Consumer complaint received 2025-03-31 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: Bread Financial Holdings, Inc.
State: MD

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, MD XXXX Consumer Financial Protection Bureau XXXX XXXX XXXX XXXX XXXX DC XXXX Subject : URGENT Complaint Against Comenity Bank for XXXX XXXX Reporting Violations, Unlawful Fee Assessments, and Deceptive Practices Dear Consumer Financial Protection Bureau, I am filing this formal complaint against Comenity Bank concerning its XXXX XXXX Credit Card ( Acct. No. XXXX XXXX XXXX XXXX ) for repeated violations of the Fair Credit Reporting Act ( FCRA ), the Fair Debt Collection Practices Act ( FDCPA ), and the Truth in Lending Act ( TILA ). These violations include the unlawful continuation of interest charges on a fully paid account, improper credit reporting, deceptive communication, and failure to honor commitments to correct its errors. 

Background and Timeline of Violations In XX/XX/year>, I paid my credit card balance of {$2100.00} in fullwell in advance of the XX/XX/year> due date ( see enclosed statement and proof of payment ). Despite this full and timely payment, Comenity Bank began charging interest and late fees on a {$0.00} balancea blatant violation of TILA ( 15 U.S. Code 1601 et seq. ), which requires clear and accurate disclosures of finance charges and prohibits interest on XXXX balances when paid in full by the due date. 

I contacted Comenity Bank multiple times in good faith to dispute these charges. In XX/XX/year>, a manager acknowledged their system error, confirmed I owed nothing, and promised that all associated fees and negative credit reporting would be reversed. Initially, that correction seemed to take effect. 

However, in XX/XX/year>, I received another statement with new minimum interest charges. By XX/XX/year>, the account had inexplicably ballooned to a {$62.00} balance, entirely consisting of fees and phantom interest. This occurred despite me not using the card, and the fact that the balance should have remained at {$0.00}. My repeated efforts to resolve the matter with Comenity were met with contradictory responses and no meaningful correction. 

Legal Violations Fair Credit Reporting Act ( 15 U.S. Code 1681s-2 ) Comenity Bank knowingly reported inaccurate, derogatory information to credit bureaus after acknowledging their internal error. This violates the FCRA, which mandates that furnishers of credit data must report accurate information and must promptly correct inaccuracies.

Fair Debt Collection Practices Act ( 15 U.S. Code 1692e, 1692f ) By continuing to bill me for an invalid debt and making false representations about the amount owed, Comenity engaged in deceptive and unfair collection practices. 

Truth in Lending Act ( Regulation Z ) Charging interest on a balance that was paid in full and on time constitutes a violation of TILA and Regulation Z, which prohibits undisclosed or deceptive interest charges. 

Breach of Contract and Promissory Estoppel A Comenity representative explicitly assured me the matter was resolved and promised all erroneous fees and credit marks would be removed. They failed to honor this promise, resulting in material harm.

Consequences of Comenity Banks Misconduct Due to Comenity Banks actions, my credit score has dropped by approximately XXXX points, severely impairing my ability to obtain financing. My credit limit was reduced without cause, which triggered similar limit reductions by other creditors. I have suffered quantifiable financial harm and emotional distress from this situation. 

Despite making every attempt to resolve this directly, Comenity has failed to fulfill its legal obligations. It has willfully and negligently failed to investigate, correct, or cease the dissemination of inaccurate credit informationgiving rise to potential civil liability under 15 U.S. Code 1681n and 1681o, which authorize statutory and punitive damages for willful and negligent FCRA violations. 

Please review the enclosures : XX/XX/year> Statement ( showing full balance and due date ) Payment confirmation dated XX/XX/year> XXXX, XXXX, and XX/XX/year> statements ( showing improper fees and interest ) Prior written complaint to Comenity Bank Comenity Banks conduct is egregious, deceptive, and damaging. I urge the Bureau to take swift and decisive action to hold them accountable and ensure they do not continue these harmful practices against other consumers. 

Sincerely, XXXX XXXX XXXX XXXX

Company response to consumer: Closed with monetary relief