Consumer complaint received 2024-09-13
Product: Credit card — Store credit card
Issue: Problem with a purchase shown on your statement — Card was charged for something you did not purchase with the card
Company: Bread Financial Holdings, Inc. (TX)

XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  Comenity Capital Bank XXXX XXXX XXXX XXXX XXXX XXXX Re : URGENT - Fraudulent Activity and Dispute of All Charges on Account Ending XXXX To Whom It May Concern : I am writing to formally dispute ALL charges on my XXXX XXXX XXXX XXXX  credit card account ending in XXXX. I declare under penalty of perjury that I did not make, authorize, or have knowledge of any transactions made on this account since XX/XX/XXXX. 

Key points regarding this dispute : XXXX. Fraudulent Transactions : I dispute the following specific transactions : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Unauthorized Interest Charges : I dispute the {$8.00} interest charge applied to these fraudulent purchases. 

XXXX. Incorrect Balance : The new balance of {$380.00} is based entirely on fraudulent charges and unauthorized interest. 

XXXX. Previous Payment : I note a payment of {$37.00} on XX/XX/XXXX, which was made in good faith before I became aware of the full extent of the fraudulent activity. 

XXXX Credit Limit and Available Credit : The statement does not show my credit limit or available credit, which is concerning given the fraudulent nature of these charges. 

XXXX. Failure to Investigate : Despite my multiple attempts to dispute these charges ( on XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX ), your agents claimed they could not see the charges I was disputing. This failure to properly investigate violates your obligations under the Fair Credit Reporting Act. 

XXXX. Ongoing Issue : This fraudulent activity has been ongoing for over 16 months without proper resolution, causing significant distress and potential damage to my credit score.

8. Police Reports : I have filed multiple police reports regarding this issue. 

I DEMAND that you immediately take the following actions : XXXX. Remove ALL charges from my account, dating back to XX/XX/XXXX when the fraudulent activity began, including the specific transactions listed above. 
XXXX. Refund the {$37.00} payment made on XX/XX/XXXX, as it was applied to fraudulent charges. 
XXXX. Remove all interest charges, including the {$8.00} charged on this statement. 
XXXX. Freeze my account effective XX/XX/XXXX and mark it as disputed. 
XXXX. Conduct a thorough, manual investigation into this matter. Do NOT utilize any third-party services for this investigation. 
XXXX. Provide me with detailed results of your investigation in writing, including : a. How my identity was verified for the disputed purchases b. Camera footage from the XXXX XXXX XXXX XXXX XXXX location for the transactions on XX/XX/XXXX XXXX. Remove all related information from my credit reports with all credit bureaus. 
XXXX. Provide me with documentation showing you have complied with these demands. 
XXXX. Explain why your agents were unable to see the disputed charges during my previous calls. 
XXXX. Restore my account to good standing, reflecting a XXXX balance. 
XXXX. Update all credit bureaus to reflect the correct findings after your investigation, ensuring my credit report accurately represents this resolution. 
XXXX. Provide compensation for all damages incurred, including fees, interest charges, and impact on my credit score. 
XXXX. Offer complimentary credit monitoring services for a period of at least two years.

14. Issue a written apology for the prolonged failure to address this fraudulent activity.

Be advised that your actions and inactions may be in violation of the following statutes and regulations : 1. Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681 et seq.

2. Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692 et seq.

3. Electronic Fund Transfer Act ( EFTA ), 15 U.S.C. 1693 et seq.

4. Truth in Lending Act ( TILA ), 15 U.S.C. 1601 et seq.

5. Identity Theft and Assumption Deterrence Act, 18 U.S.C. 1028 6. Gramm-Leach-Bliley Act ( GLBA ), 15 U.S.C. 6801 et seq.

7. Texas Identity Theft Enforcement and Protection Act, Texas Business and Commerce Code 521.001 et seq.

8. Texas Deceptive Trade Practices-Consumer Protection Act, Texas Business and Commerce Code 17.41 et seq.

Furthermore, I draw your attention to relevant case law that supports my position : - XXXX XXXX XXXX XXXX XXXX  ( XXXX XXXX XXXX ) establishes your liability for failing to conduct a reasonable investigation under the FCRA. 
XXXX XXXX XXXX XXXXXXXX ( XXXX XXXX XXXX ) highlights the importance of implementing reasonable procedures to verify the identity of credit applicants. 
- Seamans v. XXXX University ( XXXX XXXX XXXX ) clarifies your obligation to conduct a thorough investigation of my dispute. 
XXXX XXXXXXXX XXXX XXXXXXXX XXXX XXXX XXXX ( XXXX XXXX XXXX ) supports my demand for a manual, thorough investigation. 
XXXX XXXX XXXX XXXX XXXX, XXXX ( XXXX XXXX XXXX ) emphasizes the potential for damages, including emotional distress, for FCRA violations. 
- XXXX XXXX XXXX XXXX  XXXX XXXX XXXX XXXX VA ( XXXX XXXX XXXX ) indicates that reporting a disputed debt without noting the dispute violates the FCRA XXXX 
- XXXX v. XXXX XXXX XXXX XXXX  ( XXXX XXXX XXXX ) supports my right to prompt provisional crediting under the XXXX XXXX 

These cases clearly establish your legal obligations and my rights in this matter. I expect you to fully comply with these legal standards in resolving my dispute. 

I have filed an official Identity Theft Report with the Federal Trade Commission ( attached ) and have initiated disputes with all major credit bureaus. 

I expect a comprehensive response to this dispute within 30 days, as mandated by federal law. Failure to comply with this request will result in my filing complaints with the Consumer Financial Protection Bureau, the Federal Trade Commission, and the Texas Attorney General 's office. I reserve the right to pursue all legal remedies available to me under state and federal law. 

This letter serves as my formal notice to cease and desist all collection activities related to this account until this matter is resolved. 

Sincerely, XXXX XXXX XXXX XXXX : Texas Attorney General XXXX Office Consumer Financial Protection Bureau Federal Trade Commission Enclosures : XXXX. Copy of fraudulent statement dated XX/XX/XXXX XXXX. Chronological timeline of events XXXX. Copies of police reports XXXX. Phone records of disputes XXXX Credit reports showing fraudulent charges XXXX. FTC Identity Theft Report UPDATED CREDIT CARD DISPUTE CALL LOG Account : XXXX XXXX XXXX XXXX Credit Card ending in XXXX Account Holder : XXXX XXXX XXXX XXXX. XX/XX/XXXX - Initial Dispute Call Time : XXXX XXXX  CT Duration : XXXX minutes Representative : XXXX ( ID # XXXX ) Summary : Reported fraudulent charges from XX/XX/XXXX. Representative claimed unable to see disputed charges. No resolution provided. 
Identity Verification Query : Specifically asked how my identity was verified for the purchases. Representative unable to provide this information, claiming it was not accessible in their system. 

XXXX. XX/XX/XXXX - Follow-up Dispute Call Time : XXXX XXXX  CT Duration : XXXX hour XXXX minutes Representative : XXXX ( ID # XXXX ) Summary : Reiterated dispute of charges. Representative again unable to locate disputed transactions. Escalated to supervisor, but call disconnected while on hold. 
Identity Verification Query : Pressed for details on identification process used for transactions. Representative claimed this information was not available to customer service and would require investigation by the fraud department. 

XXXX. XX/XX/XXXX - Escalation Attempt Time : XXXX XXXX  CT Duration : XXXX minutes Representative : XXXX ( ID # XXXX ) Summary : Requested to speak with fraud department. Transferred multiple times. Each representative claimed no record of previous disputes. No resolution achieved. 
XXXX XXXX XXXX : Demanded to know the specific identification process used for the disputed transactions. Was told this information could only be provided by the fraud department, but transfer to fraud department was unsuccessful. 

