Consumer complaint received 2026-05-20 00:00:00
Product: Credit card — Store credit card
Issue: Fees or interest — Charged too much interest
Company: Bread Financial Holdings, Inc.
State: FL

Complaint narrative:
Subject : Formal Complaint Regarding Unexpected Interest Charges on Promotional Financing Respected Team, I am writing to formally raise a complaint regarding unexpected and excessive interest charges applied to my account after completing a 12-month promotional payment plan. In XX/XX/year>, I purchased a ring from XXXX XXXX and was offered a 12-month interest-free payment option. I accepted this offer and set up auto-pay for the full 12 months, believing this would fully satisfy the balance without any interest, as represented at the time of purchase. At no point during the purchase processor afterwardwas I clearly informed that : * The financing was managed through Bread Financial in connection with XXXX XXXX, or * A high interest rate would be applied immediately after the 12-month promotional period, or * That failure to pay the entire balance by a specific date would result in such a large interest charge. Based on my understanding, XXXX XXXX XXXX marked the final payment period of my 12-month plan. However, after completing the promotional term, I was unexpectedly charged approximately {$460.00} in interest. My remaining balance was around {$320.00} only, and adding {$460.00} in interest for a single period is excessive and completely unexpected. Also every month they take {$10.00} for assurance fee which is I never know! I did not receive any phone call, email, mailed notice, or other communication warning me of this significant interest charge. Had I been properly informed, I would have taken steps to avoid this situation. I contacted customer service, and while the initial representative was courteous, they stated they were unable to help. When escalated to a supervisor, I was advised to seek government financial help, and the interaction felt dismissive and disrespectful, which was very upsetting. This situation feels unfair and misleading, especially given that : * I complied with the 12-month auto-pay agreement * I was not adequately informed of post-promotion consequences * The interest amount charged is disproportionately high I am respectfully requesting : 1. A review of my account, 2. Removal or reduction of the {$460.00} interest charge, and 3. A fair resolution based on lack of proper disclosure. I value transparency and ethical business practices, and I hope this issue can be resolved amicably and promptly. Additionally, I contacted XXXX XXXX directly and spoke with the store manager. I was informed that they could not assist me and that they have no connection with the bank. This response is deeply concerning. I had no prior knowledge of or relationship with the financing bank before this purchase. The financing option was introduced, explained, and processed entirely by the sales staff at XXXX XXXX. At no point was I clearly informed of deferred interest, the high post-promotional interest rate, or the consequences of not paying the full balance by a specific date. It is unreasonable for the retailer to deny responsibility after having facilitated the financing and influenced my decision to proceed. Had accurate and complete information been provided at the time of sale, I would have made a different financial decision. Thank you for your time and attention. I look forward to your response.

Company response to consumer: Closed with explanation