Consumer complaint received 2026-06-08 00:00:00
Product: Credit card — Store credit card
Issue: Advertising and marketing, including promotional offers — Confusing or misleading advertising about the credit card
Company: Bread Financial Holdings, Inc.
State: TX

Complaint narrative:
Consumer Financial Protection Bureau Complaint Issue : Deferred Interest Financing / Credit Card Account ( Comenity Bank Arhaus Credit Card ) I am filing this complaint regarding a deferred-interest promotional financing offer administered by Comenity Bank through the Arhaus credit card program. While I understand and acknowledge that I agreed to the promotional financing terms, I believe Comenity 's notification and disclosure practices surrounding the expiration of the promotion were inadequate and resulted in an unfair financial outcome. In 2024, I financed approximately {$8000.00} of furniture through an Arhaus credit card promotional offer that provided deferred interest if the balance was paid in full within XXXX years. Throughout the entire promotional period, I maintained an excellent payment history, made every required payment on time, and never became delinquent on the account. For approximately 24 months, I consistently made my monthly payments and remained in good standing. Unfortunately, after the promotional period expired, Comenity assessed {$7100.00} in retroactive interest because the remaining balance had not been paid in full by the promotional expiration date. My primary concern is not that the deferred-interest provision existed. Rather, it is the manner in which Comenity communicated the approaching expiration of the promotion and the severe consequences associated with missing the deadline. I had elected to receive paperless statements. The only notice of the approaching promotional expiration appears to have been included within my monthly statements. I did not receive a separate email, text message, phone call, secure message, or other prominent communication specifically warning that the promotional period was ending and that failure to pay the remaining balance in full would result in more than {$7000.00} of retroactive interest charges. Given the significant financial consequences involved, I believe consumers should receive clear, direct, and proactive notifications before deferred-interest charges are triggered. A two-year promotional period is a lengthy timeframe, and it is reasonable that consumers may lose track of an expiration date despite consistently making payments and maintaining their accounts in good standing. Importantly, I had both the ability and intention to pay the remaining balance. Had I received a clear warning explaining that the promotional period was ending and that a {$7100.00} interest charge would be assessed, I would have immediately paid the balance in full. At the time the promotional period expired, my remaining balance was approximately {$6000.00}. Following expiration of the promotion, Comenity assessed {$7100.00} in retroactive interestan amount that exceeded the remaining balance owed. While I understand this may be consistent with the contractual terms of a deferred-interest promotion, the outcome appears disproportionate given my payment history and the fact that I had successfully maintained the account for XXXX years without a single late payment. Additionally, my furniture was not delivered until XX/XX/year>, yet the promotional financing period began in XX/XX/year>. As a result, the promotional period expired before I had even possessed and used the merchandise for a full XXXX years. While this may be permitted under the financing agreement, it contributed to confusion regarding the true duration of the promotion from a consumer perspective. After discovering the retroactive interest charge, I immediately contacted customer service and escalated the matter to management. During that conversation, I was informed that I had an excellent payment history and was considered a valued customer. However, I was also told there was no mechanism available to review, reverse, reduce, or otherwise reconsider the {$7100.00} interest chargeeven if I immediately paid the remaining balance in full. I am not disputing that I agreed to the financing terms. Rather, I am requesting a fair resolution based on my strong payment history, the lack of meaningful advance notification regarding the promotional expiration, and the disproportionate nature of a {$7100.00} interest assessment resulting from a missed deadline after XXXX years of timely payments. Thank you for your review of this matter.

Company response to consumer: Closed with explanation