Consumer complaint received 2024-06-15 00:00:00
Product: Credit card — Store credit card
Issue: Problem when making payments — Problem during payment process
Company: Bread Financial Holdings, Inc.
State: NY

Complaint narrative:
Dear Sir/Madam, I am writing to formally lodge a complaint against Comenity Bank regarding their handling of my Sephora Visa Signature Credit Card account , which has caused significant and ongoing financial distress due to erroneous credit reporting as a result of repeated system outages impacting ability to complete payments. In the summer of 2022, I opened a new Sephora Visa Signature Credit Card. After opening this account, Comenity Bank 's Sephora Credit Card system experienced repeated outages, causing frequent inabilities for customers to complete payments. This outage led to me being wrongfully charged late fees in and XXXX of 2022, which was then erroneously reported as late to the credit agencies. To resolve the issue, I promptly contacted customer service. They acknowledged the error, agreed to reverse the wrongfully charged late fees, and assured me that no late payments would be reported to my credit agencies, as they were at fault given customers could not access their accounts. The late fees were subsequently reversed on my account, and I was issued a check to reimburse me for the wrongfully charged fees. However, I later discovered that Comenity Bank never removed the report from my credit agencies, which caused my credit score to drop by XXXX points. When I followed up with them on their promise to remove the reported late payment from my credit report, they denied my request. It has been impossible to get in touch with anyone who can effectively manage my complaint. Each time I have reached out for a resolution, I am put into a queue of overseas agents who have consistently made misspellings in their responses, indicating a lack of professionalism and effective communication. Despite my repeated attempts to resolve the complaint over the last 2 years, my credit report still reflects a late payment that Sephora reported during their system outage. This report, and consistent issues with accessing my account and completing payments, has caused me significant financial distress and has impacted my ability to apply for loans, apartments, and other essential financial activities. I have thus discontinued use of this credit card, but the account remains open while I seek resolution. After researching online, I have found that many other customers experienced similar issues with Comenity Bank 's Sephora Visa Signature Credit Card in the summer and fall of 2022, following the opening of their credit card accounts. Given the significant impact on my financial standing and the lack of resolution from Comenity Bank, I am requesting the Consumer Financial Protection Bureau 's assistance in the following resolutions : Immediate removal of the late payment report from all credit agencies. A formal apology from Comenity Bank for their handling of this situation and assurance that similar issues will be prevented in the future. Thank you for your attention to this matter. I look forward to a prompt and satisfactory resolution to my complaint.

Company response to consumer: Closed with monetary relief