Consumer complaint received 2023-08-09 00:00:00
Product: Credit card or prepaid card — General-purpose credit card or charge card
Issue: Fees or interest — Charged too much interest
Company: Bread Financial Holdings, Inc.
State: OR

Complaint narrative:
Consumer Financial Protection Bureau XXXX XXXX XXXX XXXX  XXXX, Iowa XXXX Subject : Complaint Against Comenity Capital Bank 's Predatory Practices Dear Sir/Madam , I write to lodge a formal complaint against Comenity Capital Bank for what I perceive to be their predatory business practices, especially concerning their credit card promotions. This experience has not only caused me financial duress but has also made me deeply concerned about the broader implications of such practices on unsuspecting consumers. 

On XX/XX/XXXX, I made a purchase of {$1200.00} from XXXX XXXX XXXX XXXX  using Comenity Bank 's Payboo Card promotion, which promised zero interest for 12 months. Relying on their terms and believing in their transparency, I set up an automatic monthly payment of {$100.00}. As of XX/XX/XXXX, my remaining balance was a mere {$53.00}. To my shock, Comenity Bank levied an interest charge of {$170.00} on this balance, an action that feels not only exploitative but also deceptive. 

Key Issues : Lack of Communication : Despite the looming interest accrual, there was no prior communication - be it a paper bill, an email, a text, or even a simple phone call, to alert me of this impending charge. 

Predatory Promotion Terms : The terms and conditions associated with the promotion are designed in a manner that seems intended to trap consumers. While businesses have the right to earn interest on overdue amounts, the sheer magnitude and method of this interest application, particularly when the outstanding amount was so minimal, is hard to view as anything other than predatory. 

Public Evidence : A brief review of the XXXX XXXX XXXX XXXX page for Comenity Capital Bank reveals a pattern of complaints, underscoring the systematic nature of these issues : XXXX  Comenity Bank Complaint Page. 

Requested Actions : Full Refund : I urge the CFPB to intervene and compel Comenity Capital Bank to refund the {$170.00} interest charge in full. 

Transparent Communication Mandate : The bank should be obligated to provide clear and timely communication about any upcoming charges or changes, especially those with potential financial penalties. 

Regulation of Promotional Terms : Such misleading promotional terms should be scrutinized, regulated, and if found predatory, removed to ensure a fair consumer environment. 

In the interest of all consumers and in pursuit of transparency and fairness in financial transactions, I implore the CFPB to thoroughly investigate this matter. The public deserves protection against practices that seem designed to exploit, and institutions like Comenity Bank should be held accountable for their actions. 

I trust the CFPB to take the necessary measures in this regard and ensure that consumers like myself can engage in financial transactions without fear of hidden pitfalls or exploitation. 

Thank you for your time and attention to this matter. 

Warm regards, XXXX

Company response to consumer: Closed with monetary relief