Consumer complaint received 2026-03-10 00:00:00
Product: Credit card — Store credit card
Issue: Fees or interest — Unexpected increase in interest rate
Company: Bread Financial Holdings, Inc.
State: MA

Complaint narrative:
I am filing this complaint regarding what I believe to be misleading and deceptive financing practices associated with a store credit account issued by Comenity Capital Bank for a purchase made at XXXX. Approximately XXXX year and XXXX months ago, I made a purchase at a XXXX store and opened a credit account through Comenity Capital Bank to finance the purchase. At the time of the transaction, the store representative informed me that my minimum monthly payment would be about {$54.00}. I was also told that if I paid approximately {$100.00} per month, the balance would be paid off within the year and I would avoid any interest charges. Based on this explanation, the promotion was clearly presented to me as an interest-free loan for one year as long as I followed the recommended payment amount. Relying on this information, I enrolled in automatic payments and paperless billing and consistently made my payments on time. However, after the promotional period passed by approximately one month, I discovered that {$710.00} in deferred interest had been added to my account on a remaining balance of {$900.00}. When I contacted Comenity Capital Bank, I was informed that because the balance had not been fully paid by the promotional deadline, all interest for the entire year had been retroactively applied. This was the first time it was clearly explained to me that the promotion functioned as a deferred-interest agreement rather than a simple interest-free promotion. The information provided at the store led me to believe that following the recommended payment plan would allow me to avoid interest charges. Had the terms been clearly explainedthat the full balance had to be completely paid before the deadline or all accumulated interest would be appliedI would have ensured the balance was paid in full before that date. Additionally, when I requested copies of my contract and disclosures regarding the promotional period, I was told they were only available online because I was enrolled in paperless billing. My request to have these documents mailed to me was refused. I believe the promotional financing was misrepresented at the time of purchase and that the explanation provided by the sales representative created the impression that the financing would remain interest-free if I followed the payment guidance given to me, which I did. I respectfully request that this matter be reviewed and that the {$710.00} deferred interest charge be reconsidered or removed so I can resolve the remaining principal balance. I am also concerned that the promotional financing may have been misrepresented at the point of sale. The explanation provided by the sales associate created the clear impression that making the recommended monthly payments would allow the balance to be paid within the year and prevent interest charges. At no point was it clearly explained that the promotion functioned as a deferred-interest agreement where all interest for the entire year would be retroactively applied if the balance was not fully paid by the promotional deadline. Because this critical condition was not clearly disclosed to me during the purchase, I believe I may have been misled about the true nature of the financing terms. I respectfully request a full review of this matter and a goodwill adjustment removing the {$710.00} deferred interest so that I may resolve the remaining principal balance promptly.

Company response to consumer: Closed with explanation