Consumer complaint received 2026-03-04 00:00:00
Product: Debt collection — I do not know
Issue: Attempts to collect debt not owed — Debt is not yours
Company: Bread Financial Holdings, Inc.
State: MO

Complaint narrative:
I am submitting this formal response regarding the reply provided by Comenity Bank and Comenity Capital Bank to my Consumer Financial Protection Bureau complaint. After carefully reviewing their response and the attached correspondence, I must respectfully disagree with their conclusions and reiterate that the accounts they referenced do not belong to me and were opened without my knowledge or authorization. First and foremost, I want to clearly state that I have consistently maintained that the accounts associated with Comenity Bank and Comenity Capital Bank are the result of identity theft. I did not apply for these accounts, I did not authorize anyone to open them on my behalf, and I did not knowingly use or benefit from them. Because of this, I filed an official Identity Theft Report with the Federal Trade Commission ( FTC ) to document the fraudulent activity. Despite my identity theft report and the disputes that I submitted, Comenity Bank and Comenity Capital Bank have stated that they completed a fraud investigation and determined that there was no basis to support my fraud claim. However, their response does not explain what documentation was reviewed during the investigation or what specific evidence was used to reach that conclusion. In their response regarding the XXXX XXXX XXXX Credit Card, Comenity Capital Bank stated that the account charged off due to nonpayment and was sold to XXXX XXXX XXXX on XX/XX/XXXX. They also stated that they are reporting the account with a XXXX balance owed to them because the account was sold to another entity. XXXX XXXX XXXX XXXX Similarly, in the response concerning the XXXX Credit Card account XXXX Comenity Bank stated that the account charged off due to nonpayment and was sold to XXXX XXXX XXXX XXXX XX/XX/XXXX. They indicated that the account is being reported as a charge-off that was sold to another entity and that XXXX XXXX XXXX XXXX report the account under its name as the new creditor. XXXX XXXX XXXX XXXX While the company asserts that its reporting is accurate, this statement does not address the central issue that I raised in my complaint : I did not open or authorize these accounts. The mere fact that an account was opened using my personal information does not prove that I was the individual who opened it. Identity theft frequently occurs when criminals obtain a persons identifying information and use it to apply for credit without the victims knowledge. The presence of my name, address, or Social Security number on an account does not establish that I personally applied for the account or authorized its use. Therefore, the conclusion that there was no basis to support the fraud claim is concerning, particularly because the company has not provided any documentation showing that I personally authorized these accounts. If Comenity Bank or Comenity Capital Bank believes that these accounts legitimately belong to me, then they should be able to provide documentary evidence demonstrating that I opened them. Such documentation would typically include : A copy of the original credit application A signed credit agreement bearing my signature Identity verification documents used at the time the account was opened Electronic authentication logs if the account was opened online IP address information showing the location of the application Records showing how the card was issued and activated To date, I have not received any of these documents. Without this documentation, it is not possible to confirm that I authorized these accounts. Another point raised in the companys response is that the accounts were sold to XXXX XXXX XXXX. However, the sale of an account to a third-party debt buyer does not resolve the issue of whether the account was originally opened through identity theft. If the account was fraudulent at the time it was opened, then any subsequent sale or transfer of that account does not change its fraudulent nature. A debt buyer can not obtain greater rights than the original creditor possessed. If the underlying account resulted from identity theft, then the debt buyer should not be reporting or attempting to collect the debt. For this reason, referring me to XXXX XXXX XXXX does not resolve the issue. The responsibility to ensure that the account was legitimate at the time it was opened remains with the original creditor. If the accounts were opened fraudulently, then the appropriate action would be to remove the tradelines from my credit report entirely. Simply reporting a XXXX balance or stating that the account has been sold does not correct the damage caused by the derogatory reporting associated with the accounts. Even when an account shows a XXXX balance, a charge-off notation remains extremely damaging to a consumers credit profile. Charge-offs are among the most severe derogatory items that can appear on a credit report. They can significantly lower a credit score and remain on a credit report for several years. Because of this, the continued reporting of these accounts as charge-offs is causing ongoing harm to my credit. The credit reporting system is intended to provide an accurate record of a consumers credit history. When accounts that do not belong to the consumer appear on the credit report, the accuracy of the system is compromised. I have taken the appropriate steps to address this situation, including filing disputes with the credit reporting agencies and submitting documentation supporting my identity theft claim. I have also submitted complaints through the Consumer Financial Protection Bureau in an effort to resolve this issue. My goal has always been simple : to have the fraudulent accounts removed from my credit report so that my credit file accurately reflects my legitimate credit history. I am not attempting to avoid responsibility for debts that I legitimately owe. If I had opened these accounts, I would accept responsibility for them. However, I did not open them, and I did not authorize anyone to open them on my behalf. Because of this, I believe that the appropriate resolution is the permanent deletion of the Comenity Bank and Comenity Capital Bank tradelines associated with these accounts. In addition, if XXXX XXXX XXXX or any other entity is currently reporting these accounts, those tradelines should also be removed. Allowing multiple companies to report the same fraudulent account under different names would only prolong the damage caused by identity theft. Another important issue is the lack of transparency in the investigation process. Comenity Bank and Comenity Capital Bank have stated that they conducted a fraud investigation and concluded that the accounts were valid. However, they have not explained what evidence was used to support that conclusion. Without access to the documents that were reviewed during the investigation, I can not determine whether the investigation was conducted properly. A fair and transparent investigation should allow the consumer to review the documentation that was used to verify the account. If the company has documentation showing that I personally authorized the accounts, I would like the opportunity to review that documentation. If such documentation does not exist, then the company should acknowledge that the accounts may have been opened fraudulently. The Fair Credit Reporting Act requires that information reported to credit bureaus be accurate and complete. Reporting accounts that do not belong to the consumer does not meet this standard. Because I have filed an FTC Identity Theft Report and consistently disputed these accounts, I believe that a more thorough review of the accounts is warranted. I respectfully request that Comenity Bank and Comenity Capital Bank conduct a new investigation into these accounts and review any documentation related to their origination. If the investigation confirms that the accounts were opened without my authorization, then the appropriate corrective action would be to delete the accounts from my credit report. Specifically, I request the following actions : Permanent deletion of the Comenity Capital Bank XXXX XXXX XXXX Credit Card tradeline Permanent deletion of the Comenity Bank XXXX Credit Card tradeline Removal of all associated late payments, charge-offs, and derogatory remarks Notification to all credit reporting agencies that the accounts were removed due to identity theft Taking these steps would ensure that my credit report accurately reflects my legitimate credit history and would correct the damage caused by the fraudulent accounts. I also request written confirmation once the investigation has been completed and any corrective actions have been taken. Identity theft can have long-lasting consequences for victims, particularly when fraudulent accounts appear on their credit reports. The credit reporting system relies on the accuracy of the information being reported. When fraudulent accounts remain on a consumers credit report, the integrity of the system is compromised. For this reason, I respectfully request that this matter be reviewed carefully and that appropriate corrective actions be taken. My goal is simply to ensure that my credit report reflects only the accounts that I legitimately opened and authorized. Thank you for taking the time to review this response and for considering the information that I have provided.

Company response to consumer: Closed with non-monetary relief