Consumer complaint received 2026-02-22 00:00:00
Product: Credit card — Store credit card
Issue: Fees or interest — Problem with fees
Company: Bread Financial Holdings, Inc.
State: OR

Complaint narrative:
In XX/XX/XXXX, I sold my home and, as part of the loan process, several accounts were paid off through escrow. XXXX of these was my XXXX XXXX account. The check issued for this payoffin the amount of $ XXXXwas deposited by XXXXXXXX XXXXXXXX on XX/XX/XXXX at XXXX AM PT, according to the check record I received. 

Despite the check being deposited, the payment was never applied to my XXXX XXXX account. 

Between XXXX and XX/XX/XXXX, I made multiple calls to both XXXX XXXX and Comenity Bank attempting to resolve the issue. I was repeatedly instructed to send a copy of the cashed check to the XXXX XXXX account correspondence address. After doing so, I later learned that I had been given the wrong address and that the documentation needed to be sent to a separate XXXX XXXX XXXX credit disputes. I sent the information again, but was told it was not received. When I asked for an address that would accept certified mail, I was informed that no such address exists, leaving me with no verifiable way to prove delivery. 

Each time, I provided the same documentation, including : A copy of the front and back of the check Proof of endorsement by XXXX XXXX Confirmation that the funds were paid out of my escrow trust My name and account number clearly listed The check made payable to XXXX XXXX Despite this XXXX the payment was never credited. 

I eventually asked to close my account. Instead of resolving the issue, the account was sent to XXXX XXXX XXXX for collections. XXXX was provided a certified copy of the paid check as well. In response, they sent me a years worth of billing statements showing that the {$300.00} payment was never appliedeven though XXXX cashed the check. 

XXXX now states they require a payoff statement from XXXX to clear the matter. This should be a simple process, as XXXX has the check, the deposit record, and the ability to trace where the funds were applied. Instead, I am being told by XXXX that there is nothing they can do to look up the check or determine where the payment was misapplied. 

On XX/XX/XXXX, I spoke with XXXX XXXX agents and a supervisor. I was again told that XXXX can not investigate the check, can not locate where the funds were applied, and can not correct the error. I was told to contact XXXX. XXXX, in turn, tells me to contact XXXX. Neither party is communicating with the other, and neither is acknowledging the documented proof that XXXX accepted my payment and failed to credit my account. 

As a result, I am now being held responsible for an unpaid balance and nearly {$900.00} in interest and fees on a debt that was fully paid in XX/XX/XXXX. I am being asked to pay interest on money I did not owe. 

At this point, it appears that both XXXX and XXXX are hoping to wear me down rather than acknowledge that XXXX accepted funds and failed to apply them correctly. I am attempting to obtain legal assistance through my employers XXXX program, but due to my rural location, they are having difficulty finding an attorney who participates. 

This situation is deeply concerning. I paid the debt. I can prove it. The check was cashed. Yet no one is addressing the error, and I am being passed back and forth between agencies with no resolution. This can not be right or legal.

Company response to consumer: Closed with monetary relief