Consumer complaint received 2024-09-27 00:00:00
Product: Credit card — Store credit card
Issue: Fees or interest — Charged too much interest
Company: Bread Financial Holdings, Inc.
State: TX

Complaint narrative:
Dear Consumer Financial Protection Bureau, I am writing to formally file a complaint against Comenity Bank regarding what I believe to be deceptive billing practices that have severely impacted my financial situation. 

In or around XX/XX/year>, I made a purchase using a promotion offered by Comenity Bank that provided 24 months of interest-free financing. To ensure I remained compliant with the terms of this promotion, I promptly set up an auto payment for the minimum amount due on my account. My understanding was that this would cover my obligations related to the promotional offer. 

Approximately one year later, I made an additional purchase using the same promotion. I assumed that my auto payment settings would continue to automatically cover the minimum amount due, as I had previously established. However, to my shock, I was recently notified by XXXX XXXX that one of my accounts had exceeded the credit limit. Concerned, I contacted Comenity Bank to investigate the issue. 

During my conversation with Comenity Bank, I was informed that their billing system does not automatically adjust auto payments when new purchases are made. This means that even though my obligations were increasing, my auto payments remained tied to the original amount I set up, which led to an unintentional failure to cover my balances over time. I was further told that the auto payment option I selected is based on a specific amount, despite the label indicating it was for the minimum payment due. This information is alarming and highlights a lack of transparency in their billing practices. 

If Comenity Bank 's claims are accurate, I believe I should have been charged a late fee when I failed to meet the adjusted minimum payment amount a year ago. Such a charge would have alerted me to the fact that my financial obligations were increasing. However, I never received any communication regarding changes to my payment amounts or missed payments, despite making payments of {$5400.00} over the past 24 months. 

Overall, I find it deeply concerning that Comenity Bank has not taken responsibility for this situation. I have never missed a payment, and I have actively stayed engaged in maintaining my account in good standing. The lack of notification about the increase in my minimum payment and the inability of their auto payment system to reflect my new obligations feels intentionally deceptive. 

In light of these issues, I respectfully urge the Consumer Financial Protection Bureau to investigate these practices at Comenity Bank. It is imperative that financial institutions adhere to fair and transparent billing practices to protect consumers from potential exploitation. If such practices are indeed part of a larger scheme to defraud customers, action must be taken to hold Comenity Bank accountable. 

Thank you for your attention to this matter. I look forward to your response and any guidance you can provide on how to proceed.

Company response to consumer: Closed with explanation