Consumer complaint received 2023-10-02
Product: Credit card — Store credit card
Issue: Improper use of your report — Reporting company used your report improperly
Company: Bread Financial Holdings, Inc. (IL)

I am writing to submit a formal complaint against Comenity Bank, specifically in connection with its association with XXXX XXXX, for ongoing violations of the Fair Credit Reporting Act ( FCRA ). This complaint is based on the recent findings in my consumer credit reports from the credit reporting agencies XXXX, XXXX, and XXXX, which indicate that Comenity Bank 's information is being reported in a manner that blatantly contravenes FCRA regulations. 

The specific account in question is as follows : XXXX. XXXX XXXX Account # XXXX Despite having raised concerns in the past and having emphasized the importance of adhering to consumer rights and FCRA regulations, it is disheartening to note that Comenity Bank continues to report information in a manner that raises significant doubts about its compliance with the FCRA. The crux of my concerns lies in the classification of my line of credit with your institution as " utilization '' and the categorization of my payment history/status with your company as transactions on my consumer reports. 

I firmly believe, based on the relevant legal provisions, that Comenity Bank is unlawfully reporting this information on my consumer reports. I draw your attention to 15 U.S. Code 1681a ( 2 ) ( A ) ( i ), which explicitly states : " 2 ) Exclusions.Except as provided in paragraph ( 3 ), the term 'consumer report ' does not include ( A ) subject to section 1681s3 of this title, any ( i ) report containing information solely as to transactions or experiences between the consumer and the person making the report. '' The law clearly and unequivocally states that information related to transactions or experiences between the consumer ( myself ) and the person ( Comenity Bank ) making the report should not be included on consumer credit reports. Utilization represents an experience with the line of credit extended between the consumer ( myself ) and your company, and payment history or status inherently involves transactions between the consumer ( myself ) and the person ( Comenity Bank ) making the report. Therefore, both of these aspects should not be reported on my consumer credit reports. 

By reporting this information on all of my consumer reports, Comenity Bank appears to be in flagrant violation of the FCRA ( 15 U.S. Code 1681a ( 2 ) ( A ) ( i ) ). This not only jeopardizes the accuracy and fairness of my credit reports but also undermines the consumer rights and protections guaranteed under the FCRA. 

I hereby request that the Consumer Financial Protection Bureau conducts a thorough and comprehensive investigation into this matter and takes all necessary actions against Comenity Bank for its repeated and ongoing violations of the FCRA. My intention is to ensure that the FCRA regulations are upheld and that consumers like myself are afforded the protections and rights they are entitled to. 

Enclosed with this complaint, you will find copies of my consumer credit reports, highlighting the problematic information. 

Thank you for your prompt attention to this issue. I trust that your intervention will help rectify this situation and uphold the principles of fair and accurate credit reporting as mandated by the FCRA.