I pay it is either in cash or with a debit card. When I asked him what these charges were for, he said that he could not find that information in his records. I told " XXXX XXXX '' that I did recall a XXXX check-out employee promoting a customer loyalty card and a credit card. I declined the credit card but agreed to the loyalty card. I told XXXX XXXX to note his records that I was disputing this debt. When I insisted on a transfer to either XXXX customer service or to his XXXX XXXX supervisor, I was disconnected. 

I thought " XXXX XXXX 's '' call was a senior citizen scam because there was no phone number that flashed up on my telephone when he called. When I asked " XXXX XXXX '' for the phone number to XXXX XXXX he gave me XXXX. I told him that I would be calling and writing directly to XXXX and to XXXX XXXX about this situation. When I asked to be transferred to his supervisor or to XXXX Customer Service, " XXXX XXXX '' disconnected me. 

The following morning, Thursday, XX/XX/XXXX, I received another call ; this time from " XXXX XXXX XXXX. '' He also stated that he was from XXXX XXXX and accused me of having a XXXX credit card debt. When I asked him when this account was opened, he gave me the date of XX/XX/XXXX. He said that XXXX XXXX had no record of any payments ever having been made on the account since it had been opened. He also stated that the amount that I was responsible for was {$65.00}. 

One of the most uncomfortable issues I had with both of these XXXX XXXX calls was I had to identify myself by name, address and the last 4 digits of by Social Security Number. " XXXX XXXX '' also stated that my record did NOT show that the amount charged to me was in dispute as i had told " XXXX XXXX XXXX. '' However " XXXX XXXX '' stated that he would take care of making that notation on my record. 

When I asked " XXXX XXXX '' to transfer me directly to XXXX Customer Service, he gave me the following " Customer Care '' number of XXXX. Dialing that number led me to " XXXX '' who also asked for my personal information prior to engaging in a conversation. " XXXX '' identified himself as a member of the XXXX XXXX collections department. I told " XXXX '' that I had asked to be connected directly to XXXX Customer Service, but that XXXX XXXX employees were just referring me in a circle within XXXX XXXX. I let him know that I was very upset at what I was beginning to understand as a fraud situation, where a credit card account was opened in my name without my permission. 

I explained to " XXXX '' as I later had to explain again to " XXXX '' in the XXXX XXXX Fraud Department on the morning of XX/XX/XXXX, that it was becoming apparent to me that I had become the victim of a problem that originated at the XXXX cash register check-out. I recalled that a young XXXX clerk presented a loyalty shopping program and credit card as two separate items. She had difficulty explaining to me the features and benefits of the program. I like loyalty shopping cards. I do not like credit cards and I made that point at the cash register to the employee. I did recall that an older woman assisted the younger clerk at the cash register with some in-puts. The way the program was explained to me, I was simply providing my information for a loyalty shopping card ; not a credit card. 

More importantly, I paid whatever I owned XXXX either in cash or by a debit card when this " transaction '' apparently occurred back in XXXX of this year. " XXXX '' transferred me the " XXXX '' in the XXXX XXXX Fraud Department. I recounted the entire problem to her. I also asked her what I had supposedly charged. No one at XXXX XXXX could answer this question. " XXXX '' stated that I had charged {$3.00} She could not tell me what this charge was for. 

At this point, I absolutely knew that I had become a victim of fraud that probably originated at the XXXX store, either by an ill-trained ; incompetent ; or " over-incentivized '' XXXX employee who was under pressure to sign-up as many customers as possible on credit cards, presented as a loyalty card. 

The other possibility is that XXXX XXXX could be at fault, although I did not discuss that with their representatives. The reason I believe that possibility is that " XXXX '' in the XXXX XXXX collections department told me that his employer does the credit card program for XXXX and other major retailers. Someone at XXXX XXXX could have misinterpreted or purposefully channeled my information into a credit card program which I never agreed to. 

The reason I think XXXX XXXX may have played a role in victimizing me was their economic incentive. When I asked " XXXX '' in the XXXX Fraud Department what I supposedly charged for {$3.00} she could not tell me. I would not enter a major retailer like XXXX and charge such a small amount. When I asked why I was being held accountable for {$65.00} when the original charge according to them was only {$3.00}, she stated that {$65.00} amount represented late fees and finance charges, all profit for XXXX XXXX. 

On the advice of my XXXX Counselor, I am filing this report and taking other steps to have derogatory information connected with this phony XXXX account removed from my credit reports. The XXXX store where this happened is located in XXXX, Ohio at XXXX XXXX XXXX, XXXX Ohio XXXX. Their phone number, which I have not called yet about this situation is XXXX. It is the only XXXX store I have shopped in this calendar year. I may never return after this situation. 

" XXXX '' in XXXX XXXX XXXX Fraud Department stated that she would take the following steps : 1. ) Mark the account as fraud 2. ) " balance out the account to XXXX '' 3. ) remove the late fees and finance charges 4. ) " Once the account is at XXXX, she will issue a letter to all three credit bureaus that the account and the inquiry are to be removed 5. ) and, as I requested, that I be copied on that letter sent to all 3 credit bureaus about all of these actions. 

I am reporting this to the FTC/Consumer Financial Protection Bureau because as a senior citizen, I believe that someone either representing XXXX XXXX or XXXX XXXX  targeted me in this situation and tried to take advantage of me. Also, I needed to document this issue as I pursue a 90 day fraud alert with all three credit bureaus. I did not report sooner, because I do not have internet access at home and had to wait until the weekend to file this report from a public library computer. Also I am very uncomfortable because in dealing with XXXX XXXX, they asked for and received from me my personal information. I trust neither them nor XXXX. I also intend to file a complaint with the Ohio Department of Commerce and the Ohio Attorney General 's Office,  which is advice from the XXXX Police Department 's fraud unit.

Company response to consumer: Closed with non-monetary relief