Consumer complaint received 2024-12-29 00:00:00
Product: Debt collection — Credit card debt
Issue: Attempts to collect debt not owed — Debt was result of identity theft
Company: Bread Financial Holdings, Inc.
State: NC

Complaint narrative:
Summary : I am being contacted by a debt collection agency regarding a credit card account and charge that has been deemed fraudulent by the issuing credit card company. The issuing credit card company sold that account even though they have provided in writing 3x that I am not responsible for the charges and now I am dealing with a debt collection agency. Something inappropriate is happening here and needs to be investigated. 

On XX/XX/XXXX I received an Ulta Beauty Rewards Mastercard Credit Card bill and on it there was a transaction for {$490.00}. I do not have an Ulta Beauty Rewards Mastercard Credit Card and I did not make that transaction. I immediately took the following steps : I reported identify theft to the FTC - XXXX. # XXXX I froze my credit I open disputes with the credit bureaus I called the credit card issuing bank which is Comenity Capital Bank. 

Speaking with the fraud depart of Comenity Capital Bank, I opened a fraud case # XXXX. I was told to call back in 2 weeks. On XX/XX/XXXX, I called back and was told they need more time to complete the investigation. Some time in XXXX I receive a phone call from Comenity Capital Bank asking me when I plan to pay my Ulta Beauty Rewards Mastercard Credit Card bill. I explained to the fraudulent situation and was transferred to the Comenity Capital Bank fraud group. After explaining again that the card was NOT opened by me and the charge was NOT mine, the fraud representative said they will follow up on my case. 

On XX/XX/XXXX, I receive a letter from Comenity Capital Bank that after their thorough investigation of my claim, they have concluded that I am not responsible for the disputed balance amount on the Ulta Beauty Rewards Mastercard credit card account. In addition they have submitted a request to the 3 national credit reporting agency to remove this account from my credit bureau report; signed the Account Protection Team. On the same day of receiving this letter, I wrote a letter to Comenity Capital bank to please forward proof that this fraudulent account has been closed. Instead of receiving proof of the account closed, I received copies of the XX/XX/XXXX letter on XX/XX/XXXX and again on XX/XX/XXXX. 

At this point everything seemed to be completed appropriately until XX/XX/XXXX. I received a letter from Comenity Capital Bank - from their Recovery Team, informing me the Ulta Beauty Rewards Mastercard credit card account was closed, charged off and sold to XXXX XXXX XXXX XXXX. I called Comenity Capital Bank, spoke to someone named XXXX XXXX about how the account was fraudulent, how I have documentation stating I am not responsible for the charges and was assured the issue will be looked into. 

Since XXXX XXXX XXXX XXXX has called, sent letters and even provided copies of Ulta Credit card bills that were never delivered to my address. The debt collection agency claims I now owe {$710.00} and if I want to dispute this debt I can write them about it. 

Here is the problem with entire scenario. Not only is my time valuable, the charge was determined by Comenity Capital Bank to not be my responsibility and yet now I am in a position, where I am responsible for defending myself to a debt collector when they shouldn't have access to the account in the first place. There is something inappropriate happening here. Either Comenity is completely incompetent or perhaps they are selling fake overdue accounts. Another possible scenario is the collection agency is working to collect on known resolved accounts and are trying to swindle money from me that I do not owe. This is why I am submitting this complaint. Thank you for your attention to this matter.

Company response to consumer: Closed with explanation