Consumer complaint received 2018-02-10
Company: Bread Financial Holdings, Inc.
State: MT
Product: Debt collection
Sub-product: Credit card debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt was paid

Complaint:
1. In XX/XX/XXXX, I opened a XXXX XXXX  XXXX credit card account # XXXX. My first statement did not arrive at my house until after the due date of XX/XX/XXXX so I called the bank immediately to inform them of the situation and ask that they not charge me a late fee. The agent on the phone made it clear that she did not believe me, and would not remove the late fee even if I paid immediately by phone. I live in a very rural area of Montana, and it is not unusual for mail delivery to be very slow. The agent did finally agree to charge me only 1/2 the late fee ( {$18.00} ),  but as I look at my statements I can not see where she made any adjustments to reflect that verbal agreement. Since that time, I continued to send letters with every payment asking that the late fee be removed, but never received any response to my inquiries. 

2. I paid off this account as quickly as possible, since I did not want to continue any relationship with this bank. In XX/XX/XXXX, I had one payment legitimately late due to an unforeseen trip out of town to California to care for my ailing mother who subsequently has XXXX. 

The entire account balance of {$1600.00} was paid off completely by XX/XX/XXXX, except for the 1 1/2 late fees, which I was still writing monthly to see if I could have removed. The banks introductory offer was for no interest if the balance was paid off in 6 months. I complied with those stipulations, paying off the entire account within 5 months, except for the ongoing dispute I was having with them about the 1 1/2 late fees. 

3. It was shortly after paying off the balance ( except the 1 1/2 late fees - {$55.00} ), that I started getting multiple daily phone calls demanding that I pay the bill. I had not received any response from any of the monthly letters I had been sending with my payments, asking that the late fees be removed, so I realized that the bank was not going to remove the fees. It was then that I offered to pay the 1 1/2 late fees to the supervisor on the phone. She declined saying that I now was being charged late fees upon the late fees, so owed much more than the {$55.00}. I refused since the entire account had already been paid off, and she wanted me to pay extra bank fees on top of the original fees. She also told me that no one actually reads any letters that get sent the account with any payments - which I had been doing for 5 months with no response. 

4. I then sent a letter via the banks web site outlining the situation, and the phone call with your agent ( see attached ). It was also from one of those daily phone calls that I got the address for sending a complaint to your bank. Although I did send detailed letters to your Customer Satisfaction Center and Settlements Department, nothing was resolved. All I have received are two form letters, once again indicating that you dont care to even hear me. On XX/XX/XXXX I finally gave up my fight with you, and paid the actual 1 1/2 late fee charges of {$55.00}. 

5. It has been almost a year since that account was paid off and the late fees paid. I continued to write letters indicating that the entire account had been paid, but have heard basically only form letters from XXXX XXXX. In addition, they have continued to charge me late fees & have even gone back to the opening date of the account ( XX/XX/XXXX ), and charged me monthly interest and late fees from that date. The balance now owed is over {$400.00} just from all those fees. 

6. This bank has also contacted the credit bureaus, reporting that I am some dead beat consumer, reporting that this account is unpaid and delinquent. I have a history of good credit with scores around XXXX, and always pay my bills on time. My credit is now less than XXXX, only due to this banks false reporting. 

7. I have contacted the credit companies, who in turn have assured me that they have passed the information and requests along to XXXX XXXX, but again, I have heard nothing from that bank trying to resolve this issue. This is a perfect example of a bank practicing PREDATORY LENDING, and being so big and untouchable that the little individual people like myself have no recourse. I had the audacity to question them about 1 1/2 late fees, and now they are punishing me by ruining my great credit. I paid this entire credit card balance within 5 months of opening the account, and paid all late fees by XX/XX/XXXX.

Company response to consumer: Closed with explanation