XXXX. XX/XX/XXXX - Multiple Failed Attempts Call XXXX : Time : XXXX XXXX CT Duration : XXXX minutes Result : Disconnected while on hold for fraud department Identity Verification Query : Attempted to ask about identification process, but call dropped before reaching a representative. 

Call XXXX : Time : XXXX XXXX  CT Duration : XXXX minutes Representative : XXXX ( ID # XXXX ) Result : Transfer attempt failed, call dropped Identity Verification Query : Asked representative about identity verification for disputed purchases. Was told this information requires special access and attempted transfer to appropriate department before call dropped. 

Call XXXX : Time : XXXX XXXX  CT Duration : XXXX minutes Representative : XXXX ( ID # XXXX ) Result : System reportedly " down for maintenance '' mid-call, disconnected Identity Verification Query : Explained importance of understanding identity verification process. Representative acknowledged the request but claimed system issues prevented access to this information. 

Call XXXX : Time : XXXX XXXX  CT Duration : XXXX minutes Result : Automated system malfunction, call ended abruptly Identity Verification Query : Unable to reach human representative to discuss identity verification. 

Call XXXX : Time : XXXX XXXX CT Duration : XXXX minutes Representative : XXXX ( ID # XXXX ) Result : Transfer to supervisor unsuccessful, call dropped Identity Verification Query : Stressed the critical nature of understanding how purchases were verified. Representative attempted to transfer to a supervisor for this information, but call disconnected. 

Call XXXX : Time : XXXX XXXX  CT Duration : XXXX minutes Representative : XXXX ( ID # XXXX ) Summary : Finally reached fraud department. Explained entire situation again. Representative claimed to " escalate '' the case but provided no concrete resolution. Promised a call back within XXXX hours, which was never received. 
XXXX XXXX XXXX : Pressed for details on how my identity was verified for the disputed purchases. Representative claimed this information was part of the " escalated investigation '' but could not provide any specific details about the verification process used at the time of purchase. 

Total Time Spent on Calls : XXXX hours and XXXX minutes Recurring Issue : Throughout all calls, I consistently requested information on how my identity was verified for the disputed purchases. Despite multiple inquiries, no representative was able to provide this crucial information. This persistent failure to address a fundamental aspect of the fraudulent activity raises serious concerns about the bank 's security protocols and their handling of this dispute. 

Additional Notes : - During each call, I had to re-explain the entire situation, as there seemed to be no record of my previous disputes. 
- Representatives consistently claimed they could not see the fraudulent charges I was disputing. 
- Multiple promises of follow-ups and resolutions were made, but never fulfilled. 
- The experience on XX/XX/XXXX, was particularly frustrating, with six separate attempts resulting in disconnections, transfers to incorrect departments, and ultimately no resolution. 
- The cumulative effect of these failed communication attempts has significantly contributed to the stress and financial hardship detailed in my dispute letter. 
- Not a single representative was able to explain the identity verification process used for the disputed transactions, which is a critical aspect of this fraud case. 

I certify that this log is an accurate representation of my attempts to resolve this dispute with Comenity Capital Bank. 

