Consumer complaint received 2022-10-04 00:00:00
Product: Credit card or prepaid card — Store credit card
Issue: Fees or interest — Problem with fees
Company: Bread Financial Holdings, Inc.
State: VA

Complaint narrative:
I purchased an engagement ring through XXXX on XX/XX/XXXX. This was financed through Comenity Bank through their partnership with XXXX. It was setup as an 18-month interested-free loan of {$7000.00} via a Comenity credit card. My plan was setup so that paying the minimum balance each month would result in completing all payments by completion of the 18-month time frame. The {$390.00} being paid each month would amount to over {$7000.00} after 18 months. 

I was never sent an actual credit card tied to this account and all my paperwork referenced only the last 4 digits of my account number, resulting in even to this day, I have never been provided with my account number. Ive asked for it over the phone with customer service, and theyve consistently told me that it was against their policy to give out account numbers over the phone, even though I had provided all other identifying information for myself. For these reasons, Ive never been able to set up an online account for account management, and Ive made every payment through Comenitys automated phone service. 

In XXXX of XXXX, I returned to XXXX to purchase a wedding ring to match the engagement ring. When going through this process, I brought up my worries about messing up my Comenity payments. I asked if I could have it done through a second account, and it was recommended to me by XXXX employees to keep it on the same account. I expressed further concerns about my desire to make sure that my initial 18-month financing of the engagement ring would not be interrupted by this additional purchase, and I was reassured on multiple occasions that I had nothing to worry about and that my initial 18-month financing would be paid off by XXXX, and I could focus on the remainder for just the wedding ring. 

On XX/XX/XXXX at XXXX EST, I dialed into the pay-by-phone line, as I have in each month prior, and made my payment. The automated service relayed my current balance to me, which was much higher than I was expecting it to be. I used the automated service to recount the last 10 transactions on the card, which revealed a Finance Charge of {$2200.00} added to my account balance.

To investigate this charge further, I re-dialed into the pay-by-phone line on XX/XX/XXXX at XXXX EST in attempt to speak to a customer service representative. The customer service representative informed me that the Finance Charge of {$2200.00} was added due to outstanding balance on my 18-month plan. I discussed how I had made each payment that was expected of me, and that I really did not understand how I could be charged {$2200.00}, which my plan from the beginning was set up to be paid off in time, and I had made all of these payments. The customer service representative repeatedly informed me that there was nothing he could do, and that it was automatically added to my account balance. 

I asked to speak to a supervisor and proceeded to speak to a senior customer service representative. The senior customer service representative took a look at my account and relayed similar information regarding the fact there was absolutely nothing they could do and that I would just have to pay the {$2200.00}. 

At this point, I asked to speak to a 2nd level supervisor. This supervisor looked through my account as well. She confirmed that I had made all my payments and that these were made through the automated pay-by-phone service. She admitted that I had made each of the payments, as they were expected of me, but again, there was nothing that she could do and that Comenitys policy prevented them from removing any Finance Charges from an account. She informed me that these was information on my bill, however I have not received bills from Comenity for the last 2-3 months. Yet Ive continued to pay my payments through phone. During this conversation, my frustration has been building, and I am finally offered my only possible path forward, which is to write a letter of dispute. The supervisor also informed me that she knew the dispute would be dismissed and indicated that it wouldnt be worth my time. Regardless, she provided me with information to initiate a dispute. 

From XX/XX/XXXX to XX/XX/XXXX, I made payments to Comenity totaling {$7500.00} ( see below ). This has well surpassed the initial 18-month loan I was provided. Furthermore, I was reassured countless times during this period that as I proceeded to make my payments, that they would complete my 18-month payments at the correct time. It seems as if, contrary to what was disclosed to me, the purchase of the wedding ring in XXXX of XXXX caused larger portions of my payments to go towards the second purchase, and not the original 18-month loan. I have always been diligent about making payments and I am not in any kind of position where I am not able to make my payments. I believe this Finance Charge of {$2200.00} on XX/XX/XXXX should have never been applied to my balance. 

I am requesting that the {$2200.00} charge applied on XX/XX/XXXX be removed from my balance. Through XX/XX/XXXX, I have paid over {$7500.00}, exceeding the initial XXXX loan amount of {$7000.00}. I expressed to the customer service representative that I would be willing to pay off the remainder of my balance if this {$2200.00} could be removed. 

Throughout this process, I have had fantastic service from the employees at XXXX. Id like to come out of this process with the ability to confidently recommend to all my friends and family to use XXXX and Comenity Bank for their jewelry needs. Up to this point, Comenity has not provided basic essentials to my payment process, such as my account number, a physical credit card, access to online account management, and any positive quality of customer service, yet I have still been sure to make my payments. 

My wedding is this upcoming weekend, and this is an unwelcome stress that has been physically taxing on me. Please refer to my information at the top of this letter to review my account, as I still to this day have not been provided my full account number for my Comenity account. Please reach out by phone or email if possible, as my last 2 bills from Comenity never arrived, and I no longer your mail correspondence will be received.

Company response to consumer: Closed with monetary relief