Consumer complaint received 2025-08-06 00:00:00
Product: Credit card — Store credit card
Issue: Problem when making payments — Problem during payment process
Company: Bread Financial Holdings, Inc.
State: WI

Complaint narrative:
I was making a {$29.00} purchase at XXXX XXXX XXXX in XXXX, MN on XX/XX/year>. I was told by the sales clerk that my credit card with them had expired, but it was no problem, she said she could reactivate it in a few minutes. Which she did and the purchase was completed. Unknown to me at the time, besides extending the expiration date, they also issued a new account number. 

According to my XXXX statement, my balance on the account was {$29.00} and due on XX/XX/year>. On XX/XX/year> I made a payment of {$29.00} to the credit card using my bank 's online bill pay. That payment was rejected by XXXX XXXX XXXX for not listing the correct account number and sent back to my bank. No attempt was made by XXXX to contact me about the payment, it was simply refused. 

I rescheduled the payment with my bank after locating the new card that was sent to me and re-entering the account number into my bill pay system. This second payment was sent on XX/XX/year>. When I received the XXXX statement for the account, it showed a late fee of {$31.00}, interest charges of {$2.00} and a previous balance of {$29.00} for a total balance of {$61.00}. I contacted their customer service and explained what had happened and the representative told me that I should not use my bank 's bill pay system because of issues like this. I informed them that I had never had any issues before and that a second payment was successfully sent to them. I also asked why they couldn't cross reference my old account number, use my name or even call me to clear up the issue without refusing the first payment. They offered no good reason for that and insisted that it had to do with my online bill pay service. 

My XXXX statement had the {$29.00} payment as being received on XX/XX/year> and a refund of late fees of {$15.00} on XX/XX/year>. But on the same statement, a new late fee of {$37.00} was charged on XX/XX/year>, the late fee refund of {$15.00} was added back on and an interest charge of {$2.00} for a total balance of {$70.00} on the account due XX/XX/year>. Once again I called, asked several times to speak to someone higher up the ladder and finally reached what I believe to be a fairly high up supervisor. I calmly explained to her the whole story and asked her to accept at least half the fault for not cross referencing the payment through either my name or the old account number and she refused to budge. I informed her that I had payed what I owed ( {$29.00} ) and they would have to take me to small claims court to get anything else. I can't remember if it was this call or the first one, but I also closed the account. 

My current XXXX statement once again lists a late fee of {$37.00} and an interest charge of {$2.00} bringing my total balance to {$110.00} for a {$29.00} charge that was paid two months earlier! I also have reason to believe they have reported this to the credit bureau because my credit score has recently dropped about 80 points. This is when I decided to contact you guys for help in this ridiculous matter.

Company response to consumer: Closed with explanation