Signed : ______________________________ XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXX/XX/XXXX : - Account had a legitimate balance of {$30.00} - Reason for this balance not specified, but acknowledged as valid XXXX. XX/XX/XXXX : - Legitimate late fee of {$30.00} charged to the account - Balance increased to {$60.00} - This late fee is acknowledged as valid XXXX. XX/XX/XXXX : - Statement closing date and payment due date - Minimum interest charge of {$2.00} applied - New statement balance : {$62.00} - This is the last legitimate balance before fraudulent activity began XXXX. XX/XX/XXXX : - Fraudulent transactions occurred : XXXX XXXX XXXX XXXX XXXX TX - {$160.00} ( XXXX XXXX React XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX TX - {$180.00} ( XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX XXXX ) - Total fraudulent charges : {$340.00} - Good faith payment of {$37.00} made before awareness of fraudulent activity - Actual balance after payment should be {$25.00} ( {$62.00} - {$37.00} ) XXXX. XX/XX/XXXX : - First attempt to dispute charges via phone call - Request for information on identity verification process denied - Representative claimed unable to see disputed charges - No resolution provided XXXX. XX/XX/XXXX : - New statement issued showing fraudulent charges and additional interest - New balance incorrectly shown as {$380.00} - This balance includes legitimate charges ( {$25.00} ) and fraudulent charges ( {$340.00} ), plus additional interest XXXX. XX/XX/XXXX : - Second attempt to dispute charges via phone call- Again, no information provided on identity verification process - Representative unable to locate disputed transactions - Call escalated to supervisor but disconnected while on hold XXXX. XX/XX/XXXX : - Third attempt to dispute charges via phone call - Continued failure to provide information on identity verification - Multiple transfers between departments - No resolution achieved XXXX. XX/XX/XXXX : - Statement issued showing balance has grown to {$770.00} - This increase due to accumulated unauthorized fees and interest on fraudulent charges - Credit limit shown as {$400.00}, but balance allowed to exceed this limit- {$41.00} late fee charged on XX/XX/XXXX ( disputed ) - {$19.00} interest charge for this period ( disputed ) XXXX. XX/XX/XXXX : - Multiple attempts ( XXXX calls ) to resolve the dispute - Call XXXX ( XXXX XXXX  CT ) : Disconnected while on hold for fraud department - Call XXXX ( XXXX XXXX CT ) : Transfer attempt failed, call dropped - Call XXXX ( XXXX XXXX  CT ) : System reportedly " down for maintenance '', disconnected - Call XXXX ( XXXX XXXX  CT ) : Automated system malfunction, call ended abruptly - Call XXXX ( XXXX XXXX  CT ) : Transfer to supervisor unsuccessful, call dropped - Call XXXX ( XXXX XXXX  CT ) : - Finally reached fraud department - Explained entire situation again - Representative claimed to " escalate '' the case but provided no concrete resolution - Promised a call back within XXXX hours, which was never received - Continued failure to address identity verification concerns- Decision to send formal written dispute FAIR ACCOUNT RESTORATION POINT : Based on this comprehensive timeline, the account should be fairly restored to its status as of XX/XX/XXXX : - Balance : {$25.00} ( original {$62.00} balance minus {$37.00} good faith payment ) - No fraudulent transactions - Credit standing : Should reflect timely resolution of the dispute and removal of all negative reports related to fraudulent activity DISPUTED ITEMS : XXXX. All charges, fees, and interest related to or stemming from the fraudulent transactions on XX/XX/XXXX XXXX. Any late fees or interest charged after XX/XX/XXXX XXXX. All negative credit reporting related to this account after XX/XX/XXXX XXXX. The increase of the account balance beyond the stated credit limit of {$400.00} COMPENSATION CONSIDERATIONS : While not seeking unjust enrichment, fair compensation should be considered for : 1. Time and resources spent attempting to resolve this issue over 16 months 2. Emotional distress caused by prolonged dispute and threatening collections language 3. Negative impact on credit score and financial opportunities ( e.g., increased car financing costs, housing difficulties ) 4. Failure to provide proper customer service, including multiple dropped calls and transfers 5. Failure to properly investigate the fraudulent charges and identity verification process XXXX. Potential violations of consumer protection laws and regulations This comprehensive timeline demonstrates : 1. Acknowledgment of legitimate charges prior to the fraud 2. Clear delineation of when fraudulent activity began 3. Prompt and persistent efforts to dispute the fraudulent charges 4. Multiple failures by the bank to properly investigate and resolve the issue XXXX. Compounding effect of fees and interest on fraudulent charges XXXX. Significant personal and financial impact of prolonged dispute XXXX. A fair and reasonable point to which the account should be restored