Consumer complaint received 2021-08-03 00:00:00
Product: Debt collection — Credit card debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: Bread Financial Holdings, Inc.
State: NM

Complaint narrative:
I have an account with Comenity XXXX XXXX, by virtue of a purchase I made at XXXX XXXX XXXX in XXXX ( XXXX ). 

In XXXX I submitted a payment which was mailed timely and processed late. The check I submitted in payment for XXXX in the amount of {$130.00}, dated XX/XX/XXXX. That was 4 days prior to the due date. I have no image since it seems Comenitys practice is to not return negotiated checks to the bank. The next statement indicated Comenity processed the check on XX/XX/XXXX, and the transaction hit my bank on XX/XX/XXXX. Comenity asserts it was received late which I dispute. 

I sent a letter to the CFO of Comenity expressing my dispute dated XX/XX/XXXX, after being stonewalled by two reps of Comenity. I received no response. I sent a second letter disputing the assessment of late fees on XX/XX/XXXX, with a payment of the full outstanding balance of the loan from the purchase, as indicated on the billing statement. That amount was {$5300.00}. 

This payment was recorded on the subsequent statement. 

I received a letter from Comenity dated XX/XX/XXXX, in response to complaints filed with CFPB and XXXX. This letter was 44 days after the date of my initial letter. Prior to that date I received no letter from Comenity in response to my letters sent directly to them. I did receive a letter from Comenity dated XX/XX/XXXX concerning my dispute, which I presume was in response to my letter to their CFO. No dispute ID was shown in the letter. The response merely stated the issue was under investigation. The response time for both exceeds that permitted under the Fair Credit Billing Act. 

The Comenity response to XXXX  and CFPB was that the account was reviewed and was deemed correct. No other explanation or supporting documentation was provided. 
The FCBA stipulates that I may withhold payment on the disputed amount ( and related charges ) during the investigation. " You must pay any part of the bill not in question, including finance charges on the undisputed amount. '' I paid undisputed charges, finally paying off the note. Comenity continued to assess late fees and interest, contrary to the FCBA.

The FCBA also states the creditor may not take any legal or other action to collect the disputed amount and related charges ( including finance charges ) during the investigation. Comenity continued to assess interest and charges during the pendency of the dispute. Moreover, when I submitted my payment to discharge the loan, rather than adhering to my clear instructions, Comenity applied part of that payment to the disputed interest and fees, contrary to the FCBA. 

I responded to the Comenity letter of XX/XX/XXXX, on XX/XX/XXXX, continuing to assert my dispute and presenting them with what I assert are factual errors on their part. Comenity historically processed payments within 4 days, which was also the time for my XXXX payment. Comenity began processing considerably longer than other credit companies I do business with in XXXX and after, and which has degraded in the time period shown. 

I assert the issue with the payment processing is due to internal problems that Comenity is experiencing, probably related to Covid, particularly staffing shortages experienced by other companies. 

On XX/XX/XXXX, I sent another letter to Comenity objecting to their XX/XX/XXXX letter and assertion that my XX/XX/XXXX payment was made timely. The XXXX payment timeliness was never in dispute. Comenity ignored my rebuttal to their previous letters. In my XX/XX/XXXX letter I asserted my rights under the FCBA, including wanting documentation in support of their assertions, and advising them of their violations of the FCBA, and finally putting them on notice concerning reporting to credit agencies.

The FCBA states that any creditor who fails to follow the settlement procedure may not collect the amount in dispute, or any related finance charges, up to {$50.00}, even if the bill turns out to be correct. I assert that in several areas Comenity has failed to adhere to the law. However the {$50.00} cap is meaningless in the context of Comenity continuing to assess late charges and interest, which is as coercive as it is wrong. 

Given the other matters of this dispute, I fully expect Comenity to ignore the {$50.00} carve out, as they have ignored my dispute in general. This is not surprising when viewed in context with reports of class action suits against Comenity and a litany of complaints shown in the XXXX  and CFPB records. There are also a long list of complaints on the Comenity XXXX page. 

A Class action lawsuit filed on XX/XX/XXXX in United States District Court, Central District of California, Southern Division, against Comenity Bank, alleges improper debt collection practices. 

Class action suits alleging violations of the Telephone Consumer Protection Act were filed in XXXX, and XXXX. In XXXX the company settled a class action suit filed under the TCPA for {$8.00} XXXX. This XXXX lawsuit was settled shortly after it was filed. Suits have also been filed against Comenity Bank for violations of the TCPA in West Virginia, Pennsylvania, and California. 

The XXXX  reports Comenity reviews of 1.04/5, which is very consistent with my experience. The specific reviews are abysmal. What is troubling is that my own review which I submitted a few days ago does not show up. The XXXX  gives Comenity a F rating and the company is not XXXX  accredited. 

I examined the XXXX  complaints shown on the web site and Comenity consistently responds with, We appreciate you taking the time to let us know you have concerns. We will begin researching immediately and will contact you when our investigation is complete. 

There is no evidence that any resolution occurred. Moreover, the complaint I submitted, in some detail, is not even shown. 

I examined reviews on ConsumerAffairs. Comenity has a rating of 3.5/5, but looking at the actual reviews in the last 12 months I only found one good one. Most of the rest were rated 1. 

In XXXX the FDIC announced settlement with Comenity Bank and Comenity Capital Bank for Deceptive Practices. 

It is clear that Comenity is a bad actor. This is my second complaint to CFPB. CFPB merely accepted the initial Comenity response at face value and dropped the matter. I submitted an extensive rebuttal, but I can not find it anywhere on the CFPB site. How can consumers be warned about bad business practices if the information is not provided? This complaint concerns not only the original issue of Comenity improperly assessing late fees and interest, but also for violations of the Fair Credit Billing Act. 

I request that you contact Comenity and require them to discontinue their usurious practices, remove all assessed fees and interest, refund the amount I paid under duress and under protest, and close the account as I have requested.

Company response to consumer: Closed with explanation