Consumer complaint received 2026-03-24 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:
This was the first letter that I sent to them : To the Underwriting Department : I am writing to formally dispute the late fees and interest charges applied to my XXXX XXXX account. I am also writing to document my closure of this account due to what I categorize as predatory credit practices. The Facts of the Dispute : Principal Balance : Approximately {$53.00} Alleged Infraction : Payment received one day past the deadline. Penalty Charged : {$42.00} ( Late fee and interest ). You are attempting to charge me fees totaling nearly 85 % of the original purchase value due to a payment that was processed a single day late. This is not a reasonable penalty ; it is an exploitative practice designed to trap consumers in debt over trivial technicalities. My Position : I refuse to be a participant in these predatory lending tactics. Effective immediately, I have closed this account. I am willing to pay the legitimate debt incurred for the goods purchased. I have enclosed a check ( or made a payment online ) for {$53.00}, which covers the principal balance in full. I explicitly refuse to pay the {$42.00} in fees. I consider the principal balance satisfied and the account closed. Regarding Credit Reporting : Do not report this account as " delinquent '' or " charged off '' to the credit bureaus ( XXXX XXXX XXXX ). The principal debt has been paid. Reporting negative information regarding these disputed, predatory fees will be considered a violation of the Fair Credit Reporting Act ( FCRA ). If you report a negative mark based on these disputed fees, I will pursue all available remedies, including filing complaints with the Consumer Financial Protection Bureau ( CFPB ) and state Attorney General. Resolution : Please adjust the account balance to XXXX, waive the {$42.00} in contested fees, and send me a written confirmation that the account is closed with a " Paid as Agreed '' status. This is the second letter : Comenity Capital Bank Attn : Billing Errors/ Dispute Department XXXX XXXX XXXX XXXX, XXXX XXXXXXXX Subject : SECOND NOTICE OF DISPUTE - Escalation Regarding Predatory Compounding Fees Account Number : XXXX Previous Correspondence Date : XXXX To the Dispute Department : I am writing to formally escalate my ongoing dispute regarding my closed XXXX XXXX account XXXX Previously, I contacted you to dispute a late fee and interest charge totaling {$42.00}, which was assessed because a payment was processed a single day late. As stated in my initial correspondence, I refused to pay a penalty that amounted to nearly 85 % of my original purchase balance. I paid the principal balance of {$53.00} in full to cover the cost of the actual goods purchased and immediately closed the account. Instead of addressing my dispute and waiving the predatory fee as requested, you have now assessed an additional late fee of {$42.00} on the disputed, unpaid fee balance of {$44.00}. To be absolutely clear : I am being charged a {$42.00} late fee for refusing to pay a disputed {$44.00} fee. This is the definition of a predatory, compounding fee cycle. There is no legitimate principal debt remaining on this account. The entire outstanding balance consists solely of disputed punitive fees. I am reiterating my stance : My account is closed. I closed it previously, and I do not authorize any further use or maintenance of this account. I will not pay these fees. I refuse to be extorted by fees charged on top of disputed fees. This balance is officially in dispute. Under the Fair Credit Billing Act, you may not threaten my credit rating or report this disputed amount as delinquent while the dispute is pending. Required Resolution : I demand that you immediately cease this compounding fee cycle, waive the original {$44.00} in disputed fees, waive the new {$42.00} fee, and adjust the balance on this closed account to {$0.00}. I have forwarded this secondary issue to the XXXX XXXX XXXX. If this is not resolved and a XXXX balance is not confirmed promptly, my next step will be to file a formal regulatory complaint with the Consumer Financial Protection Bureau ( CFPB ) for abusive billing practices. I expect a written confirmation that this account has been zeroed out and closed with a " Paid as Agreed '' status.

Company response to consumer: Closed with explanation