Consumer complaint received 2025-03-31 00:00:00
Product: Credit card — Store credit card
Issue: Getting a credit card — Application denied
Company: Bread Financial Holdings, Inc.
State: NY

Complaint narrative:
XX/XX/year>, I was shopping at XXXX XXXX, located in a shopping area near me, when a store employee asked if I would like to apply for a store credit card. I submitted my application but was immediately denied. This discouraging experience prevented me from applying for other store credit cards while shopping that day. Later, I discovered that I may not have been lawfully denied credit. 

I received an adverse action notice dated XX/XX/year>, explaining why my credit request was denied. However, this notice directly violated my right to be informed. The reasoning provided was that my credit score was below their standards, yet : 1. I was never informed of their credit standards before applying.

2. They are legally prohibited from denying credit solely on that basis, pursuant to 12 CFR 1002.9 ( b ) ( 2 ). 

I do not know if other consumers have faced similar issues, but this matter is worth investigating, as it can cause significant harm. In my case, I was forced to put back all the items I intended to purchase, which totaled {$1500.00}. 

Willful Noncompliance To address this violation, I sent a formal correspondence to Comenity Capital Bank, detailing their failure to comply with federal law. While it is not my job to educate them on regulatory compliance, I gave them the benefit of the doubt, assuming this may have been an inadvertent error.

However, their response confirmed willful noncompliance. Their original notice instructed me to write to them if I had any questions, yet my correspondence was not a questionit was a concern regarding their failure to properly inform me why I was denied. Instead of addressing the issue, they reissued the exact same defective notice, dated XX/XX/year>. 

At this point, they have officially violated the law, specifically : 12 CFR 1002.9 ( a ) ( 1 ) Failing to provide a proper adverse action notice within 30 days of my application.

12 CFR 1002.9 ( b ) ( 2 ) Failing to provide specific and lawful reasons for the credit denial.

Requested Action This issue warrants immediate investigationnot only to address their failure to comply within the required timeframe but also to determine why this improper denial reason is being used in the first place. These laws should be enforced, and violators should be held fully accountable. 

Additionally, I request the following documentation in case I need to escalate this issue further : 1. Proof that this was an inadvertent error at the time of my application.

2. Findings from the CFPBs investigation, including any violations identified.

3. Any damages I may be owed and penalties imposed on Comenity Capital Bank.

4. Corrective actions taken or planned to ensure compliance.

5. Certifications, in accordance with the FCRA, verifying the permissible purpose for obtaining my credit report and how it was used.

6. The name, address, and telephone number of the individual responsible for making this decision, in compliance with 12 CFR 1002.9 ( a ) ( 2 ) ( ii ). 

I hope this issue is addressed as soon as possible, as this purchase was intended for personal and family purposes. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation