Consumer complaint received 2020-04-12
Company: Bread Financial Holdings, Inc.
State: HI
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Unexpected increase in interest rate

Complaint:
XXXX was recommended by my XXXX XXXX, so I took the offer. My initial charge was {$4100.00}. I did not get a bill of any type for seemingly a while. Upon the beginning of payments with XXXX, I had no clue the amount due or due dates so I set up an arbitrary automatic bill pay of $ XXXX/month through my bank and continued that way for years. I have an extensive travel schedule being away from home so I wanted to assure I was covered. Over the years, I rarely if ever got a bill from XXXX it never crossed my mind since it was set to automatic bill pay. It was not until XX/XX/2020 that I first logged into my account to see a deeper understanding. 

With Covid-19 impacting everything, I was stuck on travel and returned home in XX/XX/2020. I was surprised to see an invoice from XXXX, but more surprised to see a random interest charge of over {$1500.00}. That seemed odd to me since I had paid well over {$3600.00}, with very little balance remaining. On XX/XX/2020, I called into customer service and Initially spoke to XXXX who was unable to assist, so they transferred me to XXXX an senior account manager who would be able to help. I asked if she had the authority to correct the mistakes and she said she did, only later to determine she in fact was lying. XXXX was rude and continued to not discuss my account with me. She said that we warned you that some promotional period was going to end. I, in fact had never been warned. Even in the bill I have in XX/XX/XXXX, there was no mention of a promotional period anywhere. So I told her I am disputing this charge and she said fine. I was not provided a notice of dispute or anything else related to this. Angrily, I left the phone call. She claims I was notified. I was not, there is more more to discuss. If I had notification, I would have paid the balance. 

With no income from COVID 19, I had been calling my credit card companies to request a forbearance and did so to XXXX on XX/XX/2020. I spoke to XXXX this time, who seemed understanding and kind. He said that in fact, no dispute had been set up, instead XXXX used it as a customer complaint. Her notes on my account said case closed, interest is valid and she closed out the complaint. XXXX essentially acted as the judge jury and executioner and did not investigate or submit my dispute. XXXX noticed that the interest charge was excessive as well. He initiated a formal complaint on my behalf. I also requested COVID 19 forbearance and it was granted. 

Of the initial balance of {$4100.00}, 100 % of that principal has been repaid, so now they are simply charging interest and fees on interest and other fees to try to manipulate and trick me into paying. This is predatory lending. No warning of expiring terms and conditions, interest building on interest only. 

As you can clearly see from my account, there was never a missed payment or late payment. There could never be a logical assumption that I had intent to not pay the account off. I have a 20+ year credit history that shows excellence because I am diligent about payments. If there was a balance amount that I was aware of and a promotional period expiring I was aware of, it would have been paid if I was honestly provided that opportunity. With less than {$500.00} left and staring at a $ XXXX interest charge, thats 300 % interest. 

I formally file a complaint and dispute against XXXX for their intent to trick a consumer into compounding interest schemes.

Company response to consumer: Closed with explanation