Consumer complaint received 2024-07-25 00:00:00
Product: Credit card — Store credit card
Issue: Problem when making payments — Problem during payment process
Company: Bread Financial Holdings, Inc.
State: AZ

Complaint narrative:
I am submitting this complaint against Commenity - Victorias Secret for the following violations : 1. Fraud ( 12 CFR 1026.9 - Unfair or deceptive acts or practices ) : Commenity - Victorias Secret engaged in fraudulent activities by Failing to honor checks or drafts : Refusing to pay legitimate checks or drafts, or delaying payment without proper reason ( UCC 3-302, 3-303 ).

Unauthorized signatures : Allowing or creating unauthorized signatures on checks, drafts, or other negotiable instruments ( UCC 3-403 ). 
Altering documents : Modifying or altering checks, drafts, or other negotiable instruments without proper authorization ( UCC 3-407 ).

Failing to provide proper notice : Not providing adequate notice of dishonor, non-payment, or other important events related to negotiable instruments ( UCC 3-503, 3-504 ).

Wrongful dishonor : Dishonoring a legitimate check or draft without proper reason, leading to damages or losses for the customer ( UCC 3-502 ).

Failing to act in good faith : Not acting with honesty and fairness in transactions, such as hiding fees or terms ( UCC 1-203 ).

Misrepresenting account status : Falsely reporting account balances, transaction history, or other important information ( UCC 4-202, 4-203 ).

Failing to comply with stop payment orders : Not honoring valid stop payment orders, allowing unauthorized transactions to occur ( UCC 4-403 ).

2. Misrepresentation ( 12 CFR 1026.2 - Definitions and rules of construction ) : Commenity - Victorias Secret misrepresented their services and products. If a bank creates credit without disclosing it, and instead makes the borrower believe they're receiving a loan, it can also be considered a form of peonage. Peonage is a system where a person is forced to work to pay off a debt, often with little control over their circumstances. In this context, the bank 's actions could be seen as a form of peonage, as the borrower is : Misled about the source of funds Forced into a debt obligation without full understanding Required to work to pay off the debt, with interest This can lead to a cycle of debt, where the borrower is trapped in a situation they didn't fully understand or agree to. Peonage is illegal in many jurisdictions, and banks have a responsibility to avoid practices that could be seen as coercive or exploitative. 

3. Breach of Contract ( 12 CFR 1026.9 - Unfair or deceptive acts or practices ) : Commenity - Victorias Secret failed to fulfill their obligations under our agreement, specifically : Fiduciary duty : Banks have a fiduciary duty to act in the best interests of their customers, including honoring legitimate bills and bills of exchange. 
Contractual obligations : The bank 's failure to honor a bill or bill of exchange can be seen as a breach of their contractual obligations to their customer. 
The UCC sections 3-102, 3-303, and 3-305 outline the bank 's responsibilities regarding negotiable instruments, including bills of exchange. 
Breach of warranty : By failing to honor a bill or bill of exchange, the bank may be breaching their warranty to accept and pay legitimate instruments.

4. Unlawful Banking Practices : Commenity - Victorias Secret misrepresented that they lent me money, when in fact, my energy was the source of the credit. HJR192.

5. UCC Violations : 3-102. Alteration : Commenity - Victorias Secret altered the terms of our agreement without my consent.

3-305. Defenses and Claims in Recoupment : Commenity - Victorias Secret failed to provide a valid defense for their actions.

4-103. Conditions of Liability : Commenity - Victorias Secret is liable for their actions under the UCC. 

Explanation : I created the credit through my loan application, which was then monetized by Commenity - Victorias Secret without my knowledge or consent. I tendered setoff with negotiable interments which were ignored. I requested Validation of the debt including certified accounting documents, which was also ignored. I then requested rescission on the account for fraud in many capacities. All documents were mailed certified mail with acceptance by COMMENITY - VICTORIAS SECRET on ALL.

Company response to consumer: Closed with non-monetary relief