Consumer complaint received 2022-03-05
Company: Bread Financial Holdings, Inc.
State: TX
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Fees or interest
Sub-issue: Problem with fees

Complaint:
On XX/XX/XXXX, XXXX XXXX submitted an online payment to Comenity Bank to pay off balance on an interest free promotion program. I contacted the bank several times on XXXX XX/XX/XXXX, XXXX, XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX after noticing that my XXXX XXXX Bank records showed that the check had been received but had not been cashed. I called XXXX XXXX on XX/XX/XXXX to find out the status of my payments and the representative contacted Comentity Bank on a recorded line which has since been transcribed as proof of payment for me. The Comenity Bank representative stated that they had not received the check and that it might have been lost form the lockbox. It was suggested that a stop payment be issued. and an ACH be issued instead. The amount that I was told was due was {$140.00} and XXXX XXXX provided the Bank XXXX routing information and I provided my account number and authorized the payment. The Comenity Bank representative provided me with a confirmation number and told me that I would receive a statement showing a zero balance due. The statement I received in XXXX reflected interest and late charges for non payment. I contacted Comenity bank on XX/XX/XXXX and was told that there was no record of any payment ever being issued. I issued a dispute and 3 days later, I was reported to all 3 Credit Reporting Agencies as having a delinquent payment. I contacted Comenity Bank Customer Service on XX/XX/XXXX and was told to issue a letter to the Disputes Department. I received a letter dated XX/XX/XXXX from Comenity Bank stating the wire payment in the amount of {$140.00} was not processed due to a system processing error. Comenity Bank now maintains that I owe {$170.00}. I refuse to pay more than was told that I owe Comentity -- I will jot pay finance charges that are due to Comenity 's inability to collect checks from their lockbox and to process a wire. Furthermore, my request to Comenity to rectify the wrecking of my stellar credit record has gone unanswered. Reporting an account in dispute to the credit reporting agencies is against the Fair Credit Reporting Act. I have sent certified letters to XXXX XXXX as we'll as to Comenity 's Bank Dispute Department and the response form the Credit Department is to the effect that I owe finance charges due to the expiry of the promotion balance. If. Comenity was able to deposit checks from the lock box and/or figure out how to process an ACH payment, there would be no finance charges. I refuse to be charged for Comenity 's Banks negligence and ineptitude. I have filed a formal compliant to the XXXX  of OH and have made Comentity Bank aware that my complaint of the same nature has been filed by thousands of their card holders. All of this has fallen on deaf ears. Just today, XX/XX/XXXX, I received a letter from Comity stating that the investigation of my third dispute has concluded and that I owe finance charges despite the fact that on XX/XX/XXXX, the Bank acknowledged in a letter dated XX/XX/XXXX that my wire payment on XX/XX/XXXX had not been processed due to a system processing error.

Company response to consumer: Closed with monetary relief