Consumer complaint received 2026-01-22 00:00:00
Product: Credit card — Store credit card
Issue: Other features, terms, or problems — Other problem
Company: Bread Financial Holdings, Inc.
State: MA

Complaint narrative:
I am submitting this complaint regarding Comenity Banks administration of my XXXX XXXX XXXX XXXX XXXX financing account due to a persistent lack of transparency, improper billing practices, and financial harm resulting from undisclosed or inadequately disclosed terms. I have been a customer since XXXX, and since Comenity bank took over, I have had more problems than what it's worth, because I reported them last year they froze my account from usage, and now they state they are going to close my account, however, I am sick of their deceptive practices. 
Despite repeated efforts to understand and reconcile my account, Comenity Bank has failed to provide clear, complete, and accessible documentation supporting the interest rates charged, the application of my payments, and the validity of ancillary insurance products sold in connection with the account. 
Failure to Provide Required Disclosures Comenity Bank has not provided me with : A complete copy of the original, executed credit agreement bearing my signature A clear disclosure of the applicable APR ( s ), including any promotional, deferred-interest, or penalty rates A documented history of rate changes or advance notices of such changes A transparent explanation of how payments are allocated among principal, interest, and fees Without these disclosures, I am unable to verify whether interest and fees were lawfully assessed, which raises concerns under the Truth in Lending Act ( TILA ) and Regulation Z.

Questionable Interest and Payment Practices Over time, my payments have not resulted in a meaningful reduction of the principal balance, despite consistent payment activity. This creates the appearance that payments may be disproportionately allocated to interest and fees. Because Comenity Bank has not provided a full payment allocation methodology or statement-level detail, I can not confirm whether these practices are accurate or compliant. 
Additionally, I have reason to believe that interest rates may have changed without adequate notice, further compounding my inability to validate the legitimacy of the charges assessed.

Insurance Product Misrepresentation I was sold a payment protection or insurance product associated with this account and paid monthly premiums for that coverage. When I attempted to use the coverage due to qualifying hardship circumstances, my claim was denied. Comenity Bank then disclaimed responsibility for the insurance product it marketed and billed.

To date, I have not received : The full insurance policy Clear eligibility criteria or exclusions Proof of informed consent or enrollment authorization Evidence that the coverage sold was appropriate for my circumstances This has resulted in financial loss and raises serious concerns regarding deceptive or abusive practices.

Unauthorized or Improper Account Activity Comenity Bank has initiated debits against my account in a manner that appears inconsistent and unpredictable. I have not been provided with clear ACH authorization documentation or a consistent billing schedule, creating further financial instability and risk. 
Harm to the Consumer As a result of these actions and omissions : I have paid hundreds of dollars in insurance premiums for coverage that proved unusable I have been unable to pay down the principal balance in a reasonable manner I have experienced financial stress, confusion, and loss of trust due to the lack of transparency Sale and Billing of Account Assure Insurance 3. Beginning XX/XX/XXXX, Comenity Bank began charging me monthly premiums labeled ACCOUNT ASSURE XXXX. 
4. Between XX/XX/XXXX and XX/XX/XXXX, I was charged at least {$360.00} in Account XXXX premiums, including but not limited to : o XX/XX/XXXX {$41.00} o XX/XX/XXXX {$44.00} o XX/XX/XXXX {$42.00} o XX/XX/XXXX {$45.00} o XX/XX/XXXX {$45.00} o XX/XX/XXXX {$48.00} o XX/XX/XXXX {$44.00} o XX/XX/XXXX {$47.00} 5. When I attempted to rely on this coverage during financial hardship, my claim was denied.

6. Comenity Bank thereafter disclaimed responsibility for the insurance product it sold and billed, despite collecting premiums directly.

7. I was never provided with : o The full insurance policy o Clear eligibility exclusions o Proof of informed consent o Documentation showing the product was appropriate for my circumstances III. Interest Charges Exceeding or Neutralizing Payments 8. Interest charges were assessed monthly and frequently matched or exceeded my payments, preventing meaningful principal reduction.

9. Representative examples include : o XX/XX/XXXX Interest charge : {$61.00} ; Payment on XX/XX/XXXX : {$150.00} o XX/XX/XXXX Interest charge : {$60.00} ; Payment on XX/XX/XXXX : {$50.00} o XX/XX/XXXX Interest charge : {$57.00} ; Payment on XX/XX/XXXX : {$92.00} XXXX. I was never provided a clear payment allocation methodology explaining how my payments were applied between principal, interest, insurance premiums, and fees. 
IV. Late Fees and Returned Payment Charges XXXX. Comenity Bank repeatedly assessed late fees and returned payment fees, including : Late fees of {$40.00} {$41.00} on XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX XXXX payment charges of {$72.00} ( XX/XX/XXXX ), {$46.00} ( XX/XX/XXXX ), and {$41.00} ( XX/XX/XXXX ) 12. Several returned payment charges coincided with automatic withdrawals initiated by Comenity Bank, not consumer-initiated payments.

V. Retroactive Adjustments and Partial Refunds 13. On XX/XX/XXXX, Comenity Bank issued multiple finance charge refunds totaling over {$75.00}, noting these were corrections from a prior complaint. 
14. Despite these refunds, Account XXXX premiums were not proportionally refunded, and interest charges resumed at comparable levels the following cycles.

Company response to consumer: Closed with monetary relief