Consumer complaint received 2023-12-08
Company: Bread Financial Holdings, Inc.
State: WA
Product: Credit card
Sub-product: Store credit card
Issue: Problem when making payments
Sub-issue: Problem during payment process

Complaint:
In XXXX, XXXX I opened a XXXXXXXX XXXX XXXX through Comenity Capital Bank. I made XXXX purchases using their credit card in the amounts of {$540.00} & {$66.00} for a total of {$610.00}. 
My first statement indicated a balance of {$540.00} with payment due XX/XX/XXXX. 
On XX/XX/XXXX, I ordered payment in full via a check from my XXXX XXXX bank to Comenity Capital Bank in the amount of {$540.00}. When my payment had not been credited to my Comenity Capital Bank account by XX/XX/XXXX, I called Comenity Capital Banks customer service & was told that if my payment didnt reach them by the due date, I would be charged late fees as well as interest. I told the representative that Id already sent in payment to which she replied, Were not responsible for the US Mail. She suggested I call back or go directly to the store to try and resolve the matter. I was left feeling very frustrated by her attitude as well as concerned over the prospect of having to debate late fees and interest with a new credit card company, especially since I pay my accounts in full each month. 
I decided not to do business with a credit card company who offers no alternatives when payments go missing, so I followed up with Comenity Capital Banks customer service via email and attached my Proof of Payment from XXXX XXXX. Comenity Capital Bank responded that my request had been forwarded to the correct department. 
On XX/XX/XXXX, I logged into my XXXX XXXX account and discovered that my {$540.00} payment to Comenity Capital Bank cleared my bank sometime before XX/XX/XXXX. I logged into Comenity Capital Banks website and discovered that although they had cashed my check, they failed to apply any funds to my account. I then s

ent two separate emails to Comenity Capital Bank, attaching a copy of my proof of payment and check clearance. I also informed Comenity Capital Bank that I ordered final payment of my account in the amount of {$66.00}.

Comenity Capital Bank responded that until the best resolution for your concern, we wont collect the amount in question or report you as delinquent to the credit reporting agencies. They continued to deny receipt of my payment. To document this, Comenity Capital Bank sent me a letter dated XX/XX/XXXX in which they indicate my balance owing was still {$610.00}. They also indicate that I will continue to receive monthly billing statements until any balance is paid in full. 
On XX/XX/XXXX, I received another email from Comenity Capital Bank in which they informed me that they had closed my account, and that they let the credit reporting agencies know that my account was closed at my request. While it was true, I did ask Comenity Capital Bank to close my account, they failed to inform the credit reporting agencies that the reason I closed an account a month after opening it was due to their fraudulent handling of my account, most notably, their refusal to apply payments received to my account balance.

Comenity Capital Banks reporting to the credit agencies without explanation will most likely negatively affect my credit rating. 
On XX/XX/XXXX, I received another letter from Comenity Capital Bank in which they indicated they needed 90 days to complete their investigation and that during that time I will receive a temporary credit. They further stated that if their investigation proves no error occurred, the disputed transaction may be subject to applicable interest per your Credit Card Agreement.

I attach all related documents supporting the above. I also attached a XXXX XXXX statement showing both payments made to Comenity Capital Bank, the dates they were made, that the check sent on XX/XX/XXXX check cleared my account, and the check sent on XX/XX/XXXX is still outstanding. A screenshot of my Comenity Capital Bank account shows a XX/XX/XXXX statement balance of {$540.00} indicating they placed a temporary credit on my account not a payment. 
I then received a letter from Comenity Capital Bank dated XX/XX/XXXX indicating the following, You asked that we transfer your payment from one account to another. That is 100 % untrue. How would I have any knowledge of Comenity Capital Bank putting my payment into someone elses account? Comenity Capital Bank continues, As requested, we transferred the payment of {$540.00} from the account ending in XXXX ( unknown account ) to the account ending in XXXX ( my account ). In other words, Comenity Capital Bank applied the payment meant for my account to some unknown account and then attempted to hide their incompetent and unethical banking practices by accusing and blaming me! 
Please take note of the second screenshot of my account taken on XX/XX/XXXX Comenity Capital Bank still has not applied the second check sent to them on XX/XX/XXXX. Their website shows the statement balance for my account as {$66.00} with payment due by XX/XX/XXXX. I would assume they received my payment yet have no idea where to apply the payment. Maybe they should check their customers account ending in XXXX. 
Is this financial fra

ud? Comenity Capital Banks continued mishandling of my payments, their continued denial of wrongdoing, their lies, accusations, and misreporting me to the credit bureaus must be investigated. They need to apply my {$66.00} payment to my account so I can close this file and be done with them.

Am I the only customer Comenity Capital Bank has treated in such a manner? I would assume most customers would simply pay the late fees and interest without challenging their business practices. But Im not one of those customers. I may be XXXX XXXX XXXX, but I can still recognize financial incompetence and deceit when I see it.

Company response to consumer: Closed with monetary relief