Consumer complaint received 2024-05-13
Product: Credit card — Store credit card
Issue: Fees or interest — Problem with fees
Company: Bread Financial Holdings, Inc. (NY)

On XX/XX/XXXX, I was approved for the XXXX Credit Card from XXXX XXXX XXXX XXXX XXXX in XXXX XXXX  XXXX, NY. The purpose of this card was to exempt tax payments on purchases from the store. At the time, the card was operated and managed by XXXX XXXX  and autopay was set up to pay the statement balance every month that a balance was due. I would receive both paper statements and electronic statements from the company and was never, for any reason, in arrears. On the XXXX of XXXX, XXXX, ownership and management of the account was transferred to Bread Financial Services / Comenity Bank. I was sent an electronic notice of the change, but it was implied that the service would continue without interruption as it had with XXXX. Starting this date, and through no action of my own, statements, neither digital nor paper were sent any longer, and without my knowledge, settings on my account appeared to have changed during the transition. After the card ownership / management transition occurred, my autopay seems to have shifted to pay only the minimum balance. Not receiving statements, nor notices of any kind from the bank, I perhaps naively assumed that all was in good order, however when, in the process of doing my accounting for the year I noticed a significant interest charge in the amount of {$760.00} posted to my account on XX/XX/XXXX - it was not until this time that I realized the error. I then realized another such interest charge had posted in the amount of {$1100.00} It was at this time that I reached out to the bank to try and understand what had transpired and ascertain an amenable resolution, with either a good faith reduction or more appropriately, a complete refund of the interest charges in light of the transitional electronic error. It was at this time that I was informed that I was electing to defer payment rather than exempt tax, and my autopay was paying only the minimum balance, for which, after a year since the purchase was made, an interest charge was levied on the balance promotional rate. When I explained the situation to numerous representatives, supervisors and departments, I was met with the same company response - that the error was in fact my fault and the company, despite transitioning ownership, bore no responsibility and no remedy was to be offered. Having had a similar situation in the past with a far more reputable and established credit card company, I know that banks often allow for mistakes and work with consumers in good faith. From Bread Financial, there was none to be had. Further research with the CFPB, The XXXX XXXX XXXX and various online discussion groups have lead me to realize that I am by far not the only person to fall victim to this situation and this predatory and uncompromising lender. I was told simply that if I wanted a statement, I should have just gone online, despite bearing no responsibility for the non-delivery of statements post bank transition. By my mind, this practice and further, the banks unwillingness to compromise is criminal and I sincerely appreciate the CFPB 's assistance in finding an amicable resolution to this matter.