Consumer complaint received 2020-01-13
Company: Bread Financial Holdings, Inc.
State: LA
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Problem when making payments
Sub-issue: Problem during payment process

Complaint:
There was a misunderstanding about my XXXX XXXX XXXX account payment in XX/XX/2019 which caused my account to be reported late to all 3 credit bureaus ; XXXX, XXXX, and XXXX. I made an attempt to process my monthly payment online in XX/XX/2019 but the payment did not process because of an error. I was not aware that the payment did not process until I was attempting to make my next month 's payment in XX/XX/2019. After realizing that my account was delinquent I spoke with a XXXX customer service representative over the phone that informed me that XXXX 's payment did not process. The representative then voluntarily suggested that I have my upcoming payments auto-drafted from my account and get on a 3-month payment plan. The balance for XXXX, XXXX, XXXX, and XXXX was divided over the next 3 months so that I could become current by XX/XX/2019. Assuming that this would be the best solution I took the representative 's advice because the solution that she provided me would prevent me from shedding a lump sum of money all at once. Never did I think the customer service representative 's advice would negatively impact me later. In XX/XX/2019 I decided to review my credit report only to find that the advice that the XXXX representative gave me was not the best advice. My credit report showed 4 months ( XXXX, XXXX, XXXX, XXXX ) of late payments. I did not understand how this was possible because the representative suggested that I divide my payments over 3 months to become current but she never once mentioned that 4 months of late payments would be reported to the credit bureaus. I immediately reviewed my online account and my account was current but when I reviewed the transactions line by line I was charged a late fee for each month that I was on the payment plan ; bearing in mind I was not informed of this prior to signing up for the payment plan. I did not think this was fair at all so I contacted XXXX 's customer service department and explained all of the details of what had taken place to the customer service representative that I had been paired with for the current call. The representative apologized to me for the misunderstanding but told me that there was nothing that she could do about it, unfortunately. The 4 late payments on my credit report are weighing heavy on my credit report and XXXX XXXX. I feel that I was misinformed by XXXX 's customer service representative resulting in a penalty to me as the consumer. As a result of the poor advice given by XXXX 's customer service representative, I feel that XXXX should be willing to take some responsibility for the misleading information that their representative provided. If you suggest something to a customer you should at least communicate all of the terms involved with what you're suggesting to a customer which she did not do. Had I known that the payment plan would put me in this predicament I would not have agreed to it. Since this incident occurred I have not had any more issues and I watch my XXXX account closely to avoid errors and mistakes in the future but I feel that it is only fair that XXXX grants a goodwill adjustment because the late payments were beyond my control.

Company response to consumer: Closed with explanation