Consumer complaint received 2018-02-06
Company: Bread Financial Holdings, Inc.
State: WA
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Problem when making payments
Sub-issue: Problem during payment process

Complaint:
XXXX XXXX issues XXXX XXXX XXXX credit card and many other store cards. Over the past year I have been repeatedly charged late fees even though the payment was made early. I often make multiple payments and always pay ahead. 

From XX/XX/XXXX-XX/XX/XXXX I made several extra payments and paid ahead. In XX/XX/XXXX I was charged a late fee of {$27.00}! The same issue happened in XX/XX/XXXX. I used the secure message center from the payment web page and brought to their attention that my payments have never been late and in fact I had always paid more than the amount due and made two separate payments many months in a row. So in fact I was not only paid on time, but I was paying early. 

They issued me a credit for the XX/XX/XXXX with a generic email reply calling it a " voucher ''. No explanation as to why their system defaults to a late fee even if the early second payment is made separate and after the current months due date is past. Logic would dictate that the amount would go to the next payment due! 

In XX/XX/XXXX it happened again. I made a payment on the XX/XX/XXXX due date XX/XX/XXXX and another payment on XX/XX/XXXX. The {$55.00} payment made on XX/XX/XXXX was double {$27.00} due for XX/XX/XXXX but they did not credit it towards the amount due. Instead they billed me another huge {$27.00} late fee. In addition the bill due date then showed {$37.00} due XX/XX/XXXX ( it doesn't make sense if minimum is always {$27.00} and you didn't credit my {$55.00} to the XX/XX/XXXX payment then how is only {$37.00} due for the late XX/XX/XXXX payment you are recording AND the XX/XX/XXXX payment? ) I did not make that payment in XX/XX/XXXX when I got the email because as their history has proven to me, it would not be credited for XX/XX/XXXX if the payment posted in XX/XX/XXXX ... .and the cycle of late fees is still at play.

I sent a second secure message explaining the error and providing copies of the payments. I received another generic response ( see below ). They clearly did not look at the actual account and the real issue. I have tried several times on different days and different devices to reply or send a new message and the system says there is an error and the message cant be sent. This all seems like a scam built into the system that allows the XXXX XXXX to collect who knows how much in these false fees. This fraudulent practice is a profit maker for them and the very reason we have consumer protection laws. Imagine how much they are making when you look at the number of accounts they hold " Today more than 50 million cardmembers hold an account with one of our banks. '' Not to mention the crazy {$9.00} fee to make a phone payment that they mention in their email below. 

" From : XXXX XXXXSent : Friday, XX/XX/XXXX XXXX XXXX  ( ET ) To : YouSubject : Re :  PaymentsMessage XXXX Thank you for your recent inquiry to our Customer Care Department . 
XXXX XXXX issues your account and responds to all credit related inquiries. 

We see a late fee credit of {$27.00} was applied to your account on XX/XX/XXXX. You are currently not eligible for another late fee waiver. 
You are a valued XXXX XXXX XXXX customer and we want to help you prevent any future late fees on your account. There are many easy to use payment options available to you. You can make payments on your account through Account Center at no cost up to XXXX XXXX EST the day of your due date. In addition, you can call in and make a payment over the phone with a representative for a small expedited fee of {$9.00}. 

We hope this information is helpful. For the security of your account information, we ask if there are any follow up questions you have related to this concern, please click on the reply button. 


Sincerely, XXXX XXXX XXXX Customer Care Team ''

Company response to consumer: Closed with explanation