Consumer complaint received 2026-04-20 00:00:00
Product: Debt collection — I do not know
Issue: Attempts to collect debt not owed — Debt is not yours
Company: Bread Financial Holdings, Inc.
State: MO

Complaint narrative:
I am submitting this response to formally dispute and reject the conclusions provided by Comenity Bank and Comenity Capital Bank regarding the Express Credit Card account and the XXXX XXXX XXXX Credit Card account. Your response fails to meet the legal requirements under the Fair Credit Reporting Act ( FCRA ) and does not adequately address the substance of my dispute, which is based on identity theft, lack of authorization, and failure to provide proper validation. Your correspondence states that you have reviewed the account and found no violations of law and that you verified the account is being reported correctly. However, these statements are conclusory and unsupported by any actual documentation. A statement of verification without evidence does not meet the standard required under federal law. -- - # # * * XXXX. Your Own Response Fails to Provide Validation * * In both responses, XXXX states that : * The accounts were reviewed * A fraud investigation was completed * No basis was found to support the fraud claim * The accounts were charged off and sold to XXXX XXXX XXXX XXXX, your letters state that : * The XXXX account was charged off on XX/XX/XXXX and sold on XX/XX/XXXX * The XXXX account was charged off on XX/XX/XXXX and sold on XX/XX/XXXX However, nowhere in your response did you provide any of the following : * A signed contract bearing my signature * The original application used to open the accounts * Identity verification records at account origination * Any documentation proving I authorized these accounts Without this documentation, your claim that the accounts were verified is legally insufficient. -- - # # * * 2. Internal Fraud Investigation Is Not Proof * * You state that your internal fraud team completed an investigation and found no basis to support the fraud claim. This is not sufficient for the following reasons : * An internal review is not independent verification * You have not disclosed the method or scope of the investigation * You have not provided any documentation reviewed during that process * You have not addressed the possibility of identity theft beyond your internal systems A conclusion without transparency does not satisfy FCRA requirements. -- - # # * * 3. Sale to XXXX Does Not Remove Your Responsibility * * Your response attempts to shift responsibility by stating that the accounts were sold to XXXX XXXX XXXX and that you are no longer the creditor. This position is incorrect. Even after selling the account, you remain responsible for : * The accuracy of the information you reported * The investigation of disputes related to your reporting * Compliance with FCRA 1681s-2 ( b ) Selling the account does not eliminate your legal obligations. Additionally, the transfer of the account raises further concerns : * You must provide the full chain of assignment * You must provide the purchase agreement or forward flow agreement * You must show that the debt was legally transferred Without this documentation, the validity of the account remains unproven. -- - # # * * 4. Reporting Charge-Off Does Not Prove Ownership * * You state that reporting the account as a charge-off is accurate. This is not relevant to my dispute. My dispute is not about the status of the accountit is about ownership and authorization. Even if an account was charged off, you must still prove : * That I opened the account * That I authorized the account * That the account belongs to me Without this proof, the reporting is inaccurate regardless of its status. -- - # # * * 5. Failure to Provide Method of Verification ( FCRA 611 ( a ) ( 6 ) ) * * You have not provided the required Method of Verification. I am formally requesting : * The method used to verify these accounts * Whether verification was conducted through e-Oscar, manual review, or third-party systems * The date of verification * The identity of the party who verified the accounts If the verification was electronic, you must provide : * Proof of data transmission * Validation source * Chain of custody documentation Without this information, your verification is incomplete and non-compliant. -- - # # * * 6. Identity Theft Has Not Been Properly Addressed * * My dispute clearly raises identity theft concerns. Your response fails to properly address this. Under FCRA 605B, once identity theft is claimed, you are required to : * Conduct a reasonable investigation * Block fraudulent accounts * Remove unverifiable information Instead, you have : * Relied on internal conclusions * Failed to provide supporting documentation * Continued reporting the accounts This is not compliant with federal law. -- - # # * * 7. Burden of Proof Is on the Furnisher * * You are required to prove that the accounts belong to me. I am not required to prove that they do not. Your response attempts to shift this burden by directing me to XXXX. This is improper. You must : * Provide documentation proving ownership * Validate the account independently * Respond to the dispute with evidence Until you do so, the accounts remain unverified. -- - # # * * 8. Continued Reporting Without Validation Violates Federal Law * * If you can not provide : * A signed contract * Proof of authorization * Identity verification records * Proper method of verification Then continued reporting constitutes : * Inaccurate reporting under FCRA 1681e ( b ) * Failure to reinvestigate under 1681i ( a ) * Failure of furnisher duties under 1681s-2 ( b ) -- - # # * * 9. Request for Full Audit Trail * * I am formally requesting : * All internal correspondence related to these accounts * System logs showing verification activity * User IDs and timestamps * Communication with XXXX regarding these accounts This is necessary to determine whether a proper investigation was conducted. -- - # # * * 10. Demand for Immediate Resolution * * Based on the above, I am demanding the following : # # # * * 1. Immediate Deletion of Both Accounts * * * Express Credit Card * Ulta Beauty Rewards Credit Card From : XXXX XXXX XXXX XXXX XXXX XXXX XXXX Any internal or third-party reporting systems -- - # # # * * 2. Removal of All Derogatory Information * * Including : * Charge-offs * Late payments * Collection status * Any negative remarks -- - # # # * * 3. Written Confirmation * * Provide written confirmation that : * The accounts have been deleted * All credit bureaus have been notified * The accounts will not be reinserted -- - # # # * * 4. Full Method of Verification Disclosure * * As required under FCRA 611 ( a ) ( 6 ) -- - # # * * 11. Final Notice * * This is not a requestit is a formal demand for compliance. If this matter is not resolved, I will pursue : * Additional CFPB complaints * FTC escalation * State Attorney General complaint * Legal action for continued non-compliance -- - # # * * 12. Conclusion * * Your response does not resolve my dispute. A statement that the account was verified is not proof. A fraud investigation without documentation is not validation. Selling the account does not remove your responsibility. The only lawful resolution is : * Immediate deletion of the accounts * Removal of all associated derogatory information Until that occurs, this matter remains unresolved.

Company response to consumer: Closed with explanation