Consumer complaint received 2025-07-22 00:00:00
Product: Debt collection — Medical debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: Bread Financial Holdings, Inc.
State: FL

Complaint narrative:
Subject : Dispute Regarding Unfair {$1000.00} Fee Charged by XXXX Dear CFPB, I am writing to formally file a complaint against XXXX ( also known as Alfion ) regarding a {$1000.00} charge that was unfairly added to my account in XX/XX/XXXX, related to a medical financing agreement. 

Background : In XX/XX/XXXX, I signed a financing agreement with Alpheon to pay for medically necessary facial procedures I received at XXXX XXXX XXXX. The procedure was part of my recovery after a serious accident in XXXX that left me with facial injuries, XXXX XXXX XXXX, and other XXXX XXXX. I have continued to deal with severe health problems, and my ability to work has been impacted. 

As part of the agreement, I was to pay off the balance interest-free within one year. Based on my understanding and the procedure date ( late XXXX to early XX/XX/XXXX ), I believed the deadline to avoid any extra charges was XX/XX/XXXX. 

Problem : I was unaware that XXXX had started the countdown a full month earlier ( from XX/XX/XXXX instead of XXXX ). I only learned about the deadline from a single email dated XX/XX/XXXX, stating the final payment was due XX/XX/XXXX a very short notice. That email did not clearly state that a {$1000.00} fee would be added after the deadline. It only mentioned that a new payment plan would be created. At the time, I was not expecting or asking for a payment plan I was preparing to pay off the remaining balance in full and close the account. 

Due to my busy schedule, serious health issues, and overwhelming responsibilities, I did not see that email. I had not seen any other documents either. In my mind, I had a clear plan to make the final payment in XXXX, and I was fully prepared to do so. 

When I called XXXX to pay the remaining balance ( which I calculated to be {$1300.00} ), I was told the balance was now {$2300.00} due to the {$1000.00} fees .Same day I was told also I should pay another balance {$740.00}. On the same day I discovered this charge and wrote this complaint, I paid {$740.00} toward my balance. Under significant pressure, I was told I had to log into my account and create a new payment plan, and I felt I might face additional fees. I was stressed and confused, and I had no other option from XXXX, so I agreed to a new monthly plan of {$220.00} not because I accepted the charge, but because I was looking for a temporary solution while I dispute this fee. I am now reaching out to CFPB because I believe this process was unfair, misleading, and financially harmful. 

Request : I believe this {$1000.00} fee is unfair, misleading, and predatory. I am ready and willing to pay the remaining balance excluding the added {$1000.00}, but I can not afford this unjust charge. I request that this fee be removed and that my account be closed once the original balance is paid. 

I am in severe financial and physical distress and was not given any reasonable warning, support, or alternative. This practice feels like a violation of fair lending and debt collection standards. 

Thank you for your attention to this matter. I hope for a swift and fair resolution. 

Sincerely, XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation