Consumer complaint received 2025-12-15 00:00:00
Product: Credit card — Store credit card
Issue: Problem with a purchase shown on your statement — Overcharged for something you did purchase with the card
Company: Bread Financial Holdings, Inc.
State: FL

Complaint narrative:
I am filing a complaint regarding a deferred interest promotional credit card issued by Comenity ( Bread Financial ) for an XXXX furniture purchase. This was a no interest if paid in full within 24 months promotion on my XXXXbranded Comenity card. 

On or about XX/XX/XXXX, I used the XXXX credit card to finance furniture under a XXXX deferred interest promotion. The promotional balance was tied to this purchase and was supposed to be paid in full by XX/XX/XXXX to avoid interest. 

As of the billing cycle before the promotional period ended, my statement showed a remaining promotional balance of {$7500.00}. I continued making payments and believed I was on track to pay the balance off within the promotion period based on the information provided in my statements and the nature of the offer. 

Recently, I discovered that Comenity posted a retroactive deferred interest charge of {$9800.00}, more than the remaining balance, causing my total balance to jump dramatically. I learned of this only because I received a utilization alert from XXXX, not from any clear, advance warning from Comenity that such a large lumpsum interest charge was about to be added. 

I contacted Comenity to request an explanation and relief. I explained that : This was a deferred interest promotion, not a standard 0 % APR ; The interest was added retroactively back to the purchase date ; and The charge of {$9800.00} in interest on a {$7500.00} remaining promotional balance is disproportionate and punitive. 

I also wish to note that I was unemployed from XX/XX/XXXX through XX/XX/XXXX, yet I continued making payments on this account throughout that period, prioritizing this obligation despite financial hardship. I did not stop paying or attempt to walk away from the debt ; I made goodfaith efforts to manage the balance and believed I was on track to pay the promotional balance within the required timeframe. 

I informed Comenity that I am willing and able to pay the remaining principal in full immediately, but I requested that the deferred interest be reversed or significantly reduced as a onetime accommodation. Comenity representatives refused to make any adjustment, saying it was policy, despite my good payment history and my willingness to pay the principal in full. 

I believe this situation illustrates the CFPBs concerns about deferred interest promotions. The disclosures and ongoing statements did not make clear that I could end up owing more in interest than the remaining principal if I missed the payoff date by a small margin. I did not receive a clear, prominent reminder or warning close to the end date indicating the exact amount needed and the specific deadline to avoid nearly {$10000.00} in retroactive interest. 

I am requesting that the CFPB : Require Comenity to review my account and remove or substantially reduce the {$9800.00} deferred interest charge, given that I am prepared to pay the remaining principal balance in full. 

Evaluate whether Comenitys promotional disclosures, statements, and payoff guidance for this XXXX deferred interest promotion comply with Regulation Zs requirements for deferred interest, payment allocation, and clear, conspicuous disclosure of the risk of retroactive interest. 

I am attaching : Copies of my credit card statements showing the promotional plan, remaining balance, and the deferred interest posting ; Proof of my payments ( dates and amounts ), including during my unemployment from XX/XX/XXXX through XX/XX/XXXX ; Any promotional materials or terms I received for the Arhaus deferred interest offer ; and Notes or correspondence from my attempts to resolve this directly with Comenity. 

I respectfully ask for the CFPBs assistance in obtaining a fair resolution.

Company response to consumer: Closed with explanation