Consumer complaint received 2022-07-18
Company: Bread Financial Holdings, Inc.
State: NC
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Closing your account
Sub-issue: Company closed your account

Complaint:
I have had my comenity ulta rewards card for over a year and made all payments and the account was closed due to " negative prior activity ''. When I called to ask what they said was that due to my current credit that I was considered not credit-worthy and therefore they close my account. They closed it over a month ago and never told me so I was still trying to use my card to get the things that I needed with it but obviously it was declined. 

During the course of this call I also found out that they had closed one of my accounts in the year previously under the same circumstances and never told me. I assumed it was fine since it was a 0 balance and i hadn't used it ( that store isn't near me and i haven't needed jeans ).

I don't understand how a credit company can say that you are credit-worthy to open an account, keep you for a year or two while you are paying the card and using it as needed and doing what you're supposed to do with a credit card, and being an excellent customer, which is what the representative said to me, and then decide that they are no longer credit worthy and close their account. 

By closing these accounts comenity has taken almost XXXX points off my credit report and since these cards were in good standing with zero balances and open they were floating my credit while I paid my other cards with higher balance. Closing these accounts has also negatively impacted me being able to get a sorely needed repair mortgage on my house. 

They also mentioned my Victoria 's secret credit card which was written off by the company after the company realized that they had done something wrong and so I was told it is no longer on my credit report nor is it supposed to be used for determining credit worthiness. It's not even in collections anymore. 

Comenity plays games with people 's livelihoods by arbitrarily closing accounts that are in good standing. I could understand if they were closing my accounts due to non-payment or similar, but they're not even closing them because of anything negative that I have done. Using my credit score against me after I have an already opened account that's in good standing means that if there's any medical emergency etc where I can't pay the money down and it affects my credit score it will now snowball when comenity decides to close accounts due to changes. Comenity is using outside situations that have nothing to do with department store credit cards and accounts in good standing to further alienate credit users. 

This policy ( which according to the representative is industry standard ) of checking revolving credit on their customers and then dropping the hammer on them whether they are good customers or not is absolutely egregious. My medical and school debt should only account for credit worthiness when applying to open an account not 2-4 years later after great customer relations after that customers circumstances change. I could understand if by my circumstances changing I had somehow started missing payments or buying things without the intention of paying it back but you're talking about accounts with zero balances that aren't being used unless they're going to be paid being closed simply because I have other debts outside of my credit card history.

Lastly, Comenity never communicated these closures or issues with me. They said they tried in due diligence but never was i communicated with. Then i was told the onus is on me to write a letter to them detailing why i think i shouldn't have had them closed, but that they won't reopen the account and that it won't help me. So i should beg for my credit but also not expect to get my credit.

Company response to consumer: Closed with explanation