Consumer complaint received 2017-10-16
Company: Bread Financial Holdings, Inc.
State: MD
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Problem with fees

Complaint:
In XXXX, I ( the Consumer ) was offered and accepted a PayPal Credit Line with a Deferred Payment or XXXX XXXX XXXX  PayPal Credit Card account. According to the PayPal Credit Line Agreement the following was stated in the Terms of Agreement : " No Payments + No Interest if paid in full Purchases '' are Deferred Interest Purchases on which no payments will be due during a six-month ( or longer as offered by the Merchant ) deferred interest period. 

" Deferred Interest Purchases '' are Promotional Purchases on which no interest will be charged if they are paid in full within the deferred interest period. Interest will be charged from the posting date if the Purchase balance is not paid in full within the deferred interest period. 

Interest - If you pay the balance in full by the XXXX XXXX, we will not charge any interest for that Purchase. We will calculate the interest for each Billing Cycle prior to the Expiration Date and disclose it on the billing statement as the Accrued Deferred Interest. If you do not pay the balance on a Deferred Interest Purchase before the Expiration Date, we may charge your Account, in the Billing Cycle in which the Expiration Date occurs, interest on that Promotional Purchase from the transaction posting date. 

Standard Purchases - New Purchases made at the XXXX XXXX, without any promotional offer and new XXXX XXXX 

According to PayPals own Terms of Agreement, " XXXXXXXX XXXX  XXXX, XXXX, '' located in XXXX, Maryland, developed PayPal Credit and provided services for the Lender, such as processing transactions, keeping records, sending billing statements, and providing customer service. XXXX XXXX XXXX, XXXX may also receive payments and perform collection activities on behalf of the Lender. 


In XXXX Credits Rebuttal Responses dated XXXX/XXXX/XXXX and XXXX/XXXX/XXXX they assert, PayPal Credit reviewed your Account and determined we do not have record of any overpayments on your Account. In addition, PayPal Credit confirmed all your purchases, credits, and payments were allocated correctly in accordance with the Terms and Conditions and in compliance with all applicable laws and regulations. Further, PayPal Credit has no record of receiving any purchase, credit, or payment allocation requests for your Account. 

The following information, provided by XXXX XXXX XXXX XXXX and XXXX, XXXX also formerly known as XXXX XXXX XXXX XXXXXXXX zipped files of account Statements requested in BBB Complaint # XXXX or Account # XXXX XXXX XXXX XXXX, provides evidence that XXXX XXXX XXXX XXXX XXXX XXXX is non-compliant with the Terms and Conditions of the account ; non-compliant of applicable laws and regulations, and was deceptive in its practices of servicing Account # XXXX XXXX XXXX XXXX. The following are only examples of a few of the egregious deceptive and abusive practices by PayPal Credit, and does not represent the Account in its entirety : - In PayPal Credits provided Billing Statement - Page 41, Statement Closing Date XXXX/XXXX/XXXX, PayPal Credit changed the Deferred Interest Balance of {$460.00} into a Standard Payment scheme and deleted the Deferred Interest Payment of {$350.00} ( Deferred Date : XXXX/XXXX/XXXX ), and Deferred Interest Payment of {$100.00} ( Deferred Date : XXXX/XXXX/XXXX ). 

- In XXXXayPal Credits provided Billing Statement - Page 47,  Statement Closing Date XXXX/XXXX/XXXX, PayPal Credit charged a Standard Interest Fee of {$44.00} and increased the Standard payment to {$420.00}. *There were no Standard purchases made on the account. All transactions were made through the Deferred Interest Payment Plan from the PayPal Credit Line. ( See Attached PayPal submitted Statements andPayPal  Online Credit Statement of Payments, Credits, and Purchases ) - In PayPal Credits provided Billing Statement - Page 55,  Statement Closing Date XXXX/XXXX/XXXX, PayPal Credit failed to apply appropriate credit for a Merchant Refund of {$150.00} dated XXXX/XXXX/XXXX, charged a late fee of {$35.00}, and failed to remove the {$150.00} from the Ending Balance and the Deferred Interest Payment Due. PayPal claimed the New Balance was {$330.00}. *There were no Standard purchases made on the account. All transactions were made through the Deferred Interest Payment Plan from the PayPal Credit Line. ( See Attached PayPal submitted Statements andPayPal Online Credit Statement of Payments, Credits, and Purchases ). 

- In PayPal Credits provided Billing Statement - Page 61,  Statement Closing Date XXXX/XXXX/XXXX, PayPal Credit failed to apply appropriate credit for Merchant Refunds totaling {$350.00}, did not account for the Merchant Refunds in the PayPal Credit Statement for Closing Date XXXX/XXXX/XXXX, and failed to remove the same Refund of {$350.00} from the Ending Balance and the Deferred Interest Payment Due. PayPal credit claimed the New Balance was {$540.00}. *There were no Standard purchases made on the account. All transactions were made through the Deferred Interest Payment Plan from the PayPal Credit Line. ( See Attached PayPal submitted Statements and PayPal Online Credit Statement of Payments, Credits, and Purchases ) : ( a ). XXXX/XXXX/XXXX - {$170.00} ( b ). XXXX/XXXX/XXXX {$130.00} ( c ). XXXX/XXXX/XXXX {$42.00}

Company response to consumer: Closed with explanation