Consumer complaint received 2022-03-11
Company: Bread Financial Holdings, Inc.
State: IN
Product: Payday loan, title loan, or personal loan
Sub-product: Personal line of credit
Issue: Getting a line of credit

Complaint:
I have a formal complaint against your company and XXXX XXXX XXXX XXXX. 
Both companies discriminate against Patrons which are in good standing with XXXX XXXX XXXX XXXX and Comenity Bank by basing their denial simply because of the lack there-of credit and not taking into consideration their relationship with XXXX XXXX XXXX XXXX XXXX XXXX 

Comenity Capital Bank and XXXX XXXX XXXX XXXX XXXX have partnered with offering a credit card connected to the MyChoice Program offered by XXXX. 
The enrollment program stipulates the following : __________________________________ Open and use the XXXX XXXXXXXX to earn XXXX on all of your purchases You're invited to apply for the XXXX  XXXX Credit Card today! Login below and start earning XXXX  and Tier Points! 
You must be at least 21 years of age and in good standing to be eligible for the XXXX XXXX XXXX XXXX XXXX. You must be the age of majority to be eligible for the credit card. If under 21, I understand I am applying for the XXXX  XXXX and will not receive any comps, tier points, or other benefits from this credit card. 




XXXX XXXX XXXX XXXX PROGRAM TERMS ( " TERMS '' ) FOR THE XXXX  XXXX CREDIT CARD IMPORTANT NOTE : THESE TERMS CONTAIN PROVISIONS THAT LIMIT OUR LIABILITY TO YOU, ELIMINATE YOUR RIGHT TO A TRIAL BY JURY, REQUIRE YOU TO RESOLVE DISPUTES WITH US ON AN INDIVIDUAL BASIS AND NOT AS A PART OF ANY CLASS OR REPRESENTATIVE ACTION, AND THROUGH FINAL AND BINDING ARBITRATION. SEE BELOW. 

These Terms govern the use of your XXXX  XXXX Credit Card in the XXXX XXXX XXXX XXXX XXXX ( " Program '' ). Please read these Terms carefully for important information about your rights and obligations in the Program. By participating in the Program, you agree to these Terms. 

In these Terms, " you '' and " your '' mean the Account holder. " We, '' " our, '' and " us '' mean XXXX XXXX XXXX. " Bank '' means XXXX XXXX Bank or its assignees. 

The Program is provided by XXXX XXXX XXXX. XXXX XXXX XXXX is solely responsible for Program operation and may withdraw the Program or change the terms of the Program at any time. The purpose of the Program is to reward customers for their loyalty, including, but not limited to the use of their mycash XXXX Credit Card ( " Card '' ). 

______________________________________________ Since I am an Owner with XXXX XXXX XXXX XXXX XXXX and I am in good standing within this company at the Highest Level of a Patron that a guest can achieve, my eligibilities are there, and my approval for this credit card connected to XXXX should have been approved based on the Terms and Conditions of the program for this joint venture for XXXX XXXX XXXX XXXX XXXX and Comenity XXXX Bank in connection with my Players Level and good standing. 

This joint venture is a fraud and requires a level of credit profile to be approved, yet this credit level for approval is not disclosed within the application process. The approval level and criteria should be based on factors also related to XXXX XXXX XXXX. XXXX since it affiliated with the program to offer credit through your company for its players ( in good standing ). I think a guest that has reached the highest level of its promotional program should be a considered factor when considering credit under this joint credit card program. 

I have determined that the Bank and XXXX XXXX XXXX XXXX has engaged in unfair and deceptive acts and practices in or affecting commerce, in violation of section XXXX of the Federal Trade Commission Act ( Section 5 ), 15 U.S.C. 45 ( a ) ( 1 ), stemming from the marketing, promotion, and sale of certain add-on products associated with its credit card programs. 


Both companies are engaged in discriminatory lending by excluding basing credit on a person 's credit report, and not taking into consideration that persons relationship with XXXX XXXX XXXX. 


Unfair, deceptive, or abusive acts and practices ( UDAAPs ) can cause significant financial injury to consumers, erode consumer confidence, and undermine the financial marketplace. Under the Dodd-Frank Act, it is unlawful for any provider of consumer financial products or services or a service provider to engage in any unfair, deceptive or abusive act or practice. The Act also provides CFPB with rule-making authority and, with respect to entities within its jurisdiction, enforcement authority to prevent unfair, deceptive, or abusive acts or practices in connection with any transaction with a consumer for a consumer financial product or service, or the offering of a consumer financial product or service. In addition, CFPB has supervisory authority for detecting and assessing risks to consumers and to markets for consumer financial products and services A representation, omission, actor practice is deceptive when ( 1 ) The representation, omission, act, or practice misleads or is likely to mislead the consumer ; ( 2 ) The consumers interpretation of the representation, omission, act, or practice is reasonable under the circumstances; and ( 3 ) The misleading representation, omission, act, or practice is material. There must be a representation, omission, act, or practice that misleads or is likely to mislead the consumer. Deception is not limited to situations in which a consumer has already been misled. Instead, an act or practice may be deceptive if it is likely to mislead consumers. It is necessary to evaluate an individual statement, representation, or omission not in isolation, but rather in the context of the entire advertisement, transaction, or course of dealing, to determine whether the overall net impression is misleading or deceptive. A representation may be an express or implied claim or promise, and it may be written or oral. If material information is necessary to prevent a consumer from being misled, it may be deceptive to omit that information. Written disclosures may be insufficient to correct a misleading statement or representation, particularly where the consumer is directed away from qualifying limitations in the text or is counseled that reading the disclosures is unnecessary. Likewise, oral or fine print disclosures or contract disclosures may be insufficient to cure a misleading headline or a prominent written representation. Similarly, a deceptive act or practice may not be cured by subsequent truthful disclosures. Acts or practices that may be deceptive include : making misleading cost or price claims; offering to provide a product or service that is not in fact available ; using bait-and-switch techniques ; omitting material limitations or conditions from an offer, or failing to provide the promised services. The FTCs four Ps test can assist in the evaluation of whether a representation, omission, act, or practice is likely to mislead : o Is the statement prominent enough for the consumer to notice? 

This credit card application connected to XXXX XXXX XXXX XXXX XXXX is fraudulent, misleading, and in no way connected to their XXXX program ( unless approved ). The disclosures fail to mention that the applicant must be approved to be able to enjoy the programs and promotions offered by the MyChoice programs, thereby, I am filing a complaint with the Department of Justice, Indiana Attorney XXXX XXXX, and the FDIC to investigate my claims and to take legal actions and injunctions to correct these errors. 

My credit application was denied for Lack of bank card information, lack of real estate. So I have to have a bank card and own a house to be eligible for the credit card, even though I am an Owner with the XXXX program. This is an unfair practice and failure to disclose. 

I am demanding this program be corrected to include a proper disclosure between both companies and their personal involvement in this joint effort. The players who have achieved the highest level of MyChoice program be able to take advantage of an approved credit card. {$25000.00} in an award of credit through this credit card and/or through credit at a casino of my choice owned by XXXX XXXX XXXX XXXX XXXX.

Company response to consumer: Closed with explanation