Consumer complaint received 2025-07-07 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:
To : Comenity Bank XXXX XXXX XXXX XXXX XXXX XXXXXXXX RE : Formal Legal Dispute Inaccurate Credit Reporting on Closed and Charged-Off Accounts To Whom It May Concern : I am writing to formally dispute and demand immediate correction of your institutions ongoing and unlawful credit reporting related to the following closed and charged-off Comenity Bank accounts, all of which report {$0.00} balances yet continue to display derogatory or outdated payment activity in violation of federal and state law : Accounts in Dispute : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX ) These accounts are clearly marked Closed and Charged Off with no balance owed. Despite this, Comenity Bank has continued to report : Repeated late payment notations months after the accounts were charged off ; Updated past due statuses on accounts that should no longer be active ; Derogatory flags that misrepresent my financial condition to third-party creditors. 

Applicable Federal and State Law Violations : This conduct constitutes willful and negligent violations of the following laws : Federal Fair Credit Reporting Act ( FCRA ) : 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ) Duty to report accurate information.

15 U.S.C. 1681s-2 ( b ) Duty to investigate and correct information after receiving notice of dispute.

15 U.S.C. 1681c ( Section 605 ) Prohibits reportin
g obsolete or misleading information.

15 U.S.C. 1681c2 ( Section 605B ) Requires blocking fraudulent information after ID theft affidavits.

15 U.S.C. 1681i ( Section 611 ) Mandates reasonable reinvestigation of disputed data within 30 days.

15 U.S.C. 1681no ( Sections 616617 ) Subjects furnishers to statutory and punitive damages for willful or negligent noncompliance. 

XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX Requires consumer reporting agencies and furnishers to adopt procedures ensuring maximum possible accuracy. 

XXXX XXXX XXXX  XXXX XXXX Obligates furnishers to respond properly to consumer disputes. 

XXXX XXXX  XXXX XXXX Criminalizes use of personal information to cause harm or financial injury. 

XXXX XXXX XXXXXXXX XXXX XXXX Broadly prohibits unfair, abusive, or deceptive trade practices.

Legal Position on Charge-Offs : A charge-off is a declaration by a creditor that a debt is unlikely to be collected and is written off as a loss for tax purposes under IRS rules. Once a creditor writes off a debt and records it as a loss, it can not legally continue to claim the amount as collectible or update the account as if delinquent without renewed activity. Such reporting constitutes double-dipping, misleading credit agencies and damaging the consumers financial profile.

Comenity Banks conduct constitutes not only inaccurate reporting but also defamation of credit, negligent misrepresentation, and ongoing financial harm to me as a consumer. 

Demand for Relief : I hereby demand that Comenity Bank : Immediately cease and correct all reporting of late payments or updated payment statuses on the above-listed closed and charged-off accounts ; Provide written confirmation of deletion or suppression of derogatory tradelines ; Refrain from further updates to credit reporting agencies unless required by law ; Provide financial compensation for damages under FCRA 616, including emotional distress, credit denials, and lowered credit scores caused by these false reports.

Should you fail to comply within ten ( 10 ) business days, I will escalate this matter through : The Consumer Financial Protection Bureau ( CFPB ), The Federal Trade Commission ( FTC ), The XXXX XXXX of the Attorney General, and Initiate civil litigation seeking full statutory and actual damages for every violation. 

Respectfully, XXXX XXXX

Company response to consumer: Closed with non-monetary relief