Consumer complaint received 2021-05-05
Company: Bread Financial Holdings, Inc.
State: NM
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Fees or interest
Sub-issue: Problem with fees

Complaint:
I have an account with Comenity XXXX XXXX, by virtue of a purchase I made at XXXX XXXX XXXX in XXXX ( XXXX ). 

In XXXX I submitted a payment which was mailed timely and processed late. The check I submitted in payment for XXXX in the amount of {$130.00}, dated XX/XX/XXXX. That was 4 days prior to the due date. I have no image since it seems Comenitys practice is to not return negotiated checks to the bank. The next statement indicated Comenity processed the check on XX/XX/XXXX, and the transaction hit my bank on XXXX XXXX.Comenity asserts it was received late, although I mailed the payment 4 days prior to the due date which should be sufficient time from XXXX, New Mexico to XXXX XXXX , Texas. Comenity processed it two days after the due date. The transaction hit my bank 3 days later even though they assert everything is processed immediately and my bank shows an electronic transaction. I called to complain and was stonewalled. 

Comeity asserts that their contract with XXXX XXXX bars making adjustments to accounts of any kind. I sent a letter to the CFO of Comenity expressing my dispute. I have also reached out to the merchant. 

I submitted my XXXX payment reflecting the matter was in dispute. I received an email from Comenity that did not indicate a subject, and when I attempted to get into their web site, I could not. I sent a note to them on their contact page explaining my difficulty in logging on. No one has contacted me about this matter. 

Instead I received another statement, assessing another late fee because I did not pay the additional {$5.00} minimum payment assessed in the prior bill, instead paying the regular amortization of the note at {$130.00} per month. They also assigned minimum interest ( {$2.00} on a {$5.00} difference ). With other lenders I do business with a matter in dispute is held in abeyance during the dispute. Not so with Comenity. 

I identified numerous complaints against Comenity from other sources, including CFPB. My experience with them is not unique. It is evident that Comenity has no intention of resolving this matter. Indeed, their behavior is more like a loan shark. 

I have submitted a complaint to the Attorney General concerning the unfair trade practices at Comenity.

I remitted a check for $ the full outstanding balance of the loan, less disputed fees and interest, and requested they close the account.

I will not be paying the late fees or interest charges. They expect me to simply believe the assertions of their staff that they process immediately. I know that Covid has disrupted operations with many organizations, and given the processing date disclosed by Comeity, and the three days the transaction took to clear my bank their assertion is suspect. Moreover, according to XXXX the USPS takes 1 3 days to deliver a first class letter. And if by chance Covid caused a delay in delivery, other entities are making allowances for these special circumstances, even the IRS. In any event, since this was a zero interest loan I suspect their intent all along was early discharge. That certainly explains their rapacious assessments. 

I request that you contact Comenity and require them to discontinue their usurious practices, remove all assessed fees and interest, and close the account as I have requested.

Company response to consumer: Closed with explanation