Consumer complaint received 2019-12-02
Company: Bread Financial Holdings, Inc.
State: TX
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint:
I have held a Comenity Bank managed XXXX XXXX store card for many years and have always paid the full balance of the card withinin the terms and conditions of the card. In XX/XX/XXXX ( having previously had a XXXX  balance ) I received an email statement which explained I had a balance due and proceeded to make the payment in full. The following month ( XXXX ) I received another email which showed the balance of the card and an additional amount ( but no indication of late fee or payment ), but I expected the prior month 's payment would clear and I had returned the other items which would have made a XXXX balance. After that month I received only notifications of a statement being ready by email ( since I was elected into paperless billings ) but there was no information on balance due in the emails and zero indication payment had not been received or a late penalty was assessed. During this time I also received zero phone calls, text messages, or communication otherwise that my payment had not been received by XXXX XXXX. Upon finding out in XX/XX/XXXX that there was a balance still on the card, late payments/penalties, and a negative credit report on my card I immediately paid the full balance due and submitted a dispute for the credit report item as I was never aware there was any balance due that had not been paid. After XXXX XXXX/Comenity bank denied the dispute, I called them on a recorded call on XX/XX/XXXX and spoke to an account manager ( XXXX ) for 43 minutes explaining the situation. He states that Comenity Bank received a request to not contact me which is why I was never told there was a payment not received in order to remedy the issue. I am not knowledgeable of any such request asked repeatedly for confirmation of who, when, how this request was made - by phone or in writing. XXXX stated that they have no documentation of the request they can provide but that Comenity Bank supposedly could not contact me in any manner to indicate payment was not received. In the end I have been charged ( and paid ) more than {$120.00} in late fees after attempting to make payment on the balance and receiving zero notification for months from XXXX XXXX/Comenity Bank that payment had not been received. Further, without notice in XXXX, they suddenly closed my card and told me there was some type of " fraud '' dispute which led to the closing of the account. I have not filed any such dispute and feel that the bank has mishandled my account. I would like written acknowledgement from XXXX XXXX/Comenity Bank that they failed to notify me that payment on the account was not received via faxed letter to XXXX, a refund of the late fees for XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX, a copy of the letter and/or date of phone call and confirmation of this alleged " request to not contact '' they have stated, and for them to place an emergency update with all 3 credit bureaus correcting the misinformation they have reported. This misrepresentation on my credit report is negatively impacting my ability to close with a favorable rate on my home loan in XXXX and if it is not remedied in 7 days, I will be subject to a significant amount of closing costs, interest rate increase, and expenses due to Comenity Bank 's failure to correct this issue. 
In additional to all of this : 1 ) Under the Fair Credit Reporting Act 623 - 15 U.S.C. 1681s-2 Comenity Bank is responsible for notifying me in writing that they have reported negative information to the credit bureaus. They never sent such notification to me.

2 ) I have written documentation that states that if Comenity Bank issues such no-contact order if requested ( which I did not request ), they will also not authorize future charges. As they refuse to furnish documentation supporting this alleged " no-contact '' request, they were subsequently allowing authorized charges to be made on the XXXX XXXX account up to XX/XX/XXXX ( 5 months after they allege they were instructed not to contact me ). This appears to be in violation of their own company policy. 
3 ) Comenity Bank made zero attempts to notify me that they had not received payment which is also their company policy.

4 ) Comenity Bank oddly does not report the many favorable on-time payments I have had on the account since XXXX only reporting on-time payments since the end of XXXX.

Company response to consumer: Closed with explanation