Consumer complaint received 2025-11-23 00:00:00
Product: Credit card — Store credit card
Issue: Fees or interest — Problem with fees
Company: Bread Financial Holdings, Inc.
State: NY

Complaint narrative:
On XX/XX/XXXX, Dell Financial Services ( DFS ) notified me that my credit account would be transferred to Comenity Bank. I did not recall this notice, and the account remained dormant until XX/XX/XXXX, when Dell advised that the account would be closed if unused. 

To keep the account active, I made a purchase on XX/XX/XXXX. The item was delivered, and on XX/XX/XXXX, I submitted a check for the full balance of {$53.00} through my banks online bill pay system. The check was cashed shortly thereafter, around XX/XX/XXXX. I thought all was fine with the account. Then I began receiving collection calls from Comenity Bank and was assessed late fees. Comenity claimed they never received the payment. I let them know that I had made a payment - paid the entire amount off. I sent Comenity a copy of the check from the bank showing payment had been made. 

Upon further review, it was discovered that the account number had changed ( in XXXX ) My original account ended in XXXX, but my banks bill pay system still had the old account number and payment address on file. As a result, XXXX cashed the check even though the account had been transferred to Comenity. What is particularly concerning is that, despite the outdated account number and address, XXXX still processed the payment. Then the struggle to find contact numbers for XXXX as all phone number kept transferring me to Comenity. 

This error created significant confusion. Each time I attempted to contact XXXX, the phone numbers redirected me to Comenity, who insisted I had to resolve the matter with XXXX. It was not until XX/XX/XXXX that I finally reached a XXXX representative and requested a refund of the misapplied payment. In the meantime, I wrote to both XXXX and Comenity, provided copies of the cashed check, and explained the situation. Nevertheless, Comenity continued to add late fees and interest. 

By XX/XX/XXXX, the original {$53.00} balance had grown to {$150.00} due to fees. I ultimately repaid the balance of {$53.00} again, meaning I paid {$100.00} total for a {$53.00} purchase. XXXX has not refunded the original payment, and Comenity has reported negative credit activity, damaging my credit history. Comenity said that if I made the 2nd payment of {$53.00}, they would remove the late fees which they did not. 

XXXX seems to be under the impression that they were still in the " transition '' period after 2 years. 

Key Issues The check to XXXX was improperly processed. 
My account was transferred to Comenity Bank on XX/XX/XXXX, and the original account at Dell Financial Services was closed. 
This check should not have been honored by Dell Financial Services because the account was no longer active. 
Comenity failed to recognize the payment and continued to assess late fees. 
Both companies redirected responsibility, delaying resolution. 
I paid twice for the same purchase, totaling {$100.00}. 
My credit report has been negatively impacted. 
Comenity still wants an additional {$100.00}

Company response to consumer: Closed with monetary relief