Consumer complaint received 2024-09-10 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Fees or interest — Problem with fees
Company: Bread Financial Holdings, Inc.
State: WA

Complaint narrative:
Please note that there is supporting documentation for everything in this complaint. 

I would like to report a fraud in terms of how Comenity Bank/Bread Financial processes online payments via checking accounts and how this lead to bizarre late fees, as well as a series of completely unnecessary and gratuitous lies made by workers at that company. 

I was a new customer. I went with the AAA sponsored Visa Credit Card that Comenity/Bread Financial underwrites due to the discounts for various different kinds of purchases. I generally prefer the processing of payments online and directly through merchants. I prefer not working with Autopay because I will change what I pay each month. 

The issue is how they process payments for new accounts and the lack of account authentication when the customer initially enters their account information, especially in relation to payment options ( in this case, supposed direct linkage to my checking account ). Worse, due to this lack of account authentication when initially entering this information, which is standard for nearly every other merchant in existence in XXXX for online transactions, regardless of whether it is a debit, credit card or checking account based, in their system, a customer will not know that they entered the account or routing number incorrectly because they do not authenticate account information until a payment is first made. 

For example, please refer to the " AAA Daily Advantage Visa Signature Credit Card Checking Account letter XXXX '' file. This is an automated email through their system that acknowledges the entry of checking account information, but does not validate it.

Next, please refer to the AAA Daily Advantage Visa Signature - Checking Account Information.pdf file. This is from their website portal. My account number is not fully shown, thus preventing me from seeing if I may have made a mistake in terms of entering account information. 

Nor did their system notify me of any kind of mistake! 

Please refer XXXX XXXX - Record of Transactions.pdf file. The issue in question was the payment I made on XX/XX/XXXX for {$150.00}. The payment was scheduled for that day ( please refer to the " AAA Daily Advantage Visa Signature Credit Card payment authorization letter - XXXX '' file ) and executed end of business day. It is not executed upon entry and not validated until then! 

Now, if you review the XXXX XXXX XXXX Record of Transactions.pdf file, this transaction was reversed by the bank on XX/XX/XXXX because, as stated subsequently by their workers more than a week later ( and by my bank XXXX ), the account number was supposedly missing a digit. There are two problems with this explanation ; one, I can not see my account number to confirm that what I am being told is true. Second, please refer to the AAA Daily Advantage Visa Signature - XXXX '' file, which states they processed my payment, while not telling me that the account number was incorrect and the payment was already reversed. 

Their emails. Their documents. Now comes the lies by their workers. 

In light of the fact that they do not authenticate account information for payment when entered by a customer through their web portal, a cardholder has no real means of knowing if anything is wrong, even though their system has already told me that they have executed a payment against my checking account. 

The ONLY reason why I know there is a problem is due to my contacting my bank after a week when I did not see any kind of transaction made against my checking account. They instituted an investigation and told me about the missing digit, assuming this was the reality of the problem. I do not know, because I have no real means to confirm. 

In effect, they reversed the payment without telling me about a problem, while instead notifying me about a payment that was processed three days after the fact. 

I then called Comenity/Bread Financial multiple times and was told a series of lies to perpetuate the late fees and damage this does to my credit. 

One of their workers told me how payment and schedule confirmation payment emails are both one and the same. Look for yourself to see that is not the case. Another one tells me that they will issue a full credit for the {$30.00} and adjust everything, then goes through the motions of putting me on hold while pretending they get permission. If I wanted theater, then I would go to the theater. This past Saturday I was told that the maximum issued credit from this framework is {$15.00}. Then they freeze my account for three months for something they, themselves created.

One lie after another, while also calling me abusive. 

I corrected that payment on XX/XX/XXXX, thus generating late fees ( even though I initially paid one week early on XX/XX/XXXX ), while never being notified that the other payment was reversed. Payment was processed the next day and I have attached a copy of their automated payment email on XX/XX/XXXX. I can also send you email records of schedule confirmation, as well as how I changed checking account information on XX/XX/XXXX, while still clearly not being AUTHENTICATED! 

I have no problem with being transparent. I have a very real problem when others try to treat me like I am demented! 

I also filed an Ethics Complaint with their corporate office ( please refer to " Ethics Compliant with Bread Financial - Began XXXX '' file for confirmation ), spoke briefly with some employee named XXXX the next day and never heard back from her again. Worse, what was supposedly a two week suspension of the use of the card, has now turned into three months, while they collect interest on the card. 

Different stories from different workers, though I did get a {$15.00} credit and no other reversal. 

This is ridiculous! 

Nor am I responsible. 

Think about it. The bank sends me a payment processing email three days after the fact, when they have already reversed a payment three days before? How does that work? Nor do I care what is in their customer agreement if it allows for these kinds of lies and idiocy, in addition to what it does to my credit. 

I knew I was late on XX/XX/XXXX. I told their workers as such. Nor am I saying that I may have entered the account information incorrectly, though I have no real means to confirm anything they tell me, in light of how their system works. If I am late, then it is directly due to their system and the lies of their employees. It is systemic, opaque and not worth arguing over. Nor do their own documents lie.

I will gave them one week to reverse everything. It is now a month. Nor will I make any future payments through this kind of system again. It is not safe or secure. Better to execute electronic transactions directly through my checking account with XXXX. That is something I can control directly. 

As for the lies, you tell me why? I have no clue as to why they are even necessary. Nothing I have asked for is unreasonable or uncalled for! 

I also tried to contact AAA Corporate. That is still a nightmare work in process. 

I want them reverse everything, fix my credit and pay for all their lies and deceit. They are likely legal limits in the customer contract and it takes months and cash to start arbitration. I assure you that Comenity/Bread Financial knows that as well. 


XXXX XXXX XXXX XXXX XXXX XXXX. XXXX XXXX, WA, XXXX Cell : XXXX

Company response to consumer: Closed with monetary relief