Consumer complaint received 2022-10-13
Company: Bread Financial Holdings, Inc.
State: OK
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Fees or interest
Sub-issue: Problem with fees

Complaint:
My complaint is filed against Comenity Bank, which is a part of Bread Financial, for failing to complete requests over the phone and reporting false late payments. 

In XXXX of XXXX, I got approved for a XXXX Credit Card. Throughout the next 6 months I used it and paid it off every month. In XXXX of XXXX, I had a balance of {$160.00} that I paid off over the phone with a representative. In XXXX of XXXX, I received a notification from XXXX XXXX that my credit score has dropped due to a late or missed payment which I was sure to be a mistake. I logged on to find it was my XXXX XXXX. I navigated to the Comenity Bank website and attempted to view my statements, but that part of the website wasnt ( and still isnt ) working. I was able to scroll back in my junk emails from them and find a notification displaying my statement from XX/XX/XXXX for {$2.00}. Up until this point I had never familiarized myself with residual interest, which is what a phone representative informed me this {$2.00} charge was. Since that was back in XXXX and it is now XXXX, that {$2.00} had accrued almost {$40.00} in late fees. I explained everything to the representative, and she told me she couldnt do anything because their systems were down and to call back Monday to get the late fees waived. On Monday, I called back and they were able to waive {$18.00} in late fees if I paid the remaining {$21.00}. I confirmed it would be paid off and asked the rep to close the account. She sounded upset and agreed. 

On XX/XX/XXXX, I received a letter in the mail disclosing that my account had been closed but there was an {$18.00} balance remaining, and to call and pay it. I called XX/XX/XXXX and the gentleman informed me that there is a {$77.00} balance on the account due to late fees that accrued from an unpaid balance. I asked him about my most recent payment, and he said it did not go through. At this point in time, I am unable to access any statements whatsoever because their website had been down for ( seemingly ) months. The representative told me he could waive fees to reduce the remaining amount to on my account to {$20.00}. Wrongly assuming this would be the end of my association with this company, I paid the {$20.00} and confirmed at least twice with him that the balance was completely taken care of. 

On XX/XX/XXXX I received a text from Comenity Bank notifying me of my XXXX balance. I called yet again and spoke to a woman who seemed to be empathetic toward my situation. After she put me on hold to take care of the balance, she came back on the line to tell me that she was sorry and I wouldnt have to worry about it again ; the balance was removed and my account is closed. 

On XX/XX/XXXX, due to the amount of distrust I now have with this bank, I called again and went through the automated system to reveal a balance of {$77.00} I am finally able to access their website and have attached screenshots of the payment history as well as my balance. There also seems to be a grayed out balance of {$97.00}, but I am not sure why its unavailable and {$20.00} higher than my current balance. 

I filed disputes with all three credit bureaus, which only resulted in the closure of the account, not the rectification of the balance or late or missing payment reports. 

In my research, I have found through consumer complaints to the XXXX XXXX XXXX as well as internet forums that many others have struggled with Comenity Bank in a similar manner. In XX/XX/XXXX, Comenity Bank paid {$8.00} XXXX to settle a Telephone Consumer Protection Act ( TCPA ) class action. In XX/XX/XXXX, the XXXX XXXX XXXX XXXX announced that it had ordered Comenity to pay nearly {$64.00} XXXX in civil money penalties and restitution for alleged deceptive advertising and marketing of credit card add-ons, in violation of Section 5 of the Federal Trade Commission Act. As of XXXX, there are two other pending lawsuits I can find with claims regarding the inoperability of their website and phone system. I am reaching out because I am unable to get through to this company. It is clear they have a history of dishonesty.

Company response to consumer: Closed with monetary relief