Consumer complaint received 2019-09-18
Company: Bread Financial Holdings, Inc.
State: FL
Product: Checking or savings account
Sub-product: Other banking product or service
Issue: Problem with a lender or other company charging your account
Sub-issue: Transaction was not authorized

Complaint:
This complaint is about accrued interest that was unfairly charged to my transaction account that is being financed by Comenity Bank. The transaction was for furniture I purchased at an XXXX XXXX XXXX XXXX. 

I have attempted to justify with Comenity Bank that, due to its unfair business practices, it has charged accrued interest to my account which it is financing, and would like for the bank to reverse the interest charges. The bank has refused to reverse the interest charges. 

This is what happened. In XX/XX/2017, I purchased furniture from an XXXX XXXX XXXX store and the transaction was financed by Comenity Bank. Initially, monthly paper statements were mailed to me which I used for making my monthly payments by returning the payment stub attached to the front page of the paper statement and my payment in the form of a check. I was very contented receiving the paper statements and mailing in my monthly payments. However, the bank provided an option to enroll in online payments which means I would no longer receive paper statements. Satisfied using online payments for many of my accounts, I decided to sign up for the online payment option Comenity Bank offered. 

On the online payment screen titled Make a Payment, the bank provides account information such as payment amount, payment due date and account balance. However, on the payment screen, no information is provided about promotions which is what my transaction is categorized as. Not only is promotion information not mentioned on this screen, but a crucial piece of information, the expiration date of the promotion, is not mentioned. This date is crucial to customers because once it has passed, the bank can charge you accrued interest for all your payments up to the expiration date. Since Comenity Bank chose to place all other account information, except for the promotion information, particularly the promotion expiration date, on the payment screen, I was not forewarned of the expiration of the promotion on the payment screen, and, hence, was charged accrued interest on my account by the bank. Had this promotion information been posted on the payment screen like all the other account information, I would have certainly been aware of the approaching promotion expiration date and pay my account on time and in full. 

Upon inquiring about the accrued interest charged and added to my account, and why I was not warned about the approaching promotion expiration date on the payment screen, the bank informed me that promotion information was stated in my monthly statements. I also inquired from the bank why is it that all other information about my account appeared on the payment screen but the promotion information was excluded from the payment screen. The bank did not provide an explanation why the promotion information was excluded from the payment screen. I believe that since the bank offers an option for paperless statements and online payments, the bank should be held responsible for strategically placing all account information, including the promotion information, where it can be easily and immediately seen upon accessing the online payment option to warn and notify customers of critical information and upcoming deadlines dates. 

I believe this bank is insincere in its business practices and its intent was to deceive so that it can benefit from it. I believe that the promotion information, particularly the expiration date, was intentionally withheld from the payment screen to avoid alerting me of the upcoming promo expiration date so that the bank can benefit by claiming the accrued interest of the account. Had I known this was how the bank handles its online payment option, I would have rather continued receiving paper statements. I thought that by enrolling for the online payment option, it would make the payments on the account easier and quicker for both the bank and myself, but instead found myself in this predicament with this bank. Not only did this bank benefit from charging the accrued interest on my account but also saved on efforts and expenses in preparing and mailing paper statements. 

In my correspondences to rationalize with the bank to reverse the interest on my account, I recommended that the bank place a notice on the payment screen to remind customers about crucial promotion information, including the promotion expiration date. The bank acknowledged and thanked me for my recommendation and began implementing it soon after. Upon accessing the online account, the promotion information is now placed at the top of the payment screen and is immediately visible. The bank further stated that my suggestion will be used for future customers. I inquired from the bank why is it that future customers can benefit but that I could not benefit since it was my suggestion. The bank, however, would not provide an explanation. 

Due to this banks insincere business practices and my unpleasant experience with the bank, I decided to research customers satisfaction with the bank. I was not surprised to find hundreds of dissatisfied customers and derogatory comments about their experiences with the bank. Having reviewed some of these comments/remarks, it was not difficult for me to understand why I am having problems with this bank. There were numerous and varying problems experienced by customers, some very similar to the problem I am experiencing. Based on the extent and nature of these complaints, I believe that this bank is disloyal to its customers and unethical in its business practices, and recommend that the bank be investigated for its business practices and treatment of customers. This, of course, is a separate matter than what I am pursuing which is to reverse the interest that was unfairly charged to my account. 

I certainly appreciate any assistance CFPS can provide in helping me to reverse the interest that was unfairly charged to my account by Comenity Bank. 

There are 3 document attached. These are their descriptions : 1. 'Attachment_1.pdf ' is my request and reaasons for Comenity Bank to reverse the accrued interest I beleive it unfairly charged to my account.

2. 'Attachment_2.pdf ' is Comenity Bank 's response to 'Attachment_1.pdf '. 3. 'Promo_Notice.PNG ' is a promotion notice that was placed on the 'Make a Payment ' screen in the online account option after I suggested to the bank that the promo information, including the expiration date, should be placed on this screen. Sincerel
y XXXX XXXX

Company response to consumer: Closed with explanation