Consumer complaint received 2025-01-24 00:00:00
Product: Debt collection — Credit card debt
Issue: Written notification about debt — Didn't receive notice of right to dispute
Company: Bread Financial Holdings, Inc.
State: NJ

Complaint narrative:
To Whom It May Concern, I am writing to formally dispute the accuracy and validity of a collection account reported on my credit report. This account is reportedly owned by **Bread Financial**, a subsidiary of **Comenity Bank**. While the account is listed as **paid**, it is still reflected in **collection charge-off status**, which is inaccurate and misleading to creditors and violates my consumer rights. 

Additionally, I have searched for the NMLS number associated with Bread Financial and/or Comenity Bank XXXX but it ** can not be located** through public resources such as the Nationwide Multistate Licensing System ( NMLS ) Consumer Access portal. This raises concerns about whether Bread Financial or Comenity Bank is properly registered or authorized to collect and report this debt.

# # # **Violations of Federal Consumer Laws : ** 1. **15 USC 1681s-2 ( a ) ( 1 ) ( A ) : ** Reporting inaccurate or misleading information to consumer reporting agencies is a violation of the Fair Credit Reporting Act ( FCRA ). The account can not simultaneously be marked as " paid '' and remain in " collection charge-off status. '' 2. **12 CFR 1006.34 ( b ) ( 5 ) : ** You have not provided proper validation of the debt, yet this account continues to be reported in a harmful and misleading manner.

3. **12 CFR 1006.34 ( c ) ( 4 ) ( i ) : ** I was not given the required opportunity to dispute the account before it was reported, which constitutes a violation of my rights.

4. **15 USC 1681s-2 ( a ) ( 7 ) : ** As the reporting entity, you have not provided me with all legally required disclosures, nor have you shown sufficient evidence of your right to report this account to credit bureaus.

5. **False and Misleading Practices : ** Reporting an account as " paid '' while retaining its " collection charge-off '' status misrepresents the true nature of the account and is deceptive. 

# # # **Requests for Resolution : ** To resolve this issue fairly, I demand the following actions : 1. **Immediate removal** of this collection account from my credit reports with all major credit reporting agencies ( XXXX, XXXXXXXX XXXX XXXX XXXX XXXX 
2. **Validation of the debt**, including : - Proof of payment and the original signed contract with the creditor. 
- Documentation explaining why the account is still being reported in charge-off status despite being marked as paid. 
- A copy of the purchase or transfer agreement between Bread Financial ( or Comenity Bank ) and the original creditor. 
- Proof that your company is licensed and bonded to collect debts in my state and clarification of your XXXX  registration. 
3. **Cease all further communication** with me via phone calls, text messages, emails, or any other means. Continued contact after this notice will constitute a violation of 15 USC 1692k.

# # # **Additional Notes : ** It is important to note that Bread Financial and Comenity Bank are jointly responsible for ensuring accurate reporting. As this account is inaccurately listed and the XXXX registration can not be verified, I demand a full investigation into their compliance with consumer protection laws. 

Please respond to this dispute within 30 days of receipt, as required by law. Failure to correct the reporting or provide validation will result in additional complaints filed with the Consumer Financial Protection Bureau ( CFPB ) and Federal Trade Commission ( FTC ), as well as potential legal action. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with non-monetary relief