Consumer complaint received 2025-05-26 00:00:00
Product: Debt collection — Credit card debt
Issue: Attempts to collect debt not owed — Debt was paid
Company: Bread Financial Holdings, Inc.
State: NJ

Complaint narrative:
This account was opened in XX/XX/XXXX. It was used and timely payments were made, never missing or having a late charge ever. In XX/XX/XXXX this account was closed at the request by me, on a phone call to Comenity bank. I explained my reasons of recently be seriously injured in the line of duty as a XXXX XXXX XXXX then being directly affected by complications with XXXX XXXX, requiring XXXX separate hospitalization stays, both just over a week. This affected me and my family not only economically. but medically and emotionally. Duty related injuries and ongoing diagnosis of XXXX which to date, Im still being treated monthly for continued. On this phone call with Comenity bank, I was placed in a customer assistance program, paying XXXX XXXX  monthly for 6 months and if still having issues, call and changes to this program would be discussed. On XX/XX/XXXX I received a letter from Comenity bank as to this customer assistance program will be ending soon, as to existing hardship program. I called Comenity bank on XX/XX/XXXX @ XXXX XXXX  EST to discuss this account and still not able to make normal payments to this closed account. I was then placed into another program of customer assistance which detailed me continuing to pay XXXX XXXX monthly, til a total of {$190.00} was paid back of the original balance of {$320.00}. After paying back the {$190.00} any balance left, which was {$130.00} would be forgiven in the issue of a 1099c form and that form would need to possibly be reported as earned income per IRS laws. Id have to discuss this with my tax representative. Last payment of {$10.00} was made in XXXX or XXXX of XXXX, after paying back the agreed {$190.00} them Comenity bank issuing the 1099c form. I never received the 1099c form for XXXX tax year but noticed this account was now being reported as late payment or missing payments on my credit report. Ive disputed this through XXXX credit reporting on line. Now, on XX/XX/XXXX I received a letter from Comenity bank, dated XX/XX/XXXX of this account being sold to a collection company, XXXX XXXX XXXX XXXX XXXX with a balloon balance of {$500.00}. This alleged balance is 1st incorrect, not accurate, misleading and false statement of this closed account and its history of being in a customer assistance program, completion of program and debt forgiveness of {$130.00} with this issue of a 1099c form. This is borderline fraudulent and unethical business behavior. This company, Comenity bank seems to have knowingly and willfully increased this balance from {$130.00} to {$500.00}. Then Comenity bank charged of/written off this amount for insurance purposes and tax reasons fraudulently then appears to instead of issuing a 1099c form as agreed, then unethically sells an alleged and inaccurate closed account to a collection company for attempted recovery. I do not own any amount of this alleged debt and this unethical business practice is being reported to the XXXX XXXX XXXX XXXX XXXX XXXX, the NJ Attorney Generals Office and now your agency for official complaint. Im asking the CFPB to intervene and stop this illegal activity and having to deal with a collection company, XXXX XXXX XXXX XXXX were this alleged fraud debt was sold to and would attempt to collect on this false debt amount and related charges. This complaint is not only an official complaint of unethical business practices by Comenity bank, but reporting false and inaccurate balances, accounting and possibly insurance fraud of charge off/written off of an alleged amount which is inaccurate and misleading. Im copying XXXX XXXX XXXX XXXX as well to be aware of this to avoid and further disputes and complaints with the possible attempts to collect on this alleged account which contains incorrect and inaccurate information as to balance, statue and prior agreement with the original creditor as to customer assistance payments and the issue of debt forgiveness of any remaining balance, which was {$130.00}. This inaccurate accounting is {$370.00} more or false information being provided I would close out this complaint with a warning to both Comenity bank and XXXX XXXX XXXX XXXX, I would like to also inform you that if your office have or continue to report invalidated information to any of the three major credit bureaus, ( XXXX XXXX  XXXX XXXX ) this action might constitute fraud under both Federal and State laws. Do to this fact, if any negative mark is found or continues to report on any of my credit reports by your company or the company you represent, I will not hesitate in bringing legal action against you and your client for the following : Violation Of The Fair Debt Collection Practices Act and Defamation of Character Im sure your legal staff will agree that non-compliance with this request could put your company in serious legal trouble with the FTC and other state and federal agencies.

Company response to consumer: Closed with non-monetary relief