Consumer complaint received 2023-01-20
Product: Credit card or prepaid card — General-purpose credit card or charge card
Issue: Fees or interest — Problem with fees
Company: Bread Financial Holdings, Inc. (GA)

On XX/XX/2022, I went to the Ann Taylor store at the XXXX XXXX  XXXX XXXX. Upon checkout, I mentioned to the clerk that I had a XXXX  card but didn't have it with me, regretfully. She told me that I could look up my XXXX  card and charge it by entering my social security number. I went to the keypad screen and followed the instructions but my card was not found after entering my social security number. She told me that sometimes this happens, that I have to finish the next few screens because the system had to do some type of lookup. I proceeded to finish the next few screens, but it looked to me like it was opening a new credit card, so I asked the clerk, are you sure this is to look up my card because it looks like it is opening a new card? She assured me two times that it was not to open a new credit card. In the end, it seems that the charge went through because I did not provide payment. 

Shortly after, to my surprise, I get a new credit card in the mail followed by a call saying my payment was late. On XX/XX/2022, I called the credit card company and expressed my desire to pay off the credit card in full and close the account. I told them that I felt tricked into opening it and it was no secret that my intention was to fully pay off and close the account. They assured me it was closed, and I made payment in full for {$430.00} at the same time. I also called the Ann Taylor store in XXXX and told the management. I didn't want the lady to get in trouble ( and still don't ), but suggested they do better training. The store was apologetic and I considered the issue closed. 

However, today, XX/XX/XXXX, I received a mailing which I almost threw away because I know the credit card is closed. Luckily, I opened it. Even though my card is closed, they sent me a bill for {$1.00} saying that I owe them some type of fee. For {$1.00}! When I called and closed the account in XXXX, nothing was mentioned to me about residual payments or interest or fees due on the account. It was abundantly clear I wanted to close it, and THEY REPRESENTED TO ME THAT IT WAS CLOSED. 

This is why I am complaining to you now. Had I not opened this mailing, it says I would have owed an additional {$41.00} late fee. It was my complete and total understanding, as well as their representation, that the account was closed. I immediately called the credit card company and to their credit, they took off the {$1.00} charge and confirmed the account was closed ( again ). 

However, I wanted to write this complaint for your records because it feels slightly dishonest and a potential trap for unwary consumers. As mentioned, I closed this account and paid it in full, and that was represented to me. I nearly threw away this mailing, which turns out to be a bill for {$1.00}. Had I not opened it, the fees would have just piled up. The whole process has seemed a bit dishonest to me. Luckily, I have the financial means to pay even the {$41.00} late fee. But not everyone does. This does not feel like an honest business practice, to trick someone into opening a card, representing that it's closed, then trick mailing them a {$1.00} invoice, then earning {$41.00} more when they understandably fail to open it.