Consumer complaint received 2017-12-08
Company: Bread Financial Holdings, Inc.
State: TX
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Problem with fees

Complaint:
I opened an account with XXXX around XXXX of XXXX because I was planning a trip to XXXX this summer and thought it would be beneficial with earning points, getting discounts etc. I logged in and made my first payment for XXXX XXXX with no issue. I have many credit cards and department store cards and all of them I immediately set up on recurring payments. I assumed that I did the same on this card and was surprised when I received a phone call in late XXXX that I was behind on a payment. I explained what had happened to the agent and escalated to a supervisor who advised that this card does not have the function to set up recurring payment but could set them up for a month or two in advance that would be the extent. The supervisor agreed to waive the late fee as a courtesy which I appreciated. She explained that she could set up the next two months of payments and I would not have one due for XXXX since I was paying after the due date for XXXX which left me thinking XXXX and XXXX were set up. I did not hear anything from anyone in XXXX or XXXX so I assumed everything was on schedule. Again received no phone call in XXXX but I decided to log into my account in XXXX XXXX XXXX/XXXX/XXXX XXXX to set up the upcoming payment in XXXX or at least so I thought. I log in to see that the account is past due as of XXXX/XXXX/XXXX and my balance is {$440.00} I am confused at this point and beyond frustrated. I go ahead and go to make a payment and pay not the statement balance not the minimum balance but the current amount due which is reflecting {$440.00}. I scheduled the payment and try to be diligent and re-log into my account late XXXX after confirming amount had cleared my bank account. My account is showing ZERO balance due ZERO minimum due. I thought GREAT I do not have to worry about this card any further and I will call in after holidays to officially close the account since XXXX/XXXX/XXXX was a holiday weekend but there should be no further issues. On XXXX/XXXX/XXXX I open a statement from XXXX XXXX thinking I would see the statement to confirm zero balance to only be surprised that I now owe XXXX which is late fees {$30.00} and interest {$8.00}. I reached out to the company thinking this has to be a mistake. The interest I can understand something that can happened even after payoff but the late fee where did that come from I did not see it posted to my account and I paid current balance due. First off after calling XXXX and speaking with XXXX and going over this and explaining I would like to resolve this matter and avoid filing a complaint. She places me on holds and then transfer me to I believe XXXX who was unaware of the reason for the transfer. She escalates me to XXXX who is a supervisor and proceeds to tell me that the late fee was for me being late on XXXX/XXXX/XXXX and my payment was not made until XXXX/XXXX/XXXX. I explained the confusion again and that I paid the current balance and she questions my intelligence asking did I realize which box I was looking. I replied I was aware of the differences in statement balance current balance etc. After further research she explains the late fee does not post until after the closing date which for me would be after the XXXX. So when I logged in on XXXX/XXXX/XXXX the late fee was not posted but would be and when I re-logged in XXXX/XXXX/XXXX the late fee would still not reflect until the next day. So this company does not allow you to set up recurring payment and then does not reflect a late fee as soon as it happens it will show up after the closing statement. It seems this company does not allow recurring payments as most cards do in hopes of collecting late fess and then when you want to pay off your balance if you do not know that late fees will post until after X date which could then again have you run into not paying something you thought was already done. Had I not opened my statement on an account I thought was paid in full I would have not see there was anything to be paid by the due date of XXXX/XXXX/XXXX and they would have gained another late fee. This is by far the worst card I have dealt with. Most cards in my experience if you incur a late fee it is posted by next day and almost all allow for recurring payments to set up. It comes across as if they are hoping for their customers to fall in these loop holes. I cant even use the point or whatever I have earned because I probably will not be back to XXXX soon. The late fees is now showing on my account as is dated and posted as XXXX/XXXX/XXXX when it was not there on XXXX/XXXX/XXXX.

Company response to consumer: Closed with explanation